I

107TH CONGRESS

1ST SESSION H. R. 1864

To amend the Internal Revenue Code of 1986 to encourage and accelerate

the nationwide production, retail sale, and consumer use of new motor

vehicles that are powered by fuel cell technology, hybrid technology,

battery electric technology, alternative fuels, or other advanced motor

vehicle technologies, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 16, 2001

Mr. CAMP (for himself, Ms. DUNN of Washington, Mr. RAMSTAD, Mrs. BONO,

and Mr. CANNON) 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 encourage

and accelerate the nationwide production, retail sale, and

consumer use of new motor vehicles that are powered

by fuel cell technology, hybrid technology, battery electric

technology, alternative fuels, or other advanced motor

vehicle technologies, 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,
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1 SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE;

2 TABLE OF CONTENTS.

3 (a) SHORT TITLE.—This Act may be cited as the

4 ‘‘Clean Efficient Automobiles Resulting From Advanced

5 Car Technologies (CLEAR ACT) Act of 2001’’.

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment

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

10 shall be considered to be made to a section or other provi11 sion of the Internal Revenue Code of 1986.

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

13 this Act is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.

Sec. 2. Findings and purposes.

Sec. 3. Alternative motor vehicle credit.

Sec. 4. Modification of credit for qualified electric vehicles.

Sec. 5. Credit for retail sale of alternative fuels as motor vehicle fuel.

Sec. 6. Extension of deduction for certain refueling property.

Sec. 7. Credit for installation of alternative fueling stations.

14 SEC. 2. FINDINGS AND PURPOSES.

15 (a) FINDINGS.—Congress finds the following:

16 (1) The United States is a large and diverse ge17 ographic area that includes densely populated urban

18 and suburban areas along with large sparsely popu19 lated rural areas separated by long distances, and,

20 as a result, Americans require reliable, efficient, and

21 diversified modes of transportation.
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1 (2) According to the Energy Information Ad2 ministration’s (referred to in this section as the

3 ‘‘EIA’’) March 2000 publication ‘‘International En4 ergy Outlook’’, oil currently provides a larger share

5 of world energy consumption than any other energy

6 source and most of the growth in oil consumption in

7 industrialized countries, including the United States,

8 is projected for the transportation sector, where few

9 alternatives are currently economical.

10 (3) To meet all its national security, economic

11 development, and public health and welfare needs,

12 the United States depends on oil as the primary fuel

13 source for the transportation of people and goods

14 and services in intrastate and interstate commerce.

15 (4) Since 1994, the United States has imported

16 over 50 percent of the oil it has consumed and the

17 EIA expects North American petroleum imports

18 from the Persian Gulf to more than double over the

19 forecast period of 1997–2020, with additional im20 ports from offshore Atlantic Basin producers and re21 finers; this increasingly heavy reliance on imported

22 oil presents national security risks, contributes nega23 tively to the balance of trade of the United States,

24 and adversely affects the United States economy,

25 public health, and the environment.
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1 (5) The United States currently has 121 areas

2 containing over a third of its population that do not

3 meet the National Ambient Air Quality Standards

4 resulting in losses of many billions of dollars in extra

5 economic costs and lost opportunities, immeasurable

6 health problems, and a general reduction in the

7 quality of life for millions of Americans.

8 (6) Mobile sources have become the top cause

9 of emissions in the United States.

10 (7) This heavy reliance on imported oil and fail11 ure to meet the National Ambient Air Quality

12 Standards demonstrate the need to accelerate devel13 opment of advanced fuel cell technology, hybrid tech14 nology, battery electric technology, and alternative

15 fuels technology for new motor vehicles in the trans16 portation of people and goods and services as an im17 portant means of helping to reverse the trends of in18 creasing dependence on oil imports and non-attain19 ment of air quality standards, contributing to less20 ening national security risks, improving our balance

21 of trade with other nations, increasing economic

22 growth, improving health and quality of life for mil23 lions of Americans, and providing public health, wel24 fare, and economic benefits.
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1 (8) Despite the availability of significant Fed2 eral and private sector funds and programs to en3 courage technological advancement for the develop4 ment and use of motor vehicles that are powered by

5 fuel cell and hybrid technologies, battery electric

6 technology, and alternative technologies, consumer

7 acceptance of such vehicles and fuels has been re8 strained by 3 major barriers—the increased costs of

9 these technologies, the cost of alternative fuels, and

10 the lack of adequate infrastructure to refuel the al11 ternative-fueled vehicles.

