I 

108TH CONGRESS 

1ST SESSION H. R. 2865

To amend the Internal Revenue Code of 1986 to provide a credit for qualified 

clean-fuel vehicles which are used in certain ozone nonattainment areas. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 24, 2003

Mr. CARDOZA (for himself, Mr. DOOLEY of California, and Mr. RADANOVICH) 

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 provide 

a credit for qualified clean-fuel vehicles which are used 

in certain ozone nonattainment areas.

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. 

4 This Act may be cited as the ‘‘Clean Air Incentive 

5 Act of 2003’’. 

6 SEC. 2. CREDIT FOR QUALIFIED OZONE ATTAINMENT VEHI7 CLE PROPERTY. 

8 (a) IN GENERAL.—Subpart B of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 
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1 1986 (relating to other credits) is amended by adding at 

2 the end the following new section: 

3 ‘‘SEC. 30B. CREDIT FOR QUALIFIED OZONE ATTAINMENT 

4 VEHICLE PROPERTY. 

5 ‘‘(a) IN GENERAL.—Under regulations prescribed by 

6 the Secretary, there shall be allowed as a credit against 

7 the tax imposed by this chapter for the taxable year an 

8 amount equal to the cost of any qualified ozone attainment 

9 vehicle property placed in service by the taxpayer during 

10 the taxable year. 

11 ‘‘(b) LIMITATION.—The cost which may be taken into 

12 account under subsection (a) with respect to any vehicle 

13 is—

14 ‘‘(1) in the case of any vehicle not described in 

15 paragraph (2)—

16 ‘‘(A) $2,750 if credit is allowed by reason 

17 of subsection (d)(1), 

18 ‘‘(B) $3,500 if credit is allowed by reason 

19 of subsection (d)(2), and 

20 ‘‘(C) $4,000 if credit is allowed by reason 

21 of subsection (d)(3), 

22 ‘‘(2) in the case of any truck or van with a 

23 gross vehicle weight rating greater than 10,000 

24 pounds—
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1 ‘‘(A) $7,000 if credit is allowed by reason 

2 of subsection (d)(1), 

3 ‘‘(B) $8,500 if credit is allowed by reason 

4 of subsection (d)(2), 

5 ‘‘(C) $10,000 if credit is allowed by reason 

6 of subsection (d)(3). 

7 ‘‘(c) APPLICATION WITH OTHER CREDITS.—The 

8 credit allowed by subsection (a) for any taxable year shall 

9 not exceed the excess (if any) of— 

10 ‘‘(1) the regular tax for the taxable year re11 duced by the sum of the credits allowable under sub12 part A and sections 27, 29, and 30, over 

13 ‘‘(2) the tentative minimum tax for the taxable 

14 year. 

15 ‘‘(d) QUALIFIED OZONE ATTAINMENT VEHICLE

16 PROPERTY.—For purposes of this section, the term ‘quali17 fied ozone attainment vehicle property’ means any quali18 fied clean-fuel vehicle property (as defined in section 

19 179A(c)) if substantially all of the use of such property 

20 is in an area designated by the Administrator of the Envi21 ronmental Protection Agency as—

22 ‘‘(1) a serious ozone nonattainment area, 

23 ‘‘(2) a severe ozone nonattainment area, or 

24 ‘‘(3) an extreme ozone nonattainment area. 

25 ‘‘(e) SPECIAL RULES.—
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1 ‘‘(1) BASIS REDUCTION.—The basis of any 

2 property for which a credit is allowable under sub3 section (a) shall be reduced by the amount of such 

4 credit (determined without regard to subsection (c). 

5 ‘‘(2) RECAPTURE.—The Secretary shall, by reg6 ulations, provide for recapturing the benefit of any 

7 credit allowable under subsection (a) with respect to 

8 any property which ceases to be property eligible for 

9 such credit. 

10 ‘‘(3) PROPERTY USED OUTSIDE UNITED

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

12 allowed under subsection (a) with respect to any 

13 property referred to in section 50(b) or with respect 

14 to the portion of the cost of any property taken into 

15 account under section 179. 

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

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

18 vehicle if the taxpayer elects to not have this section 

19 apply to such vehicle.’’. 

20 (b) COORDINATION WITH DEDUCTION FOR CLEAN21 FUEL VEHICLES.—Subsection (b) of section 179A of such 

22 Code (relating to limitations) is amended by adding at the 

23 end the following new paragraph: 

24 ‘‘(3) COORDINATION WITH CREDIT FOR QUALI25 FIED OZONE ATTAINMENT VEHICLE PROPERTY.—
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1 The cost which may be taken into account under 

2 subsection (a)(1)(A) with respect to any motor vehi3 cle shall not exceed the excess (if any) of—

4 ‘‘(A) the cost which would be so taken into 

5 account without regard to this paragraph, over 

6 ‘‘(B) any credit allowed with respect to 

7 such vehicle under section 30B.’’. 

8 (c) CONFORMING AMENDMENTS.—

9 (1) The table of sections for subpart B of part 

10 IV of subchapter A of chapter 1 of such Code is 

11 amended by adding at the end the following new 

12 item:

‘‘Sec. 30B. Credit for qualified ozone attainment vehicle property.’’.

13 (2) Section 1016(a) of such Code is amended 

14 by striking ‘‘and’’ at the end of paragraph (27), by 

15 striking the period at the end of paragraph (28) and 

16 inserting ‘‘, and’’, and by adding at the end the fol17 lowing new paragraph: 

18 ‘‘(29) to the extent provided in section 

19 30B(e)(1).’’. 

20 (3) Section 53(d)(1)(B)(iii) of such Code is 

21 amended to read as follows: 

22 ‘‘(iii) SPECIAL RULE.—The adjusted 

23 net minimum tax for the taxable year shall 

24 be increased by the sum of—
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1 ‘‘(I) the amount of the credit not 

2 allowed under section 29 (relating to 

3 credit for producing fuel from a non4 conventional source) solely by reason 

5 of the application of section 

6 29(b)(6)(B), 

7 ‘‘(II) the amount of the credit 

8 not allowed under section 30 solely by 

9 reason of the application of section 

10 30(b)(3)(B), and 

11 ‘‘(III) the amount of the credit 

12 not allowed under section 30B solely 

13 by reason of the application of section 

14 30B(c)(2).’’. 

15 (4) Section 55(c)(2) of such Code is amended 

16 by inserting ‘‘30B(c),’’ after ‘‘30(b)(3),’’. 

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

18 this section shall apply to property placed in service after 

19 December 31, 2003.

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