I 

109TH CONGRESS 

1ST SESSION H. R. 3059

To provide for Flexible Fuel Vehicle (FFV) refueling capability at new and 

existing refueling station facilities to promote energy security. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 24, 2005

Ms. CARSON (for herself and Mr. SHIMKUS) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL

To provide for Flexible Fuel Vehicle (FFV) refueling capability at new and existing refueling station facilities to 

promote energy security.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE, ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Alternative Fuel Utilization and Infrastructure Develop6 ment Incentives Act of 2005’’. 

7 (b) AMENDMENT OF 1986 CODE.—Except as other8 wise expressly provided, whenever in this division an 

9 amendment or repeal is expressed in terms of an amend10 ment to, or repeal of, a section or other provision, the ref-
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1 erence shall be considered to be made to a section or other 

2 provision of the Internal Revenue Code of 1986. 

3 (c) TABLE OF CONTENTS.—The table of contents for 

4 this Act is as follows:

Sec. 1. Short title, etc. 

Sec. 2. Purpose. 

Sec. 3. Findings. 

Sec. 4. Incentives for the installation of alternative fuel refueling stations. 

Sec. 5. Incentives for the retail sale of alternative fuels as motor vehicle fuel.

5 SEC. 2. PURPOSE. 

6 The purpose of this Act is to decrease the dependence 

7 of the United States on foreign oil by increasing the use 

8 of high ratio blends of gasoline with a minimum 85 per9 cent domestically derived ethanol content (E–85) as an al10 ternative fuel and providing greater access to this fuel for 

11 American motorists. 

12 SEC. 3. FINDINGS. 

13 Congress finds the following: 

14 (1) The growing United States reliance on for15 eign produced petroleum and the recent escalation of 

16 crude oil prices demands that all prudent measures 

17 be undertaken to increase United States refining ca18 pacity, domestic oil production, and expanded utili19 zation of alternative forms of transportation fuels 

20 and infrastructure. 

21 (2) Recent studies confirm the environmental 

22 and overall energy security benefits of high ratio 

23 blends of gasoline with a minimum 85 percent do-
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1 mestically derived ethanol content (E–85), especially 

2 with regard to the reduction of greenhouse gas emis3 sions from the national on-road passenger car vehi4 cle fleet. 

5 (3) The market penetration of E–85 capable 

6 Flexible Fuel Vehicles (FFVs) now exceeds 

7 5,000,000 with an additional 1,000,000 or more 

8 FFVs expected to be added annually as automakers 

9 continue to respond positively to congressionally pro10 vided production incentives. 

11 (4) It is further recognized that actual imple12 mentation of the use of E–85 fuel has been signifi13 cantly underutilized due primarily to the lack of E–

14 85 refueling infrastructure availability and pro15 motion and that such utilization rate will continue to 

16 lag unless resources are provided to substantially ac17 celerate national refueling infrastructure develop18 ment. 

19 (5) Additionally, incentives in the form of tax 

20 credits can serve to stimulate infrastructure develop21 ment and E–85 fuel utilization. 
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1 SEC. 4. INCENTIVES FOR THE INSTALLATION OF ALTER2 NATIVE FUEL REFUELING STATIONS. 

3 (a) IN GENERAL.—Subpart B of part IV of sub4 chapter A of chapter 1 (relating to foreign tax credit, etc.) 

5 is amended by adding at the end the following new section: 

6 ‘‘SEC. 30B. ALTERNATIVE FUEL VEHICLE REFUELING PROP7 ERTY CREDIT. 

8 ‘‘(a) CREDIT ALLOWED.—There shall be allowed as 

9 a credit against the tax imposed by this chapter for the 

10 taxable year an amount equal to 50 percent of the cost 

11 of any qualified alternative fuel vehicle refueling property 

12 placed in service by the taxpayer during the taxable year. 

13 ‘‘(b) LIMITATION.—

14 ‘‘(1) IN GENERAL.—The credit allowed under 

15 subsection (a) with respect to any alternative fuel 

16 vehicle refueling property shall not exceed—

17 ‘‘(A) $30,000 in the case of a property of 

18 a character subject to an allowance for depre19 ciation, and 

20 ‘‘(B) $1,000 in any other case. 