12 (b) PURPOSES.—The purposes of this Act are to—

13 (1) help instill consumer confidence and accept14 ance of alternative motor vehicles by lowering the 3

15 major barriers to this confidence and acceptance;

16 (2) enable the accelerated introduction into the

17 marketplace of new motor vehicle technologies with18 out adverse emission impact, while retaining a policy

19 of fuel neutrality in order to foster private innova20 tion and commercialization and allow market forces

21 to decide the technologies and fuels that are con22 sumer-friendly, safe, environmentally sound, and

23 economic;

24 (3) provide, for a limited time period, financial

25 incentives to encourage consumers nationwide to
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1 purchase or lease new fuel cell, hybrid, battery elec2 tric, and alternative fuel motor vehicles;

3 (4) increase demand of such vehicles so as to

4 make the annual production by manufacturers and

5 retail sale of such vehicles economically and commer6 cially viable for the consumer;

7 (5) promote and expand the use of such vehicles

8 nationwide; and

9 (6) promote a nationwide diversity of motor ve10 hicle fuels for advanced and hybrid technology and

11 alternatively fueled motor vehicles.

12 SEC. 3. ALTERNATIVE MOTOR VEHICLE CREDIT.

13 (a) IN GENERAL.—Subpart B of part IV of sub14 chapter A of chapter 1 (relating to foreign tax credit, etc.)

15 is amended by adding at the end the following:

16 ‘‘SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.

17 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al18 lowed as a credit against the tax imposed by this chapter

19 for the taxable year an amount equal to the sum of—

20 ‘‘(1) the new qualified fuel cell motor vehicle

21 credit determined under subsection (b),

22 ‘‘(2) the new qualified hybrid motor vehicle

23 credit determined under subsection (c), and

24 ‘‘(3) the new qualified alternative fuel motor ve25 hicle credit determined under subsection (d).
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1 ‘‘(b) NEW QUALIFIED FUEL CELL MOTOR VEHICLE

2 CREDIT.—

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

4 (a), the new qualified fuel cell motor vehicle credit

5 determined under this subsection with respect to a

6 new qualified fuel cell motor vehicle placed in service

7 by the taxpayer during the taxable year is—

8 ‘‘(A) $4,000, if such vehicle has a gross ve9 hicle weight rating of not more than 8,500

10 pounds,

11 ‘‘(B) $10,000, if such vehicle has a gross

12 vehicle weight rating of more than 8,500

13 pounds but not more than 14,000 pounds,

14 ‘‘(C) $20,000, if such vehicle has a gross

15 vehicle weight rating of more than 14,000

16 pounds but not more than 26,000 pounds, and

17 ‘‘(D) $40,000, if such vehicle has a gross

18 vehicle weight rating of more than 26,000

19 pounds.

20 ‘‘(2) INCREASE FOR FUEL EFFICIENCY.—

21 ‘‘(A) IN GENERAL.—The amount deter22 mined under paragraph (1)(A) with respect to

23 a new qualified fuel cell motor vehicle which is

24 a passenger automobile or light truck shall be

25 increased by—
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1 ‘‘(i) $1,000, if such vehicle achieves at

2 least 150 percent but less than 175 per3 cent of the 2000 model year city fuel econ4 omy,

5 ‘‘(ii) $1,500, if such vehicle achieves

6 at least 175 percent but less than 200 per7 cent of the 2000 model year city fuel econ8 omy,

9 ‘‘(iii) $2,000, if such vehicle achieves

10 at least 200 percent but less than 225 per11 cent of the 2000 model year city fuel econ12 omy,

13 ‘‘(iv) $2,500, if such vehicle achieves

14 at least 225 percent but less than 250 per15 cent of the 2000 model year city fuel econ16 omy,

17 ‘‘(v) $3,000, if such vehicle achieves

18 at least 250 percent but less than 275 per19 cent of the 2000 model year city fuel econ20 omy,

21 ‘‘(vi) $3,500, if such vehicle achieves

22 at least 275 percent but less than 300 per23 cent of the 2000 model year city fuel econ24 omy, and
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1 ‘‘(vii) $4,000, if such vehicle achieves

2 at least 300 percent of the 2000 model

3 year city fuel economy.

