I 

111TH CONGRESS 

1ST SESSION H. R. 1835 

To amend the Internal Revenue Code of 1986 to encourage alternative energy 

investments and job creation. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2009 

Mr. BOREN (for himself, Mr. LARSON of Connecticut, Mr. SULLIVAN, Mr. 

ABERCROMBIE, Mr. BISHOP of Georgia, Mr. BURGESS, Mr. CONAWAY, 

Mr. KAGEN, Mr. MCMAHON, Ms. MARKEY of Colorado, Mr. MILLER of 

Florida, Mr. MINNICK, Mr. TEAGUE, and Mr. THOMPSON of California) 

introduced the following bill; which was referred to the Committee on 

Ways and Means, and in addition to the Committees on Oversight and 

Government Reform and Science and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of 

such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to encourage 

alternative energy investments and job creation. 

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 ‘‘New Alternative Transportation to Give Americans Solu6 tions Act of 2009’’. 


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1 (b) AMENDMENT OF 1986 CODE.—Except as other2 wise expressly provided, whenever in this Act an amend3 ment or repeal is expressed in terms of an amendment 

4 to, or repeal of, a section or other provision, the reference 

5 shall be considered to be made to a section or other provi6 sion of the Internal Revenue Code of 1986. 

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

8 this Act is as follows: 

Sec. 1. Short title, etc. 

TITLE I—PROMOTE THE PURCHASE AND USE OF NGVS WITH AN 

EMPHASIS ON HEAVY DUTY VEHICLES AND FLEET VEHICLES 

Sec. 101. Modification of alternative fuel credit. 

Sec. 102. Extension and modification of alternative fuel vehicle credit. 

Sec. 103. Allowance of vehicle and infrastructure credits against regular and 

minimum tax and transferability of credits. 

Sec. 104. Modification of credit for purchase of vehicles fueled by natural gas 

or liquified natural gas. 

Sec. 105. Modification of definition of new qualified alternative fuel motor vehicle. 

TITLE II—PROMOTE PRODUCTION OF NGVS BY ORIGINAL 

EQUIPMENT MANUFACTURERS 

Sec. 201. Credit for producing vehicles fueled by natural gas or liquified natural gas. 

TITLE III—TO INCENTIVIZE THE INSTALLATION OF NATURAL 

GAS FUEL PUMPS AT SERVICE STATIONS AND DEPOTS AND 

DOMESTIC LNG PRODUCTION FACILITIES FOR SMALL ENERGY 

PRODUCERS 

Sec. 301. Extension and modification of alternative fuel vehicle refueling property credit. 

Sec. 302. Increase in credit for certain alternative fuel vehicle refueling properties. 

TITLE IV—NATURAL GAS VEHICLES 

Sec. 401. Natural gas vehicles in Federal fleet. 

Sec. 402. Grants for natural gas vehicles research and development. 


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1 TITLE I—PROMOTE THE PUR2 CHASE AND USE OF NGVS 

3 WITH AN EMPHASIS ON 

4 HEAVY DUTY VEHICLES AND 

5 FLEET VEHICLES 

6 SEC. 101. MODIFICATION OF ALTERNATIVE FUEL CREDIT. 

7 (a) ALTERNATIVE FUEL CREDIT.—Paragraph (5) of 

8 section 6426(d) (relating to alternative fuel credit) is 

9 amended by inserting ‘‘, and December 31, 2027, in the 

10 case of any sale or use involving compressed or liquefied 

11 natural gas)’’ after ‘‘hydrogen’’. 

12 (b) ALTERNATIVE FUEL MIXTURE CREDIT.—Para13 graph (3) of section 6426(d) is amended by inserting ‘‘, 

14 and December 31, 2027, in the case of any sale or use 

15 involving compressed or liquefied natural gas)’’ after ‘‘hy16 drogen’’. 

17 (c) PAYMENTS RELATING TO ALTERNATIVE FUEL OR

18 ALTERNATIVE FUEL MIXTURES.—Paragraph (6) of sec19 tion 6427(e) is amended— 

20 (1) in subparagraph (C)— 

21 (A) by striking ‘‘subparagraph (D)’’ in 

22 subparagraph (C) and inserting ‘‘subpara23 graphs (D) and (E)’’, and 

24 (B) by striking ‘‘and’’ at the end thereof, 


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1 (2) by striking the period at the end of sub2 paragraph (D) and inserting ‘‘, and’’, 

3 (3) by inserting at the end the following: ‘‘or 

4 with respect to compressed or liquefied natural gas’’ 

5 after ‘‘subparagraph (D)’’. 