21 ‘‘(2) PHASEOUT.—In the case of any qualified 

22 alternative fuel vehicle refueling property placed in 

23 service after December 31, 2010, the limit otherwise 

24 applicable under paragraph (1) shall be reduced 

25 by—
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1 ‘‘(A) 25 percent in the case of any alter2 native fuel vehicle refueling property placed in 

3 service in calendar year 2011, and 

4 ‘‘(B) 50 percent in the case of any alter5 native fuel vehicle refueling property placed in 

6 service in calendar year 2012. 

7 ‘‘(c) DEFINITIONS.—For purposes of this section—

8 ‘‘(1) QUALIFIED ALTERNATIVE FUEL VEHICLE

9 REFUELING PROPERTY.—Except as provided in 

10 paragraph (2), the term ‘qualified alternative fuel 

11 vehicle refueling property’ has the meaning given to 

12 such term by section 179A(d), but only with respect 

13 to any fuel at least 85 percent of the volume of 

14 which consists of ethanol. 

15 ‘‘(2) RESIDENTIAL PROPERTY.—In the case of 

16 any property installed on property which is used as 

17 the principal residence (within the meaning of sec18 tion 121) of the taxpayer, paragraph (1) of section 

19 179A(d) shall not apply. 

20 ‘‘(d) APPLICATION WITH OTHER CREDITS.—The 

21 credit allowed under subsection (a) for any taxable year 

22 shall not exceed the excess (if any) of—

23 ‘‘(1) the regular tax for the taxable year re24 duced by the sum of the credits allowable under sub25 part A and sections 27, 29, and 30, over 
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1 ‘‘(2) the tentative minimum tax for the taxable 

2 year. 

3 ‘‘(e) CARRYFORWARD ALLOWED.—

4 ‘‘(1) IN GENERAL.—If the credit amount allow5 able under subsection (a) for a taxable year exceeds 

6 the amount of the limitation under subsection (d) 

7 for such taxable year, such excess shall be allowed 

8 as a credit carryforward for each of the 20 taxable 

9 years following the unused credit year. 

10 ‘‘(2) RULES.—Rules similar to the rules of sec11 tion 39 shall apply with respect to the credit 

12 carryforward under paragraph (1). 

13 ‘‘(f) SPECIAL RULES.—For purposes of this sec14 tion—

15 ‘‘(1) BASIS REDUCTION.—The basis of any 

16 property shall be reduced by the portion of the cost 

17 of such property taken into account under sub18 section (a). 

19 ‘‘(2) NO DOUBLE BENEFIT.—No deduction 

20 shall be allowed under section 179A with respect to 

21 any property with respect to which a credit is al22 lowed under subsection (a). 

23 ‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTI24 TY.—In the case of any qualified alternative fuel ve25 hicle refueling property the use of which is described 
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1 in paragraph (3) or (4) of section 50(b) and which 

2 is not subject to a lease, the person who sold such 

3 property to the person or entity using such property 

4 shall be treated as the taxpayer that placed such 

5 property in service, but only if such person clearly 

6 discloses to such person or entity in a document the 

7 amount of any credit allowable under subsection (a) 

8 with respect to such property (determined without 

9 regard to subsection (d)). 

10 ‘‘(4) PROPERTY USED OUTSIDE UNITED

11 STATES, ETC., NOT QUALIFIED.—No credit shall be 

12 allowable under subsection (a) with respect to any 

13 property referred to in section 50(b)(1) or with re14 spect to the portion of the cost of any property 

15 taken into account under section 179. 

16 ‘‘(5) ELECTION NOT TO TAKE CREDIT.—No 

17 credit shall be allowed under subsection (a) for any 

18 property if the taxpayer elects not to have this sec19 tion apply to such property. 

20 ‘‘(6) RECAPTURE RULES.—Rules similar to the 

21 rules of section 179A(e)(4) shall apply. 

22 ‘‘(g) REGULATIONS.—The Secretary shall prescribe 

23 such regulations as necessary to carry out the provisions 

24 of this section. 
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1 ‘‘(h) TERMINATION.—This section shall not apply to 

2 any property placed in service after December 31, 2013.’’. 

3 (b) CONFORMING AMENDMENTS.—

4 (1) Section 1016(a) is amended by striking 

5 ‘‘and’’ at the end of paragraph (30), by striking the 

6 period at the end of paragraph (31) and inserting ‘‘, 

7 and’’, and by adding at the end the following new 

8 paragraph: 

9 ‘‘(32) to the extent provided in section 

10 30B(f)(1).’’. 

