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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3273 Introduced in House (IH)]

109th CONGRESS
  1st Session
                                H. R. 3273

  To amend the Internal Revenue Code of 1986 to allow a deduction for 
                        flexible fuel vehicles.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 13, 2005

Mr. Saxton (for himself and Mr. Gerlach) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
  To amend the Internal Revenue Code of 1986 to allow a deduction for 
                        flexible fuel vehicles.

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

SECTION 1. DEDUCTION FOR FLEXIBLE FUEL VEHICLES.

    (a) In General.--Paragraph (1) of section 179A(a) of the Internal 
Revenue Code of 1986 is amended by striking ``and'' at the end of 
subparagraph (A), by striking the period at the end of subparagraph (B) 
and inserting ``, and'', and by inserting after subparagraph (B) the 
following new subparagraph:
                    ``(C) any qualified flexible fuel vehicle.''.
    (b) Qualified Flexible Fuel Vehicle.--Section 179A of such Code is 
amended by redesignating subsections (e) and (f) as subsections (f) and 
(g) and by inserting after subsection (d) the following new subsection:
    ``(e) Qualified Flexible Fuel Vehicle.--For purposes of this 
section--
            ``(1) In general.--The term `qualified flexible fuel 
        vehicle' means, subject to the limitation of paragraph (3), a 
        motor vehicle produced by an original equipment manufacturer 
        which meets the requirements of paragraph (2) and is designed 
        so that vehicle is propelled by an engine which can use each of 
        the following to propel the vehicle:
                    ``(A) Gasoline.
                    ``(B) One or more fuels at least 85 percent of 
                which is 1 or more of the following: methanol, ethanol, 
                any other alcohol, or ether.
                    ``(C) Any combination of gasoline and one or more 
                of the fuels described in subparagraph (B).
            ``(2) Other requirements.--A vehicle meets the requirements 
        of this paragraph if--
                    ``(A) the vehicle is acquired for use by the 
                taxpayer and not for resale, and
                    ``(B) the original use of the vehicle commences 
                with the taxpayer.
            ``(3) Limitation.--A qualified flexible fuel vehicle shall 
        be taken into account for purposes of this section only to the 
        extent of the portion of the basis of such vehicle which is 
        attributable to an engine which may use the fuels described in 
        paragraph (1), to the storage or delivery to the engine of such 
        fuels, or to the exhaust of gases from combustion of such 
        fuels.
            ``(4) Exceptions.--The term `qualified flexible fuel 
        vehicle' does not include any qualified electric vehicle (as 
        defined in section 30(c)) or any vehicle to which subsection 
        (a)(1)(A) applies.''.
    (c) Conforming Amendments.--
            (1) Paragraph (2) of section 179A(a) of such Code is 
        amended by striking ``If a vehicle'' and inserting ``If a 
        vehicle to which paragraph (1)(A) applies''.
            (2) Paragraph (1) of section 179A(b) of such Code is 
        amended--
                    (A) in the heading for such paragraph, by inserting 
                ``and qualified flexible fuel vehicles'' after 
                ``property'',
                    (B) in subparagraph (A), by striking ``subsection 
                (a)(1)(A)'' and inserting ``subparagraphs (A) and (C) 
                of subsection (a)(1)'', and
                    (C) in the heading for subparagraph (B), by 
                inserting ``for qualified clean-fuel vehicle property'' 
                after ``Phaseout''.
    (d) Termination.--Subsection (g) of section 179A of such Code 
(relating to termination), as redesignated by this section, is amended 
to read as follows:
    ``(g) Termination.-- This section shall not apply to--
            ``(1) any qualified clean-fuel vehicle property or any 
        qualified clean-fuel vehicle refueling property placed in 
        service after December 31, 2006, or
            ``(2) any qualified flexible fuel vehicle placed in service 
        after December 31, 2010.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
                                 <all>
```