II 

111TH CONGRESS 

1ST SESSION S. 1408 

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

investments and job creation. 

IN THE SENATE OF THE UNITED STATES 

JULY 8, 2009 

Mr. MENENDEZ (for himself, Mr. REID, and Mr. HATCH) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

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’’. 

7 (b) AMENDMENT OF 1986 CODE.—Except as other8 wise expressly provided, whenever in this Act an amend9 ment or repeal is expressed in terms of an amendment 

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


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1 shall be considered to be made to a section or other provi2 sion 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. 

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 new qualified alternative fuel motor vehicle credit. 

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

minimum tax and transferability of credits. 

Sec. 104. Natural gas vehicle bonds. 

Sec. 105. Modification of credit for purchase of vehicles fueled by compressed 

natural gas or liquified natural gas. 

Sec. 106. Modification of definition of new qualified alternative fuel motor vehicle. 

TITLE II—PROMOTE PRODUCTION OF NGVS BY ORIGINAL 

EQUIPMENT MANUFACTURERS 

Sec. 201. Incentives for manufacturing facilities producing vehicles fueled by 

compressed or liquified natural gas. 

TITLE III—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. 

Sec. 403. Sense of the Senate on EPA certification of NGV retrofit kits. 


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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, 2019, 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, 2019, 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’’, and 

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

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

5 mixture (as so defined) involving compressed or 

6 liquefied natural gas sold or used after Decem7 ber 31, 2019.’’. 

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

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

10 of the enactment of this Act. 

11 SEC. 102. EXTENSION AND MODIFICATION OF NEW QUALI12 FIED ALTERNATIVE FUEL MOTOR VEHICLE 

13 CREDIT. 

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

15 (relating to termination) is amended by inserting ‘‘(De16 cember 31, 2019, 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 new qualified 

13 alternative fuel motor vehicles which are 

14 capable 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 new qualified alternative fuel motor vehicles which 

7 are capable of being powered by compressed or liq8 uefied 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.— 

5 ‘‘(A) IN GENERAL.—Except as provided in 

6 subparagraph (B), a taxpayer who places in 

7 service any new qualified alternative fuel motor 

8 vehicle which is capable of being powered by 

9 compressed or liquefied natural gas may trans10 fer the credit allowed under this section by rea11 son of subsection (e) with respect to such vehi12 cle through an assignment to the seller or lessor 

13 of such vehicle. Such transfer may be revoked 

14 only with the consent of the Secretary. 

15 ‘‘(B) DENIAL OF DOUBLE BENEFIT.—No 

16 assignment of a credit allowed under this sec17 tion by reason of subsection (e) with respect to 

18 any new qualified alternative fuel motor vehicle 

19 which is capable of being powered by com20 pressed or liquefied natural gas may be made 

21 under subparagraph (A) to a taxpayer who has 

22 claimed a credit under section 54G with respect 

23 to the financing of such vehicle. 

24 ‘‘(C) REGULATIONS.—The Secretary shall 

25 prescribe such regulations as necessary to enVerDate Nov 24 2008 23:38 Jul 08, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1408.IS S1408

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1 sure that any credit transferred under subpara2 graph (A) is claimed once and not reassigned 

3 by such other person.’’. 

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

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

6 following new paragraph: 

7 ‘‘(7) TRANSFERABILITY OF CREDIT.— 

8 ‘‘(A) IN GENERAL.—Except as provided in 

9 subparagraph (B), a taxpayer who places in 

10 service any qualified alternative fuel vehicle re11 fueling property relating to compressed or lique12 fied natural gas may transfer the credit allowed 

13 under this section with respect to such property 

14 through an assignment to the seller or lessor of 

15 such property. Such transfer may be revoked 

16 only with the consent of the Secretary. 

17 ‘‘(B) DENIAL OF DOUBLE BENEFIT.—No 

18 assignment of a credit allowed under this sec19 tion by reason of subsection (e) with respect to 

20 any qualified alternative fuel vehicle refueling 

21 property relating to compressed or liquefied 

22 natural gas may be made under subparagraph 

23 (A) to a taxpayer who has claimed a credit 

24 under section 54G with respect to the financing 

25 of such property. 


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1 ‘‘(C) REGULATIONS.—The Secretary shall 

2 prescribe such regulations as necessary to en3 sure that any credit transferred under subpara4 graph (A) is claimed once and not reassigned 

5 by such other person.’’. 