11 (2) Section 55(c)(2) is amended by inserting 

12 ‘‘30B(e),’’ after ‘‘30(b)(3),’’. 

13 (3) Section 6501(m) is amended by inserting 

14 ‘‘30B(f)(5),’’ after ‘‘30(d)(4),’’. 

15 (4) The table of sections for subpart B of part 

16 IV of subchapter A of chapter 1 is amended by in17 serting after the item relating to section 30A the fol18 lowing new item:

‘‘Sec. 30B. Alternative fuel vehicle refueling property credit.’’.

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to property placed in service after 

21 the date of the enactment of this Act, in taxable years 

22 ending after such date. 
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1 SEC. 5. INCENTIVES FOR THE RETAIL SALE OF ALTER2 NATIVE FUELS AS MOTOR VEHICLE FUEL. 

3 (a) IN GENERAL.—Subpart D of part IV of sub4 chapter A of chapter 1 (relating to business related cred5 its) is amended by inserting after section 40A the fol6 lowing new section: 

7 ‘‘SEC. 40B. CREDIT FOR RETAIL SALE OF ALTERNATIVE 

8 FUELS AS MOTOR VEHICLE FUEL. 

9 ‘‘(a) GENERAL RULE.—The alternative fuel retail 

10 sales credit for any taxable year is 35 cents for each gallon 

11 of alternative fuel sold at retail by the taxpayer during 

12 such year. 

13 ‘‘(b) DEFINITIONS.—For purposes of this section—

14 ‘‘(1) ALTERNATIVE FUEL.—The term ‘alter15 native fuel’ means any fuel at least 85 percent of the 

16 volume of which consists of ethanol. 

17 ‘‘(2) SOLD AT RETAIL.—

18 ‘‘(A) IN GENERAL.—The term ‘sold at re19 tail’ means the sale, for a purpose other than 

20 resale, after manufacture, production, or impor21 tation. 

22 ‘‘(B) USE TREATED AS SALE.—If any per23 son uses alternative fuel (including any use 

24 after importation) as a fuel to propel any quali25 fied alternative fuel motor vehicle (as defined in 

26 this section) before such fuel is sold at retail, 
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1 then such use shall be treated in the same man2 ner as if such fuel were sold at retail as a fuel 

3 to propel such a vehicle by such person. 

4 ‘‘(3) QUALIFIED ALTERNATIVE FUEL MOTOR

5 VEHICLE.—The term ‘new qualified alternative fuel 

6 motor vehicle’ means any motor vehicle—

7 ‘‘(A) which is capable of operating on an 

8 alternative fuel, 

9 ‘‘(B) the original use of which commences 

10 with the taxpayer, 

11 ‘‘(C) which is acquired by the taxpayer for 

12 use or lease, but not for resale, and 

13 ‘‘(D) which is made by a manufacturer. 

14 ‘‘(c) ELECTION TO PASS CREDIT.—A person which 

15 sells alternative fuel at retail may elect to pass the credit 

16 allowable under this section to the purchaser of such fuel 

17 or, in the event the purchaser is a tax-exempt entity or 

18 otherwise declines to accept such credit, to the person 

19 which supplied such fuel, under rules established by the 

20 Secretary. 

21 ‘‘(d) PASS-THRU IN THE CASE OF ESTATES AND

22 TRUSTS.—Under regulations prescribed by the Secretary, 

23 rules similar to the rules of subsection (d) of section 52 

24 shall apply. 
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1 ‘‘(e) TERMINATION.—This section shall not apply to 

2 any fuel sold at retail after December 31, 2010.’’. 

3 (b) CREDIT TREATED AS BUSINESS CREDIT.—Sec4 tion 38(b) (relating to current year business credit) is 

5 amended by striking ‘‘plus’’ at the end of paragraph (18), 

6 by striking the period at the end of paragraph (19) and 

7 inserting ‘‘, plus’’, and by adding at the end the following 

8 new paragraph: 

9 ‘‘(20) the alternative fuel retail sales credit de10 termined under section 40B(a).’’. 

11 (c) CLERICAL AMENDMENT.—The table of sections 

12 for subpart D of part IV of subchapter A of chapter 1 

13 is amended by inserting after the item relating to section 

14 40A the following new item:

‘‘Sec. 40B. Credit for retail sale of alternative fuels as motor vehicle fuel.’’.

15 (d) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to fuel sold at retail after the date 

17 of the enactment of this Act, in taxable years ending after 

18 such date.

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