6 ‘‘(E) any alternative fuel or alternative fuel 

7 mixture (as so defined) involving compressed or 

8 liquefied natural gas.’’. 

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

10 this section shall apply to fuel sold or used after the date 

11 of the enactment of this Act. 

12 SEC. 102. EXTENSION AND MODIFICATION OF ALTER13 NATIVE FUEL VEHICLE CREDIT. 

14 (a) IN GENERAL.—Paragraph (4) of section 30B(k) 

15 (relating to termination) is amended by inserting ‘‘(De16 cember 31, 2027, in the case of a vehicle powered by com17 pressed or liquefied natural gas)’’ before the period at the 

18 end. 

19 (b) EFFECTIVE DATE.—The amendment made by 

20 subsection (a) shall apply to property placed in service 

21 after the date of the enactment of this Act. 


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1 SEC. 103. ALLOWANCE OF VEHICLE AND INFRASTRUCTURE 

2 CREDITS AGAINST REGULAR AND MINIMUM 

3 TAX AND TRANSFERABILITY OF CREDITS. 

4 (a) BUSINESS CREDITS.—Subparagraph (B) of sec5 tion 38(c)(4) is amended by striking ‘‘and’’ at the end of 

6 clause (vii), by striking the period at the end of clause 

7 (viii) and inserting ‘‘, and’’, and by inserting after clause 

8 (viii) the following new clauses: 

9 ‘‘(ix) the portion of the credit deter10 mined under section 30B which is attrib11 utable to the application of subsection 

12 (e)(3) thereof with respect to qualified al13 ternative fuel motor vehicles which are ca14 pable of being powered by compressed or 

15 liquefied natural gas, and 

16 ‘‘(x) the portion of the credit deter17 mined under section 30C which is attrib18 utable to the application of subsection (b) 

19 thereof with respect to refueling property 

20 which is used to store and or dispense 

21 compressed or liquefied natural gas.’’. 

22 (b) PERSONAL CREDITS.— 

23 (1) NEW QUALIFIED ALTERNATIVE FUEL

24 MOTOR VEHICLES.—Subsection (g) of section 30B is 

25 amended by adding at the end the following new 

26 paragraph: 


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1 ‘‘(3) SPECIAL RULE RELATING TO CERTAIN

2 NEW QUALIFIED ALTERNATIVE FUEL MOTOR VEHI3 CLES.—In the case of the portion of the credit deter4 mined under subsection (a) which is attributable to 

5 the application of subsection (e)(3) with respect to 

6 qualified alternative fuel motor vehicles which are 

7 capable of being powered by compressed or liquefied 

8 natural gas— 

9 ‘‘(A) paragraph (2) shall (after the appli10 cation of paragraph (1)) be applied separately 

11 with respect to such portion, and 

12 ‘‘(B) in lieu of the limitation determined 

13 under paragraph (2), such limitation shall not 

14 exceed the excess (if any) of— 

15 ‘‘(i) the sum of the regular tax liabil16 ity (as defined in section 26(b)) plus the 

17 tentative minimum tax for the taxable 

18 year, reduced by 

19 ‘‘(ii) the sum of the credits allowable 

20 under subpart A and sections 27 and 30.’’. 

21 (2) ALTERNATIVE FUEL VEHICLE REFUELING

22 PROPERTIES.—Subsection (d) of section 30C is 

23 amended by adding at the end the following new 

24 paragraph: 


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1 ‘‘(3) SPECIAL RULE RELATING TO CERTAIN AL2 TERNATIVE FUEL VEHICLE REFUELING PROP3 ERTIES.—In the case of the portion of the credit de4 termined under subsection (a) with respect to refuel5 ing property which is used to store and or dispense 

6 compressed or liquefied natural gas and which is at7 tributable to the application of subsection (b)— 

8 ‘‘(A) paragraph (2) shall (after the appli9 cation of paragraph (1)) be applied separately 

10 with respect to such portion, and 

11 ‘‘(B) in lieu of the limitation determined 

12 under paragraph (2), such limitation shall not 

13 exceed the excess (if any) of— 

14 ‘‘(i) the sum of the regular tax liabil15 ity (as defined in section 26(b)) plus the 

16 tentative minimum tax for the taxable 

17 year, reduced by 

18 ‘‘(ii) the sum of the credits allowable 

19 under subpart A and sections 27, 30, and 

20 the portion of the credit determined under 

21 section 30B which is attributable to the 

22 application of subsection (e)(3) thereof.’’. 