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

7 this section shall apply with respect to property placed in 

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

9 SEC. 104. NATURAL GAS VEHICLE BONDS. 

10 (a) IN GENERAL.—Subpart I of part IV of sub11 chapter A of chapter 1 (relating to qualified tax credit 

12 bonds) is amended by adding at the end the following new 

13 section: 

14 ‘‘SEC. 54G. NATURAL GAS VEHICLE BONDS. 

15 ‘‘(a) NATURAL GAS VEHICLE BOND.—For purposes 

16 of this subpart, the term ‘natural gas vehicle bond’ means 

17 any bond issued as part of an issue if— 

18 ‘‘(1) 100 percent of the available project pro19 ceeds of such issue are to be used for capital expend20 itures incurred by a governmental body for 1 or 

21 more qualified natural gas vehicle projects placed in 

22 service by such governmental body primarily for gov23 ernmental or public use, 

24 ‘‘(2) the bond is issued by a governmental body, 


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1 ‘‘(3) the issuer designates such bond for pur2 poses of this section, and 

3 ‘‘(4) in lieu of the requirements of section 

4 54A(d)(2), the issue meets the requirements of sub5 section (c). 

6 ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES7 IGNATED.— 

8 ‘‘(1) IN GENERAL.—The maximum aggregate 

9 face amount of bonds which may be designated 

10 under subsection (a) by any issuer shall not exceed 

11 the limitation amount allocated under this sub12 section to such issuer. 

13 ‘‘(2) NATIONAL LIMITATION ON AMOUNT OF

14 BONDS DESIGNATED.—There is a national natural 

15 gas vehicle bond limitation of $3,000,000,000. 

16 ‘‘(3) ALLOCATION BY SECRETARY.—The Sec17 retary shall allocate the amount described in para18 graph (2) among qualified natural gas vehicle 

19 projects in such manner as the Secretary determines 

20 appropriate. 

21 ‘‘(c) SPECIAL RULES RELATING TO EXPENDI22 TURES.— 

23 ‘‘(1) IN GENERAL.—An issue shall be treated as 

24 meeting the requirements of this subsection if, as of 

25 the date of issuance, the issuer reasonably expects— 


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1 ‘‘(A) 100 percent or more of the available 

2 project proceeds of such issue are to be spent 

3 for 1 or more qualified natural gas vehicle 

4 projects within the 5-year period beginning on 

5 the date of issuance of the natural gas vehicle 

6 bond, 

7 ‘‘(B) a binding commitment with a third 

8 party to spend at least 10 percent of such avail9 able project proceeds will be incurred within the 

10 6-month period beginning on the date of 

11 issuance of the natural gas vehicle bond, and 

12 ‘‘(C) such projects will be completed with 

13 due diligence and such available project pro14 ceeds will be spent with due diligence. 

15 ‘‘(2) EXTENSION OF PERIOD.—Upon submis16 sion of a request prior to the expiration of the period 

17 described in paragraph (1)(A), the Secretary may 

18 extend such period if the issuer establishes that the 

19 failure to satisfy the 5-year requirement is due to 

20 reasonable cause and the related projects will con21 tinue to proceed with due diligence. 

22 ‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT

23 OF BOND PROCEEDS WITHIN 5 YEARS.—To the ex24 tent that less than 100 percent of the available 

25 project proceeds of such issue are expended by the 


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1 close of the 5-year period beginning on the date of 

2 issuance (or if an extension has been obtained under 

3 paragraph (2), by the close of the extended period), 

4 the issuer shall redeem all of the nonqualified bonds 

5 within 90 days after the end of such period. For 

6 purposes of this paragraph, the amount of the non7 qualified bonds required to be redeemed shall be de8 termined in the same manner as under section 142. 

9 ‘‘(d) GOVERNMENTAL BODY.—For purposes of this 

10 section, the term ‘governmental body’ means any State or 

11 Indian tribal government, or any political subdivision 

12 thereof. 

13 ‘‘(e) QUALIFIED NATURAL GAS VEHICLE

14 PROJECT.—For purposes of this subpart, the term ‘quali15 fied natural gas vehicle project’ means— 

16 ‘‘(1) 1 or more new qualified alternative fuel 

17 motor vehicles which are capable of being powered 

18 by compressed or liquefied natural gas (within the 

19 meaning of section 30B(e)(4)), or 

20 ‘‘(2) 1 or more qualified alternative fuel vehicle 

21 refueling properties which are used to store and or 

22 dispense compressed or liquefied natural gas (within 

23 the meaning of section 30C(c)). 


