I 

115TH CONGRESS 

1ST SESSION H. R. 2253 

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

relating to the use of clean-fuel and fuel efficient vehicles by businesses 

within areas designated as nonattainment areas under the Clean Air 

Act, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 28, 2017 

Mr. SERRANO 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 business credit relating to the use of clean-fuel and 

fuel efficient vehicles by businesses within areas designated as nonattainment areas under the Clean Air 

Act, and for other purposes. 

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 Vehicles Incen5 tive Act of 2017’’. 


lotter on DSK5VPTVN1PROD with BILLS
2 

•HR 2253 IH

1 SEC. 2. CLEAN-FUEL CREDIT WITH RESPECT TO BUSI2 NESSES LOCATED IN NONATTAINMENT 

3 AREAS. 

4 (a) IN GENERAL.—Subpart D of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to business-related credits) is amended by 

7 adding at the end the following new section: 

8 ‘‘SEC. 45S. CLEAN-FUEL CREDIT WITH RESPECT TO BUSI9 NESSES LOCATED IN NONATTAINMENT 

10 AREAS. 

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

12 the case of an eligible business the clean-fuel credit deter13 mined under this section for the taxable year is the sum 

14 of— 

15 ‘‘(1) the clean-fuel property credit, plus 

16 ‘‘(2) the clean-burning fuel use credit. 

17 ‘‘(b) CLEAN-FUEL PROPERTY CREDIT.— 

18 ‘‘(1) IN GENERAL.—The clean-fuel property 

19 credit is the sum of— 

20 ‘‘(A) qualified vehicle property costs, plus 

21 ‘‘(B) qualified refueling property costs. 

22 ‘‘(2) QUALIFIED VEHICLE PROPERTY COSTS.— 

23 ‘‘(A) IN GENERAL.—For purposes of para24 graph (1), the term ‘qualified vehicle property 

25 costs’ means the amount paid or incurred by 

26 the eligible business for qualified clean-fuel veVerDate Sep 11 2014 01:26 May 05, 2017 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2253.IH H2253

lotter on DSK5VPTVN1PROD with BILLS
3 

•HR 2253 IH

1 hicle property which is placed in service during 

2 the taxable year by the eligible business and 

3 substantially all of the use of which is in a non4 attainment area. 

5 ‘‘(B) LIMITATION.—The amount which 

6 may be taken into account under subparagraph 

7 (A) with respect to any motor vehicle shall not 

8 exceed— 

9 ‘‘(i) $8,000, in the case of a motor ve10 hicle with a gross vehicle weight rating of 

11 not more than 8,500 pounds, 

12 ‘‘(ii) $20,000, in the case of a motor 

13 vehicle with a gross vehicle weight rating 

14 of more than 8,500 pounds but not more 

15 than 14,000 pounds, 

16 ‘‘(iii) $40,000, in the case of a motor 

17 vehicle with a gross vehicle weight rating 

18 of more than 14,000 pounds but not more 

19 than 26,000 pounds, and 

20 ‘‘(iv) $80,000, in the case of a motor 

21 vehicle with a gross vehicle weight rating 

22 of more than 26,000 pounds. 

23 ‘‘(C) QUALIFIED CLEAN-FUEL VEHICLE

24 PROPERTY.—The term ‘qualified clean-fuel ve25 hicle property’ shall have the meaning given to 


lotter on DSK5VPTVN1PROD with BILLS
4 

•HR 2253 IH

1 such term by section 179A(c) (as in effect be2 fore its repeal by Public Law 113–295 and 

3 without regard to paragraphs (1)(A) and (3) 

4 thereof), except that such term does not include 

5 property that is a motor vehicle propelled by a 

6 fuel that is not a clean-burning fuel. 

7 ‘‘(3) QUALIFIED REFUELING PROPERTY

8 COSTS.— 

9 ‘‘(A) IN GENERAL.—For purposes of para10 graph (1), the term ‘qualified refueling property 

11 costs’ means amounts paid or incurred by the 

12 eligible business for qualified clean-fuel vehicle 

13 refueling property (as defined by section 

14 179A(d) (as in effect before its repeal by Public 

15 Law 113–295)) which is placed in service in a 

16 nonattainment area during the taxable year by 

17 the eligible business. 