23 (c) CREDITS MAY BE TRANSFERRED.— 


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1 (1) VEHICLE CREDITS.—Subsection (h) of sec2 tion 30B is amended by adding at the end the fol3 lowing new paragraph: 

4 ‘‘(11) TRANSFERABILITY OF CREDIT.—Nothing 

5 in any law or rule of law shall be construed to limit 

6 a taxpayer from transferring, through sale and re7 purchase agreement, the credit allowed by this sec8 tion for qualified alternative fuel motor vehicles 

9 which are capable of being powered by compressed 

10 or liquefied natural gas.’’. 

11 (2) INFRASTRUCTURE CREDIT.—Subsection (e) 

12 of section 30C is amended by adding at the end the 

13 following new paragraph: 

14 ‘‘(6) CREDIT MAY BE TRANSFERRED.—Nothing 

15 in any law or rule of law shall be construed to limit 

16 a taxpayer from transferring the credit allowed by 

17 this section through sale and repurchase agree18 ments.’’. 

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

20 this section shall apply with respect to property placed in 

21 service after the date of the enactment of this Act. 


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1 SEC. 104. MODIFICATION OF CREDIT FOR PURCHASE OF 

2 VEHICLES FUELED BY NATURAL GAS OR 

3 LIQUIFIED NATURAL GAS. 

4 (a) INCREASE IN CREDIT.—Paragraph (2) of section 

5 30B(e) (relating to applicable percentage) is amended to 

6 read as follows: 

7 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

8 of paragraph (1), the applicable percentage with re9 spect to any new qualified alternative fuel motor ve10 hicle is— 

11 ‘‘(A) except as provided in subparagraphs 

12 (B) and (C)— 

13 ‘‘(i) 50 percent, plus 

14 ‘‘(ii) 30 percent, if such vehicle— 

15 ‘‘(I) has received a certificate of 

16 conformity under the Clean Air Act 

17 and meets or exceeds the most strin18 gent standard available for certifi19 cation under the Clean Air Act for 

20 that make and model year vehicle 

21 (other than a zero emission standard), 

22 or 

23 ‘‘(II) has received an order certi24 fying the vehicle as meeting the same 

25 requirements as vehicles which may be 

26 sold or leased in California and meets 


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1 or exceeds the most stringent stand2 ard available for certification under 

3 the State laws of California (enacted 

4 in accordance with a waiver granted 

5 under section 209(b) of the Clean Air 

6 Act) for that make and model year ve7 hicle (other than a zero emission 

8 standard) 

9 ‘‘(B) 80 percent, in the case of vehicles 

10 that are only capable of operating on com11 pressed natural gas or liquefied natural gas, or 

12 mix-fuel vehicles which are capable of operating 

13 on compressed or liquefied natural gas, and 

14 ‘‘(C) 50 percent, in the case of vehicles de15 scribed subsection (e)(4)(A)(i)(II). 

16 For purposes of the preceding sentence, in the case 

17 of any new qualified alternative fuel motor vehicle 

18 which weighs more than 14,000 pounds gross vehicle 

19 weight rating, the most stringent standard available 

20 shall be such standard available for certification on 

21 the date of the enactment of the Energy Tax Incen22 tives Act of 2005.’’. 

23 (b) HIGHER INCREMENTAL COST LIMITS FOR NAT24 URAL GAS VEHICLES.—Subsection (e) of section 30B (re25 lating to new qualified alternative motor vehicle credit) is 


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1 amended by adding at the end the following new para2 graph: 

3 ‘‘(6) HIGHER INCREMENTAL COST LIMITS FOR

4 NATURAL GAS VEHICLES.—In the case of alternative 

5 fueled motor vehicles with respect to vehicles pow6 ered by compressed or liquefied natural gas, para7 graph (3) shall be applied— 

8 ‘‘(A) in subparagraph (A) by substituting 

9 ‘$12,500’ for ‘$5,000’, 

10 ‘‘(B) in subparagraph (B) by substituting 

11 ‘$20,000’ for ‘$10,000’, 

12 ‘‘(C) in subparagraph (C) by substituting 

13 ‘$50,000’ for ‘$25,000’, and 

14 ‘‘(D) in subparagraph (D) by substituting 

15 ‘$80,000’ for ‘$40,000’.’’. 

16 (c) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to property placed in service after 

18 the date of the enactment of this Act. 