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1 ‘‘(f) TERMINATION.—This section shall not apply 

2 with respect to any bond issued after December 31, 

3 2019.’’. 

4 (b) CONFORMING AMENDMENTS.— 

5 (1) Paragraph (1) of section 54A(d) is amended 

6 by striking ‘‘or’’ at the end of subparagraph (D), by 

7 inserting ‘‘or’’ at the end of subparagraph (E), and 

8 by inserting after subparagraph (E) the following 

9 new subparagraph: 

10 ‘‘(F) a natural gas vehicle bond,’’. 

11 (2) Subparagraph (C) of section 54A(d)(2) is 

12 amended by striking ‘‘and’’ at the end of clause (iv), 

13 by striking the period at the end of clause (v) and 

14 inserting ‘‘, and’’, and by adding at the end the fol15 lowing new clause: 

16 ‘‘(vi) in the case of a natural gas vehi17 cle bond, a purpose specified in section 

18 54G(a)(1).’’. 

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

20 for subpart I of part IV of subchapter A of chapter 1 is 

21 amended by adding at the end the following new item: 

‘‘Sec. 54G. Natural gas vehicle bonds.’’. 

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

23 this section shall apply to bonds issued after the date of 

24 the enactment of this Act. 


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1 SEC. 105. MODIFICATION OF CREDIT FOR PURCHASE OF 

2 VEHICLES FUELED BY COMPRESSED NAT3 URAL GAS OR 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 fuel motor vehicle credVerDate Nov 24 2008 23:38 Jul 08, 2009 Jkt 079200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S1408.IS S1408

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1 it) is amended by adding at the end the following new 

2 paragraph: 

3 ‘‘(6) HIGHER INCREMENTAL COST LIMITS FOR

4 NATURAL GAS VEHICLES.—In the case of new quali5 fied alternative fuel motor vehicles with respect to 

6 vehicles powered by compressed or liquefied natural 

7 gas, paragraph (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. 106. 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 gasoline or diesel fuel, but in no 

6 case shall such vehicle have an oper7 ating range of less than 200 miles on 

8 compressed or liquefied natural gas.’’. 

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

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

11 following new subparagraph: 

12 ‘‘(C) CONVERSIONS AND REPOWERS.— 

13 ‘‘(i) IN GENERAL.—The term ‘new 

14 qualified alternative fuel motor vehicle’ in15 cludes the conversion or repower of a new 

16 or used vehicle so that it is capable of op17 erating on an alternative fuel as it was not 

18 previously capable of operating on an alter19 native fuel. 

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

21 which has been converted to operate on an 

22 alternative fuel shall be treated as new on 

23 the date of such conversion for purposes of 

24 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. INCENTIVES FOR MANUFACTURING FACILITIES 

16 PRODUCING VEHICLES FUELED BY COM17 PRESSED OR LIQUIFIED NATURAL GAS. 

18 (a) DEDUCTION FOR MANUFACTURING FACILI19 TIES.—Part VI of subchapter B of chapter 1 of the Inter20 nal Revenue Code of 1986 (relating to itemized deductions 

21 for individuals and corporations) is amended by inserting 

22 after section 179E the following new section: 


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1 ‘‘SEC. 179F. EXPENSING FOR MANUFACTURING FACILITIES 

2 PRODUCING VEHICLES FUELED BY COM3 PRESSED NATURAL GAS OR LIQUIFIED NAT4 URAL GAS. 

5 ‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 

6 elect to treat the applicable percentage of the cost of any 

7 qualified natural gas vehicle manufacturing facility prop8 erty as an expense which is not chargeable to a capital 

9 account. Any cost so treated shall be allowed as a deduc10 tion for the taxable year in which the qualified manufac11 turing facility property is placed in service. 

12 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

13 subsection (a), the applicable percentage is— 

14 ‘‘(1) 100 percent, in the case of qualified nat15 ural gas vehicle manufacturing facility property 

16 which is placed in service before January 1, 2015, 

17 and 

18 ‘‘(2) 50 percent, in the case of qualified natural 

19 gas vehicle manufacturing facility property which is 

20 placed in service after December 31, 2014, and be21 fore January 1, 2020. 