4 ‘‘(B) 2000 MODEL YEAR CITY FUEL ECON5 OMY.—For purposes of subparagraph (A), the

6 2000 model year city fuel economy with respect

7 to a vehicle shall be determined in accordance

8 with the following tables:

9 ‘‘(i) In the case of a passenger auto10 mobile:

‘‘If vehicle inertia weight

class is:

The 2000 model year city fuel

economy is:

1,500 or 1,750 lbs .................................................................... 43.7 mpg

2,000 lbs .................................................................................. 38.3 mpg

2,250 lbs .................................................................................. 34.1 mpg

2,500 lbs .................................................................................. 30.7 mpg

2,750 lbs .................................................................................. 27.9 mpg

3,000 lbs .................................................................................. 25.6 mpg

3,500 lbs .................................................................................. 22.0 mpg

4,000 lbs .................................................................................. 19.3 mpg

4,500 lbs .................................................................................. 17.2 mpg

5,000 lbs .................................................................................. 15.5 mpg

5,500 lbs .................................................................................. 14.1 mpg

6,000 lbs .................................................................................. 12.9 mpg

6,500 lbs .................................................................................. 11.9 mpg

7,000 or 8,500 lbs .................................................................... 11.1 mpg.

11 ‘‘(ii) In the case of a light truck:

‘‘If vehicle inertia weight

class is:

The 2000 model year city fuel

economy is:

1,500 or 1,750 lbs .................................................................... 37.6 mpg

2,000 lbs .................................................................................. 33.7 mpg

2,250 lbs .................................................................................. 30.6 mpg

2,500 lbs .................................................................................. 28.0 mpg

2,750 lbs .................................................................................. 25.9 mpg

3,000 lbs .................................................................................. 24.1 mpg

3,500 lbs .................................................................................. 21.3 mpg

4,000 lbs .................................................................................. 19.0 mpg

4,500 lbs .................................................................................. 17.3 mpg

5,000 lbs .................................................................................. 15.8 mpg

5,500 lbs .................................................................................. 14.6 mpg

6,000 lbs .................................................................................. 13.6 mpg
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‘‘If vehicle inertia weight

class is:

The 2000 model year city fuel

economy is:

6,500 lbs .................................................................................. 12.8 mpg

7,000 or 8,500 lbs .................................................................... 12.0 mpg.

1 ‘‘(C) VEHICLE INERTIA WEIGHT CLASS.—

2 For purposes of subparagraph (B), the term

3 ‘vehicle inertia weight class’ has the same

4 meaning as when defined in regulations pre5 scribed by the Administrator of the Environ6 mental Protection Agency for purposes of the

7 administration of title II of the Clean Air Act

8 (42 U.S.C. 7521 et seq.).

9 ‘‘(3) NEW QUALIFIED FUEL CELL MOTOR VEHI10 CLE.—For purposes of this subsection, the term

11 ‘new qualified fuel cell motor vehicle’ means a motor

12 vehicle—

13 ‘‘(A) which is propelled by power derived

14 from one or more cells which convert chemical

15 energy directly into electricity by combining ox16 ygen with hydrogen fuel which is stored on

17 board the vehicle in any form and may or may

18 not require reformation prior to use,

19 ‘‘(B) which, in the case of a passenger

20 automobile or light truck—

21 ‘‘(i) for 2002 and later model vehicles,

22 has received a certificate of conformity

23 under the Clean Air Act and meets or ex24 ceeds the equivalent qualifying California
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1 low emission vehicle standard under sec2 tion 243(e)(2) of the Clean Air Act for

3 that make and model year, and

4 ‘‘(ii) for 2004 and later model vehi5 cles, has received a certificate that such ve6 hicle meets or exceeds the Bin 5 Tier II

7 emission level established in regulations

8 prescribed by the Administrator of the En9 vironmental Protection Agency under sec10 tion 202(i) of the Clean Air Act for that

11 make and model year vehicle,

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

13 with the taxpayer,

14 ‘‘(D) which is acquired for use or lease by

15 the taxpayer and not for resale, and

16 ‘‘(E) which is made by a manufacturer.