19 SEC. 105. MODIFICATION OF DEFINITION OF NEW QUALI20 FIED ALTERNATIVE FUEL MOTOR VEHICLE. 

21 (a) IN GENERAL.—Clause (i) of section 30B(e)(4)(A) 

22 (relating to definition of new qualified alternative fuel 

23 motor vehicle) is amended to read as follows: 

24 ‘‘(i) which— 


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1 ‘‘(I) is only capable of operating 

2 on an alternative fuel, or 

3 ‘‘(II) is capable of operating on 

4 compressed or liquefied natural gas 

5 and (but not in combination with) 

6 gasoline or diesel fuel, but in no case 

7 shall such vehicle have an operating 

8 range of less than 200 miles on com9 pressed or liquefied natural gas.’’. 

10 (b) CONVERSIONS AND REPOWERS.—Paragraph (4) 

11 of section 30B(e) is amended by adding at the end the 

12 following new subparagraph: 

13 ‘‘(C) CONVERSIONS AND REPOWERS.— 

14 ‘‘(i) IN GENERAL.—The term ‘new 

15 qualified alternative fuel vehicle’ includes 

16 the conversion or repower of a new or used 

17 vehicle so that it is capable of operating on 

18 a qualified alternative fuel as it was not 

19 previously capable of operating on an alter20 native fuel. 

21 ‘‘(ii) TREATMENT AS NEW.—A vehicle 

22 which has been converted to operate on al23 ternative fuel shall be treated as new on 

24 the date of such conversion for purposes of 

25 this section. 


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1 ‘‘(iii) RULE OF CONSTRUCTION.—In 

2 the case of a used vehicle which is con3 verted or repowered, nothing in this section 

4 shall be construed to require that the 

5 motor vehicle be acquired in the year the 

6 credit is claimed under this section with re7 spect to such vehicle.’’. 

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

9 this section shall apply to property placed in service after 

10 the date of the enactment of this Act. 

11 TITLE II—PROMOTE PRODUC12 TION OF NGVS BY ORIGINAL 

13 EQUIPMENT MANUFACTUR14 ERS 

15 SEC. 201. CREDIT FOR PRODUCING VEHICLES FUELED BY 

16 NATURAL GAS OR LIQUIFIED NATURAL GAS. 

17 (a) IN GENERAL.—Subpart D of part IV of sub18 chapter A of chapter 1 (relating to business-related cred19 its) is amended by inserting after section 45Q the fol20 lowing new section: 

21 ‘‘SEC. 45R. PRODUCTION OF VEHICLES FUELED BY NAT22 URAL GAS OR LIQUIFIED NATURAL GAS. 

23 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

24 the case of a taxpayer who is a manufacturer of natural 

25 gas vehicles, the natural gas vehicle credit determined 


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1 under this section for any taxable year with respect to 

2 each eligible natural gas vehicle produced by the taxpayer 

3 during such year is an amount equal to the lesser of— 

4 ‘‘(1) 10 percent of the manufacturer’s basis in 

5 such vehicle, or 

6 ‘‘(2) $4,000. 

7 ‘‘(b) AGGREGATE CREDIT ALLOWED.—The aggre8 gate amount of credit allowed under subsection (a) with 

9 respect to a taxpayer for any taxable year shall not exceed 

10 $200,000,000 reduced by the amount of the credit allowed 

11 under subsection (a) to the taxpayer (or any predecessor) 

12 for all prior taxable years. 

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

14 ‘‘(1) ELIGIBLE NATURAL GAS VEHICLE.—The 

15 term ‘eligible natural gas vehicle’ means any motor 

16 vehicle (as defined in section 30(c)(2))— 

17 ‘‘(A) which— 

18 ‘‘(i) is only capable of operating on 

19 natural gas or liquefied natural gas, or 

20 ‘‘(ii) is capable of operating on com21 pressed or liquefied natural gas and (but 

22 not in combination with) gasoline or diesel 

23 fuel, but in no case shall such vehicle have 

24 an operating range of less than 200 miles 


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1 on compressed or liquefied natural gas, 

2 and 

3 ‘‘(B) the final assembly of which is in the 

4 United States. 

5 ‘‘(2) MANUFACTURER.—The term ‘manufac6 turer’ has the meaning given such term in regula7 tions prescribed by the Administrator of the Envi8 ronmental Protection Agency for purposes of the ad9 ministration of title II of the Clean Air Act (42 

10 U.S.C. 7521 et seq.). 

11 ‘‘(d) SPECIAL RULES.—For purposes of this sec12 tion— 

13 ‘‘(1) IN GENERAL.—Rules similar to the rules 

14 of subsections (c), (d), and (e) of section 52 shall 

15 apply. 

16 ‘‘(2) CONTROLLED GROUPS.— 

17 ‘‘(A) IN GENERAL.—All persons treated as 

18 a single employer under subsection (a) or (b) of 

19 section 52 or subsection (m) or (o) of section 

20 414 shall be treated as a single producer. 