22 ‘‘(c) ELECTION.— 

23 ‘‘(1) IN GENERAL.—An election under this sec24 tion for any taxable year shall be made on the tax25 payer’s return of the tax imposed by this chapter for 

26 the taxable year. Such election shall be made in such 


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1 manner as the Secretary may by regulations pre2 scribe. 

3 ‘‘(2) ELECTION IRREVOCABLE.—Any election 

4 made under this section may not be revoked except 

5 with the consent of the Secretary. 

6 ‘‘(d) QUALIFIED NATURAL GAS VEHICLE MANUFAC7 TURING FACILITY PROPERTY.—For purposes of this sec8 tion— 

9 ‘‘(1) IN GENERAL.—The term ‘qualified natural 

10 gas vehicle manufacturing facility property’ means 

11 any qualified property— 

12 ‘‘(A) the original use of which commences 

13 with the taxpayer, 

14 ‘‘(B) which is placed in service by the tax15 payer after the date of the enactment of this 

16 section and before January 1, 2020, and 

17 ‘‘(C) no written binding contract for the 

18 construction of which was in effect on or before 

19 the date of the enactment of this section. 

20 ‘‘(2) QUALIFIED PROPERTY.— 

21 ‘‘(A) IN GENERAL.—The term ‘qualified 

22 property’ means any property which is a facility 

23 or a portion of a facility used for the production 

24 of— 


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1 ‘‘(i) any new qualified alternative fuel 

2 motor vehicle which is capable of being 

3 powered by compressed or liquefied natural 

4 gas (within the meaning of section 

5 30B(e)(4)), or 

6 ‘‘(ii) any eligible component. 

7 ‘‘(B) ELIGIBLE COMPONENT.—The term 

8 ‘eligible component’ means any component 

9 which is designed specifically for use in such a 

10 new qualified alternative fuel motor vehicle. 

11 ‘‘(e) SPECIAL RULE FOR DUAL USE PROPERTY.— 

12 ‘‘(1) IN GENERAL.—In the case of any qualified 

13 natural gas vehicle manufacturing facility property 

14 which is used to produce both property described in 

15 clauses (i) and (ii) of subsection (d)(2)(A) and prop16 erty which is not so described, the amount of costs 

17 taken into account under subsection (a) shall be re18 duced by an amount equal to— 

19 ‘‘(A) the total amount of such costs (deter20 mined before the application of this subsection), 

21 multiplied by 

22 ‘‘(B) the percentage of property expected 

23 to be produced which is not so described. 


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1 ‘‘(2) REGULATIONS.—The Secretary shall pre2 scribe such regulations as are necessary to carry out 

3 the purpose of this subsection.’’. 

4 (b) REFUND OF CREDIT FOR PRIOR YEAR MINIMUM

5 TAX LIABILITY.—Section 53 (relating to credit for prior 

6 year minimum tax liability) is amended by adding at the 

7 end the following new subsection: 

8 ‘‘(g) ELECTION TO TREAT AMOUNTS ATTRIBUTABLE

9 TO QUALIFIED MANUFACTURING FACILITY.— 

10 ‘‘(1) IN GENERAL.—In the case of an eligible 

11 taxpayer, the amount determined under subsection 

12 (c) for the taxable year (after the application of sub13 section (e)) shall be increased by an amount equal 

14 to the applicable percentage of any qualified natural 

15 gas vehicle manufacturing facility property which is 

16 placed in service during the taxable year. 

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

18 of paragraph (1), the applicable percentage is— 

19 ‘‘(A) 35 percent, in the case of qualified 

20 natural gas vehicle manufacturing facility prop21 erty which is placed in service before January 

22 1, 2015, and 

23 ‘‘(B) 17.5 percent, in the case of qualified 

24 natural gas vehicle manufacturing facility propVerDate Nov 24 2008 23:38 Jul 08, 2009 Jkt 079200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S1408.IS S1408

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1 erty which is placed in service after December 

2 31, 2014, and before January 1, 2020. 

3 ‘‘(3) ELIGIBLE TAXPAYER.—For purposes of 

4 this subsection, the term ‘eligible taxpayer’ means 

5 any taxpayer— 

6 ‘‘(A) who places in service qualified natural 

7 gas vehicle manufacturing facility property dur8 ing the taxable year, 

9 ‘‘(B) who does not make an election under 

10 section 179F(c), and 

11 ‘‘(C) who makes an election under this 

12 subsection. 