17 ‘‘(c) NEW QUALIFIED HYBRID MOTOR VEHICLE

18 CREDIT.—

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

20 (a), the new qualified hybrid motor vehicle credit de21 termined under this subsection with respect to a new

22 qualified hybrid motor vehicle placed in service by

23 the taxpayer during the taxable year is the credit

24 amount determined under paragraph (2).

25 ‘‘(2) CREDIT AMOUNT.—
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1 ‘‘(A) IN GENERAL.—The credit amount de2 termined under this paragraph shall be deter3 mined in accordance with the following tables:

4 ‘‘(i) In the case of a new qualified hy5 brid motor vehicle which is a passenger

6 automobile or light truck and which pro7 vides the following percentage of the max8 imum available power:

‘‘If percentage of the maximum available power is:The credit amount is:

At least 5 percent but less than 10 percent ............................ $250

At least 10 percent but less than 20 percent .......................... $500

At least 20 percent but less than 30 percent .......................... $750

At least 30 percent .................................................................. $1,000.

9 ‘‘(ii) In the case of a new qualified hy10 brid motor vehicle which is a heavy duty

11 hybrid motor vehicle and which provides

12 the following percentage of the maximum

13 available power:

14 ‘‘(I) If such vehicle has a gross

15 vehicle weight rating of not more than

16 14,000 pounds:

‘‘If percentage of the maximum available power is:The credit amount is:

At least 20 percent but less than 30 percent .......................... $1,500

At least 30 percent but less than 40 percent .......................... $1,750

At least 40 percent but less than 50 percent .......................... $2,000

At least 50 percent but less than 60 percent .......................... $2,250

At least 60 percent .................................................................. $2,500.

17 ‘‘(II) If such vehicle has a gross

18 vehicle weight rating of more than
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1 14,000 but not more than 26,000

2 pounds:

‘‘If percentage of the maximum available power is:The credit amount is:

At least 20 percent but less than 30 percent .......................... $4,000

At least 30 percent but less than 40 percent .......................... $4,500

At least 40 percent but less than 50 percent .......................... $5,000

At least 50 percent but less than 60 percent .......................... $5,500

At least 60 percent .................................................................. $6,000.

3 ‘‘(III) If such vehicle has a gross

4 vehicle weight rating of more than

5 26,000 pounds:

‘‘If percentage of the maximum available power is:The credit amount is:

At least 20 percent but less than 30 percent .......................... $6,000

At least 30 percent but less than 40 percent .......................... $7,000

At least 40 percent but less than 50 percent .......................... $8,000

At least 50 percent but less than 60 percent .......................... $9,000

At least 60 percent .................................................................. $10,000.

6 ‘‘(B) INCREASE FOR FUEL EFFICIENCY.—

7 ‘‘(i) AMOUNT.—The amount deter8 mined under subparagraph (A)(i) with re9 spect to a passenger automobile or light

10 truck shall be increased by—

11 ‘‘(I) $500, if such vehicle

12 achieves at least 125 percent but less

13 than 150 percent of the 2000 model

14 year city fuel economy,

15 ‘‘(II) $1,000, if such vehicle

16 achieves at least 150 percent but less

17 than 175 percent of the 2000 model

18 year city fuel economy,
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1 ‘‘(III) $1,500, if such vehicle

2 achieves at least 175 percent but less

3 than 200 percent of the 2000 model

4 year city fuel economy,

5 ‘‘(IV) $2,000, if such vehicle

6 achieves at least 200 percent but less

7 than 225 percent of the 2000 model

8 year city fuel economy,

9 ‘‘(V) $2,500, if such vehicle

10 achieves at least 225 percent but less

11 than 250 percent of the 2000 model

12 year city fuel economy, and

13 ‘‘(VI) $3,000, if such vehicle

14 achieves at least 250 percent of the

15 2000 model year city fuel economy.

16 ‘‘(ii) 2000 MODEL YEAR CITY FUEL

17 ECONOMY.—For purposes of clause (i), the

18 2000 model year city fuel economy with re19 spect to a vehicle shall be determined using

20 the tables provided in subsection (b)(2)(B)

21 with respect to such vehicle.