18 ‘‘(B) LIMITATION.— 

19 ‘‘(i) IN GENERAL.—The aggregate 

20 cost which may be taken into account 

21 under subparagraph (A) with respect to 

22 qualified clean-fuel vehicle refueling prop23 erty placed in service by the eligible busi24 ness during the taxable year at a location 

25 shall not exceed the lesser of— 


lotter on DSK5VPTVN1PROD with BILLS
5 

•HR 2253 IH

1 ‘‘(I) $150,000, or 

2 ‘‘(II) the cost of such property 

3 reduced by the amount described in 

4 clause (ii). 

5 ‘‘(ii) REDUCTION FOR AMOUNTS PRE6 VIOUSLY TAKEN INTO ACCOUNT.—For pur7 poses of clause (i)(II), the amount de8 scribed in this clause is the sum of— 

9 ‘‘(I) the aggregate amount taken 

10 into account under paragraph (1)(B) 

11 for all preceding taxable years, and 

12 ‘‘(II) the aggregate amount taken 

13 into account under section 

14 179A(a)(1)(B) (as in effect before its 

15 repeal by Public Law 113–295) by the 

16 taxpayer (or any related person or 

17 predecessor) with respect to property 

18 placed in service at such location for 

19 all preceding taxable years. 

20 ‘‘(iii) SPECIAL RULES.—For purposes 

21 of this subparagraph, the provisions of 

22 subparagraphs (B) and (C) of section 

23 179A(b)(2) (as in effect before its repeal 

24 by Public Law 113–295) shall apply. 

25 ‘‘(c) CLEAN-BURNING FUEL USE CREDIT.— 


lotter on DSK5VPTVN1PROD with BILLS
6 

•HR 2253 IH

1 ‘‘(1) IN GENERAL.—For purposes of subsection 

2 (a), the clean-burning fuel use credit is the amount 

3 equal to 50 cents for each gasoline gallon equivalent 

4 of clean-burning fuel used by an eligible business 

5 during the taxable year to propel qualified clean-fuel 

6 vehicle property. 

7 ‘‘(2) CLEAN-BURNING FUEL.—For purposes of 

8 paragraph (1), the term ‘clean-burning fuel’ has the 

9 meaning given to such term by section 179A (as in 

10 effect before its repeal by Public Law 113–295), ex11 cept that such term includes compressed natural gas 

12 and biodiesel (as defined by section 40A(d)(1)). 

13 ‘‘(3) GASOLINE GALLON EQUIVALENT.—For 

14 purposes of paragraph (1), the term ‘gasoline gallon 

15 equivalent’ means, with respect to any clean burning 

16 fuel, the amount (determined by the Secretary) of 

17 such fuel having a Btu content of 114,000. 

18 ‘‘(d) OTHER DEFINITIONS.—For purposes of this 

19 section— 

20 ‘‘(1) ELIGIBLE BUSINESS.—The term ‘eligible 

21 business’ means— 

22 ‘‘(A) a qualified business entity or a quali23 fied proprietorship (as such terms are defined 

24 by section 1397C, determined by substituting 

25 ‘nonattainment area’ for ‘empowerment zone’ 


lotter on DSK5VPTVN1PROD with BILLS
7 

•HR 2253 IH

1 and ‘enterprise zone’ each place it appears), 

2 and 

3 ‘‘(B) a trade or business located outside of 

4 a nonattainment area, but only with respect to 

5 qualified clean-fuel vehicle property used sub6 stantially within a nonattainment area. 

7 ‘‘(2) NONATTAINMENT AREA.—The term ‘non8 attainment area’ shall have the meaning given to 

9 such term by section 171 of the Clean Air Act (42 

10 U.S.C. 7501). 

11 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—Except as pro12 vided in section 30B(d)(4), no credit shall be allowed 

13 under subsection (a) for any expense for which a deduction 

14 or credit is allowed under any other provision of this chap15 ter. 

16 ‘‘(f) RECAPTURE.—The Secretary shall, by regula17 tions, provide for recapturing the benefit under any credit 

18 allowable under subsection (a) with respect to any prop19 erty substantially all of the use of which is not in a non20 attainment area.’’. 

21 (b) CREDIT MADE PART OF GENERAL BUSINESS

22 CREDIT.—Subsection (b) of section 38 of such Code (re23 lating to current year business credit) is amended by strik24 ing ‘‘plus’’ at the end of paragraph (35), by striking the 

25 period at the end of paragraph (36) and inserting ‘‘, plus’’, 


lotter on DSK5VPTVN1PROD with BILLS
8 

•HR 2253 IH

1 and by adding at the end thereof the following new para2 graph: 

3 ‘‘(37) the clean-fuel credit determined under 

4 section 45S.’’. 

