I 

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. 

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

3 SECTION 1. DEDUCTION FOR FLEXIBLE FUEL VEHICLES. 

4 (a) IN GENERAL.—Paragraph (1) of section 179A(a) 

5 of the Internal Revenue Code of 1986 is amended by strik6 ing ‘‘and’’ at the end of subparagraph (A), by striking 

7 the period at the end of subparagraph (B) and inserting 

8 ‘‘, and’’, and by inserting after subparagraph (B) the fol9 lowing new subparagraph: 

10 ‘‘(C) any qualified flexible fuel vehicle.’’. 
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1 (b) QUALIFIED FLEXIBLE FUEL VEHICLE.—Section 

2 179A of such Code is amended by redesignating sub3 sections (e) and (f) as subsections (f) and (g) and by in4 serting after subsection (d) the following new subsection: 

5 ‘‘(e) QUALIFIED FLEXIBLE FUEL VEHICLE.—For 

6 purposes of this section— 

7 ‘‘(1) IN GENERAL.—The term ‘qualified flexible 

8 fuel vehicle’ means, subject to the limitation of para9 graph (3), a motor vehicle produced by an original 

10 equipment manufacturer which meets the require11 ments of paragraph (2) and is designed so that vehi12 cle is propelled by an engine which can use each of 

13 the following to propel the vehicle: 

14 ‘‘(A) Gasoline. 

15 ‘‘(B) One or more fuels at least 85 percent 

16 of which is 1 or more of the following: meth17 anol, ethanol, any other alcohol, or ether. 

18 ‘‘(C) Any combination of gasoline and one 

19 or more of the fuels described in subparagraph 

20 (B). 

21 ‘‘(2) OTHER REQUIREMENTS.—A vehicle meets 

22 the requirements of this paragraph if— 

23 ‘‘(A) the vehicle is acquired for use by the 

24 taxpayer and not for resale, and 
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1 ‘‘(B) the original use of the vehicle com2 mences with the taxpayer. 

3 ‘‘(3) LIMITATION.—A qualified flexible fuel ve4 hicle shall be taken into account for purposes of this 

5 section only to the extent of the portion of the basis 

6 of such vehicle which is attributable to an engine 

7 which may use the fuels described in paragraph (1), 

8 to the storage or delivery to the engine of such fuels, 

9 or to the exhaust of gases from combustion of such 

10 fuels. 

11 ‘‘(4) EXCEPTIONS.—The term ‘qualified flexible 

12 fuel vehicle’ does not include any qualified electric 

13 vehicle (as defined in section 30(c)) or any vehicle 

14 to which subsection (a)(1)(A) applies.’’. 

15 (c) CONFORMING AMENDMENTS.— 

16 (1) Paragraph (2) of section 179A(a) of such 

17 Code is amended by striking ‘‘If a vehicle’’ and in18 serting ‘‘If a vehicle to which paragraph (1)(A) ap19 plies’’. 

20 (2) Paragraph (1) of section 179A(b) of such 

21 Code is amended— 

22 (A) in the heading for such paragraph, by 

23 inserting ‘‘AND QUALIFIED FLEXIBLE FUEL VE24 HICLES’’ after ‘‘PROPERTY’’, 
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1 (B) in subparagraph (A), by striking ‘‘sub2 section (a)(1)(A)’’ and inserting ‘‘subpara3 graphs (A) and (C) of subsection (a)(1)’’, and 

4 (C) in the heading for subparagraph (B), 

5 by inserting ‘‘FOR QUALIFIED CLEAN-FUEL VE6 HICLE PROPERTY’’ after ‘‘PHASEOUT’’. 

7 (d) TERMINATION.—Subsection (g) of section 179A 

8 of such Code (relating to termination), as redesignated by 

9 this section, is amended to read as follows: 

10 ‘‘(g) TERMINATION.— This section shall not apply 

11 to— 

12 ‘‘(1) any qualified clean-fuel vehicle property or 

13 any qualified clean-fuel vehicle refueling property 

14 placed in service after December 31, 2006, or 

15 ‘‘(2) any qualified flexible fuel vehicle placed in 

16 service after December 31, 2010.’’. 

17 (e) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to property placed in service after 

19 the date of the enactment of this Act. 

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