22 ‘‘(C) INCREASE FOR ACCELERATED EMIS23 SIONS PERFORMANCE.—The amount deter24 mined under subparagraph (A)(ii) with respect

25 to an applicable heavy duty hybrid motor vehi-
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1 cle shall be increased by the increase credit

2 amount determined in accordance with the fol3 lowing tables:

4 ‘‘(i) In the case of a vehicle which has

5 a gross vehicle weight rating of not more

6 than 14,000 pounds:

‘‘If the model year is: The increase credit amount is:

2002 ......................................................................................... $3,500

2003 ......................................................................................... $3,000

2004 ......................................................................................... $2,500

2005 ......................................................................................... $2,000

2006......................................................................................... $1,500.

7 ‘‘(ii) In the case of a vehicle which

8 has a gross vehicle weight rating of more

9 than 14,000 pounds but not more than

10 26,000 pounds:

‘‘If the model year is: The increase credit amount is:

2002 ......................................................................................... $9,000

2003 ......................................................................................... $7,750

2004 ......................................................................................... $6,500

2005 ......................................................................................... $5,250

2006......................................................................................... $4,000.

11 ‘‘(iii) In the case of a vehicle which

12 has a gross vehicle weight rating of more

13 than 26,000 pounds:

‘‘If the model year is: The increase credit amount is:

2002 ......................................................................................... $14,000

2003 ......................................................................................... $12,000

2004 ......................................................................................... $10,000

2005 ......................................................................................... $8,000

2006......................................................................................... $6,000.

14 ‘‘(D) DEFINITIONS.—

15 ‘‘(i) APPLICABLE HEAVY DUTY HY16 BRID MOTOR VEHICLE.—For purposes of
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1 subparagraph (C), the term ‘applicable

2 heavy duty hybrid motor vehicle’ means a

3 heavy duty hybrid motor vehicle which is

4 powered by an internal combustion or heat

5 engine which is certified as meeting the

6 emission standards set in the regulations

7 prescribed by the Administrator of the En8 vironmental Protection Agency for 2007

9 and later model year diesel heavy duty en10 gines or 2008 and later model year

11 ottocycle heavy duty engines, as applicable.

12 ‘‘(ii) HEAVY DUTY HYBRID MOTOR VE13 HICLE.—For purposes of this paragraph,

14 the term ‘heavy duty hybrid motor vehicle’

15 means a new qualified hybrid motor vehicle

16 which has a gross vehicle weight rating of

17 more than 10,000 pounds and draws pro18 pulsion energy from both of the following

19 onboard sources of stored energy:

20 ‘‘(I) An internal combustion or

21 heat engine using consumable fuel

22 which, for 2002 and later model vehi23 cles, has received a certificate of con24 formity under the Clean Air Act and

25 meets or exceeds a level of not greater
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1 than 3.0 grams per brake horse2 power–hour of oxides of nitrogen and

3 0.01 per brake horsepower–hour of

4 particulate matter.

5 ‘‘(II) A rechargeable energy stor6 age system.

7 ‘‘(iii) MAXIMUM AVAILABLE POWER.—

8 ‘‘(I) PASSENGER AUTOMOBILE

9 OR LIGHT TRUCK.—For purposes of

10 subparagraph (A)(i), the term ‘max11 imum available power’ means the

12 maximum power available from the

13 battery or other electrical storage de14 vice, during a standard 10 second

15 pulse power test, divided by the sum

16 of the battery or other electrical stor17 age device and the SAE net power of

18 the heat engine.

19 ‘‘(II) HEAVY DUTY HYBRID

20 MOTOR VEHICLE.—For purposes of

21 subparagraph (A)(ii), the term ‘max22 imum available power’ means the

23 maximum power available from the

24 battery or other electrical storage de25 vice, during a standard 10 second
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1 pulse power test, divided by the vehi2 cle’s total traction power. The term

3 ‘total traction power’ means the sum

4 of the electric motor peak power and

5 the heat engine peak power of the ve6 hicle, except that if the electric motor

7 is the sole means by which the vehicle

8 can be driven, the total traction power

9 is the peak electric motor power.