5 (c) DENIAL OF DOUBLE BENEFIT.—Section 280C of 

6 such Code (relating to certain expenses for which credits 

7 are allowable) is amended by adding at the end thereof 

8 the following new subsection: 

9 ‘‘(j) ZONE CLEAN FUELS EXPENSES.—No deduction 

10 shall be allowed for that portion of expenses for clean11 burning fuel otherwise allowable as a deduction for the 

12 taxable year which is equal to the amount of the credit 

13 determined for such taxable year under section 45S.’’. 

14 (d) CREDIT ALLOWED AGAINST REGULAR AND MIN15 IMUM TAX.—Subparagraph (B) of section 38(c)(4) of 

16 such Code (relating to specified credits) is amended by 

17 striking ‘‘and’’ at the end of clause (x), by striking the 

18 period at the end of clause (xi) and inserting ‘‘, and’’, and 

19 by inserting after clause (xi) the following: 

20 ‘‘(xii) the credit determined under sec21 tion 45S.’’. 

22 (e) DEDUCTION FOR CERTAIN UNUSED BUSINESS

23 CREDITS.—Subsection (c) of section 196 of such Code is 

24 amended by striking ‘‘and’’ at the end of paragraph (13), 

25 by striking the period at the end of paragraph (14) and 


lotter on DSK5VPTVN1PROD with BILLS
9 

•HR 2253 IH

1 inserting ‘‘, and’’, and by adding after paragraph (14) the 

2 following new paragraph: 

3 ‘‘(15) the clean fuels credit determined under 

4 section 45S.’’. 

5 (f) CONFORMING AMENDMENT.—The table of sec6 tions for subpart D of part IV of subchapter A of chapter 

7 1 of such Code is amended by inserting after the item 

8 relating to section 45R the following new item: 

‘‘Sec. 45S. Clean-fuel credit with respect to businesses located in nonattainment 

areas.’’. 

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

10 this section shall apply to property placed in service after 

11 December 31, 2016. 

12 SEC. 3. CREDIT FOR HYBRID VEHICLES PLACED IN SERV13 ICE IN NONATTAINMENT AREAS. 

14 (a) IN GENERAL.—Subsection (d) of section 30B of 

15 the Internal Revenue Code of 1986 is amended by adding 

16 at the end the following new paragraph: 

17 ‘‘(4) VEHICLES PLACED IN SERVICE IN NON18 ATTAINMENT AREA AFTER 2016.— 

19 ‘‘(A) IN GENERAL.—No amount shall be 

20 allowed as a credit determined under this sub21 section for any taxable year beginning after 

22 2016 with respect to a new qualified hybrid 

23 motor vehicle unless such vehicle is placed in 

24 service by an eligible business and substantially 


lotter on DSK5VPTVN1PROD with BILLS
10 

•HR 2253 IH

1 all of the use of which is in a nonattainment 

2 area. 

3 ‘‘(B) RECAPTURE.—The Secretary shall, 

4 by regulations, provide for recapturing the ben5 efit under any credit allowable under subsection 

6 (a) by reason of subparagraph (A) with respect 

7 to any property substantially all of the use of 

8 which is not in a nonattainment area. 

9 ‘‘(C) PHASEOUT NOT TO APPLY.—For pur10 poses of this subsection, subsection (f) shall not 

11 apply. 

12 ‘‘(D) DEFINITIONS.—For purposes of this 

13 subsection, the terms ‘eligible business’ and 

14 ‘nonattainment area’ have the meanings given 

15 such terms by section 45S(d).’’. 

16 (b) EXTENSION OF CREDIT FOR HYBRID VEHICLES

17 PLACED IN SERVICE IN NONATTAINMENT AREAS.—Para18 graph (3) of section 30(k) of such Code is amended to 

19 read as follows: 

20 ‘‘(3) in the case of a new qualified hybrid motor 

21 vehicle (as described in subsection (d)(2)(B))— 

22 ‘‘(A) December 31, 2009, and before Janu23 ary 1, 2017, or 

24 ‘‘(B) December 31, 2016, and before Jan25 uary 1, 2022.’’. 


lotter on DSK5VPTVN1PROD with BILLS
11 

•HR 2253 IH

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

2 this section shall apply to property placed in service after 

3 December 31, 2016. 

Æ 


lotter on DSK5VPTVN1PROD with BILLS