13 ‘‘(4) OTHER DEFINITIONS AND SPECIAL

14 RULES.— 

15 ‘‘(A) QUALIFIED NATURAL GAS VEHICLE

16 MANUFACTURING FACILITY PROPERTY.—The 

17 term ‘qualified natural gas vehicle manufac18 turing facility property’ has the meaning given 

19 such term under section 179F(d). 

20 ‘‘(B) SPECIAL RULE FOR DUAL USE PROP21 ERTY.—In the case of any qualified natural gas 

22 vehicle manufacturing facility property which is 

23 used to produce both qualified property (as de24 fined in section 179F(d)) and other property 

25 which is not qualified property, the amount of 


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1 costs taken into account under paragraph (1) 

2 shall be reduced by an amount equal to— 

3 ‘‘(i) the total amount of such costs 

4 (determined before the application of this 

5 subparagraph), multiplied by 

6 ‘‘(ii) the percentage of property ex7 pected to be produced which is not quali8 fied property. 

9 ‘‘(C) ELECTION.— 

10 ‘‘(i) IN GENERAL.—An election under 

11 this subsection for any taxable year shall 

12 be made on the taxpayer’s return of the 

13 tax imposed by this chapter for the taxable 

14 year. Such election shall be made in such 

15 manner as the Secretary may by regula16 tions prescribe. 

17 ‘‘(ii) ELECTION IRREVOCABLE.—Any 

18 election made under this subsection may 

19 not be revoked except with the consent of 

20 the Secretary. 

21 ‘‘(5) CREDIT REFUNDABLE.—For purposes of 

22 this title (other than this section), the credit allowed 

23 by reason of this subsection shall be treated as if it 

24 were allowed under subpart C.’’. 


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

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

4 TITLE III—INCENTIVIZE THE IN5 STALLATION OF NATURAL 

6 GAS FUEL PUMPS AT SERVICE 

7 STATIONS AND DEPOTS AND 

8 DOMESTIC LNG PRODUCTION 

9 FACILITIES FOR SMALL EN10 ERGY PRODUCERS 

11 SEC. 301. EXTENSION AND MODIFICATION OF ALTER12 NATIVE FUEL VEHICLE REFUELING PROP13 ERTY CREDIT. 

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

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

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

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

18 ‘‘(2) in the case of property relating to com19 pressed or liquefied natural gas, after December 31, 

20 2019, and’’. 

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

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

23 after the date of the enactment of this Act. 


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1 SEC. 302. INCREASE IN CREDIT FOR CERTAIN ALTER2 NATIVE FUEL VEHICLE REFUELING PROP3 ERTIES. 

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

5 amended to read as follows: 

6 ‘‘(b) LIMITATION.—The credit allowed under sub7 section (a) with respect to all qualified alternative fuel ve8 hicle refueling property placed in service by the taxpayer 

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

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

11 $30,000 in the case of a property of a character 

12 subject to an allowance for depreciation, 

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

14 or liquefied natural gas, the lesser of— 

15 ‘‘(A) 50 percent of such cost, or 

16 ‘‘(B) $100,000, and 

17 ‘‘(3) $2,000 in any other case.’’. 

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

19 this section shall apply to property placed in service in 

20 taxable years beginning after December 31, 2010. 

21 TITLE IV—NATURAL GAS 

22 VEHICLES 

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

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1 less the agency can show that alternative fuel is unavail2 able or purchasing such vehicles would be impractical. 

3 SEC. 402. GRANTS FOR NATURAL GAS VEHICLES RESEARCH 

4 AND DEVELOPMENT. 

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

6 make grants to original equipment manufacturers of light 

7 duty and heavy duty natural gas vehicles for the develop8 ment of engines that reduce emissions, improve perform9 ance and efficiency, and lower cost. 

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

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

12 $30,000,000. 

13 SEC. 403. SENSE OF THE SENATE ON EPA CERTIFICATION 

14 OF NGV RETROFIT KITS. 

15 It is the sense of the Senate that the Environmental 

16 Protection Agency should streamline the process for cer17 tification of natural gas vehicle retrofit kits to promote 

18 energy security while still fulfilling the mission of the 

19 Clean Air Act. 

Æ 


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