II 

110TH CONGRESS 

2D SESSION S. 3506 

To amend the Internal Revenue Code of 1986 to increase the credit for 

purchase of vehicles fueled by natural gas or liquefied natural gas and 

to amend the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users to reauthorize the Clean School Bus 

Program of the Environmental Protection Agency. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 17, 2008 

Mr. REID (for Mr. OBAMA) 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 increase 

the credit for purchase of vehicles fueled by natural 

gas or liquefied natural gas and to amend the Safe, 

Accountable, Flexible, Efficient Transportation Equity 

Act: A Legacy for Users to reauthorize the Clean School 

Bus Program of the Environmental Protection Agency. 

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


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•S 3506 IS

1 SECTION 1. INCREASED CREDIT FOR PURCHASE OF VEHI2 CLES FUELED BY NATURAL GAS OR 

3 LIQUIFIED NATURAL GAS; EXTENSION OF 

4 CREDIT. 

5 (a) IN GENERAL.—Subsection (e) of section 30B of 

6 the Internal Revenue Code of 1986 (relating to new quali7 fied alternative motor vehicle credit) is amended by adding 

8 at the end the following new paragraph: 

9 ‘‘(6) INCREASED CREDIT FOR NATURAL GAS VE10 HICLES.— 

11 ‘‘(A) INCREASED CREDIT PERCENTAGE.— 

12 In the case of any natural gas vehicle, the ap13 plicable percentage under paragraph (2) shall 

14 be 100 percent. 

15 ‘‘(B) HIGHER INCREMENTAL COST LIMITS

16 FOR FLEET PURCHASERS.—In the case of a 

17 taxpayer who places in service 100 or more nat18 ural gas vehicles during the taxable year, para19 graph (3) shall be applied for such year by dou20 bling the amounts contained in such paragraph. 

21 ‘‘(C) NATURAL GAS VEHICLE.—For pur22 poses of this paragraph, the term ‘natural gas 

23 vehicle’ means any new qualified alternative fuel 

24 motor vehicle fueled by natural gas or liquified 

25 natural gas.’’. 


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•S 3506 IS

1 (b) EXTENSION OF CREDIT FOR ALL NEW QUALI2 FIED ALTERNATIVE FUEL VEHICLES THROUGH 2017.— 

3 Paragraph (4) of section 30B(j) of such Code is amended 

4 by striking ‘‘December 31, 2010’’ and inserting ‘‘Decem5 ber 31, 2017’’. 

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

7 this section shall apply to vehicles placed in service after 

8 December 31, 2008, in taxable years ending after such 

9 date. 

10 SEC. 2. CLEAN SCHOOL BUS PROGRAM. 

11 (a) IN GENERAL.—Section 6015 of the Safe, Ac12 countable, Flexible, Efficient Transportation Equity Act: 

13 A Legacy for Users (42 U.S.C. 16091a) is amended— 

14 (1) in subsection (b)(5)— 

15 (A) in subparagraph (A)— 

16 (i) in the subparagraph heading, by 

17 striking ‘‘50’’ and inserting ‘‘75’’; and 

18 (ii) in the matter preceding clause (i), 

19 by striking ‘‘one-half’’ and inserting ‘‘75 

20 percent’’; and 

21 (B) in subparagraph (B)— 

22 (i) in the subparagraph heading, by 

23 striking ‘‘25’’ and inserting ‘‘50’’; and 


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•S 3506 IS

1 (ii) in the matter preceding clause (i), 

2 by striking ‘‘one-fourth’’ and inserting ‘‘50 

3 percent’’; and 

4 (2) in subsection (d)— 

5 (A) in paragraph (1), by striking ‘‘and’’ at 

6 the end; 

7 (B) in paragraph (2), by striking ‘‘2008, 

8 2009, and 2010.’’ and inserting ‘‘2008 and 

9 2009; and’’; and 

10 (C) by adding at the end the following: 

11 ‘‘(3) $110,000,000 for each of fiscal years 2010 

12 through 2015.’’. 

13 (b) TECHNICAL CORRECTION.—Section 741 of the 

14 Energy Policy Act of 2005 (42 U.S.C. 16091) is repealed. 

15 SEC. 3. NATURAL GAS VEHICLES IN FEDERAL FLEET. 

16 The Administrator of General Services, in consulta17 tion with the Administrator of the Environmental Protec18 tion Agency, shall conduct, and submit to Congress a re19 port describing the results of, a study to determine wheth20 er and the extent to which the number of natural gas vehi21 cles in the Federal fleet should be increased. 

Æ 


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