21 ‘‘(B) INCLUSION OF FOREIGN CORPORA22 TIONS.—For purposes of subparagraph (A), in 

23 applying subsections (a) and (b) of section 52 

24 to this section, section 1563 shall be applied 

25 without regard to subsection (b)(2)(C) thereof. 


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1 ‘‘(3) VERIFICATION.—No amount shall be al2 lowed as a credit under subsection (a) with respect 

3 to which the taxpayer has not submitted such infor4 mation or certification as the Secretary, in consulta5 tion with the Secretary of Energy, determines nec6 essary. 

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

8 any vehicle produced after December 31, 2017.’’. 

9 (b) CREDIT TO BE PART OF BUSINESS CREDIT.— 

10 Section 38(b) is amended by striking ‘‘plus’’ at the end 

11 of paragraph (34), by striking the period at the end of 

12 paragraph (35) and inserting ‘‘, plus’’, and by adding at 

13 the end the following: 

14 ‘‘(36) the natural gas vehicle credit determined 

15 under section 45R(a).’’. 

16 (c) CONFORMING AMENDMENT.—The table of sec17 tions for subpart D of part IV of subchapter A of chapter 

18 1 is amended by inserting after the item relating to section 

19 45Q the following new item: 

‘‘Sec. 45R. Production of vehicles fueled by natural gas or liquified natural 

gas.’’. 

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

21 this section shall apply to vehicles produced after Decem22 ber 31, 2008. 


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1 TITLE III—TO INCENTIVIZE THE 

2 INSTALLATION OF NATURAL 

3 GAS FUEL PUMPS AT SERVICE 

4 STATIONS AND DEPOTS AND 

5 DOMESTIC LNG PRODUCTION 

6 FACILITIES FOR SMALL EN7 ERGY PRODUCERS 

8 SEC. 301. EXTENSION AND MODIFICATION OF ALTER9 NATIVE FUEL VEHICLE REFUELING PROP10 ERTY CREDIT. 

11 (a) IN GENERAL.—Subsection (g) of section 30C is 

12 amended by striking ‘‘and’’ at the end of paragraph (1), 

13 by redesignating paragraph (2) as paragraph (3), and by 

14 inserting after paragraph (1) the following new paragraph: 

15 ‘‘(2) in the case of property relating to com16 pressed or liquefied natural gas, after December 31, 

17 2027.’’. 

18 (b) EFFECTIVE DATE.—The amendments made by 

19 subsection (a) shall apply to property placed in service 

20 after the date of the enactment of this Act. 

21 SEC. 302. INCREASE IN CREDIT FOR CERTAIN ALTER22 NATIVE FUEL VEHICLE REFUELING PROP23 ERTIES. 

24 (a) IN GENERAL.—Subsection (b) of section 30C is 

25 amended to read as follows: 


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1 ‘‘(b) LIMITATION.—The credit allowed under sub2 section (a) with respect to all qualified alternative fuel ve3 hicle refueling property placed in service by the taxpayer 

4 during the taxable year at a location shall not exceed— 

5 ‘‘(1) except as provided in paragraph (2), 

6 $30,000 in the case of a property of a character 

7 subject to an allowance for depreciation, 

8 ‘‘(2) in the case of a compressed natural gas, 

9 or liquefied natural gas, the lesser of— 

10 ‘‘(A) 50 percent of such cost, or 

11 ‘‘(B) $100,000, and 

12 ‘‘(3) $2,000 in any other case.’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 subsection (a) shall apply to property placed in service 

15 after the date of the enactment of this Act. 

16 TITLE IV—NATURAL GAS 

17 VEHICLES 

18 SEC. 401. NATURAL GAS VEHICLES IN FEDERAL FLEET. 

19 Not later than December 31, 2014, and thereafter, 

20 at least 50 percent of all new vehicles purchased or placed 

21 into service by the United States Government shall be ve22 hicles that are capable of operating on compressed or liq23 uefied natural gas. 


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1 SEC. 402. GRANTS FOR NATURAL GAS VEHICLES RESEARCH 

2 AND DEVELOPMENT. 

3 (a) IN GENERAL.—The Secretary of Energy may 

4 make grants to original equipment manufacturers of light 

5 duty and heavy duty natural gas vehicles for the develop6 ment of engines that reduce emissions, improve perform7 ance and efficiency, and lower cost. 

8 (b) LIMITATION.—The aggregate amount of grants 

9 under subsection (a) for any fiscal year shall not exceed 

10 $30,000,000. 

Æ 


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