10 ‘‘(3) NEW QUALIFIED HYBRID MOTOR VEHI11 CLE.—For purposes of this subsection, the term

12 ‘new qualified hybrid motor vehicle’ means a motor

13 vehicle—

14 ‘‘(A) which draws propulsion energy from

15 onboard sources of stored energy which are

16 both—

17 ‘‘(i) an internal combustion or heat

18 engine using combustible fuel, and

19 ‘‘(ii) a rechargeable energy storage

20 system,

21 ‘‘(B) which, in the case of a passenger

22 automobile or light truck—

23 ‘‘(i) for 2002 and later model vehicles,

24 has received a certificate of conformity

25 under the Clean Air Act and meets or ex-
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1 ceeds the equivalent qualifying California

2 low emission vehicle standard under sec3 tion 243(e)(2) of the Clean Air Act for

4 that make and model year, and

5 ‘‘(ii) for 2004 and later model vehi6 cles, has received a certificate that such ve7 hicle meets or exceeds the Bin 5 Tier II

8 emission level established in regulations

9 prescribed by the Administrator of the En10 vironmental Protection Agency under sec11 tion 202(i) of the Clean Air Act for that

12 make and model year vehicle,

13 ‘‘(C) the original use of which commences

14 with the taxpayer,

15 ‘‘(D) which is acquired for use or lease by

16 the taxpayer and not for resale, and

17 ‘‘(E) which is made by a manufacturer.

18 ‘‘(d) NEW QUALIFIED ALTERNATIVE FUEL MOTOR

19 VEHICLE CREDIT.—

20 ‘‘(1) ALLOWANCE OF CREDIT.—Except as pro21 vided in paragraph (5), the credit determined under

22 this subsection is an amount equal to the applicable

23 percentage of the incremental cost of any new quali24 fied alternative fuel motor vehicle placed in service

25 by the taxpayer during the taxable year.
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1 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes

2 of paragraph (1), the applicable percentage with re3 spect to any new qualified alternative fuel motor ve4 hicle is—

5 ‘‘(A) 50 percent, plus

6 ‘‘(B) 30 percent, if such vehicle—

7 ‘‘(i) has received a certificate of con8 formity under the Clean Air Act and meets

9 or exceeds the most stringent standard

10 available for certification under the Clean

11 Air Act for that make and model year vehi12 cle (other than a zero emission standard),

13 or

14 ‘‘(ii) has received an order from an

15 applicable State certifying the vehicle for

16 sale or lease in California and meets or ex17 ceeds the most stringent standard available

18 for certification under the State laws of

19 California (enacted in accordance with a

20 waiver granted under section 209(b) of the

21 Clean Air Act) for that make and model

22 year vehicle (other than a zero emission

23 standard).

24 ‘‘(3) INCREMENTAL COST.—For purposes of

25 this subsection, the incremental cost of any new
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1 qualified alternative fuel motor vehicle is equal to

2 the amount of the excess of the manufacturer’s sug3 gested retail price for such vehicle over such price

4 for a gasoline or diesel fuel motor vehicle of the

5 same model, to the extent such amount does not

6 exceed—

7 ‘‘(A) $5,000, if such vehicle has a gross ve8 hicle weight rating of not more than 8,500

9 pounds,

10 ‘‘(B) $10,000, if such vehicle has a gross

11 vehicle weight rating of more than 8,500

12 pounds but not more than 14,000 pounds,

13 ‘‘(C) $25,000, if such vehicle has a gross

14 vehicle weight rating of more than 14,000

15 pounds but not more than 26,000 pounds, and

16 ‘‘(D) $40,000, if such vehicle has a gross

17 vehicle weight rating of more than 26,000

18 pounds.

19 ‘‘(4) QUALIFIED ALTERNATIVE FUEL MOTOR

20 VEHICLE DEFINED.—For purposes of this

21 subsection—

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

23 alternative fuel motor vehicle’ means any motor

24 vehicle—
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1 ‘‘(i) which is only capable of operating

2 on an alternative fuel,

3 ‘‘(ii) the original use of which com4 mences with the taxpayer,

5 ‘‘(iii) which is acquired by the tax6 payer for use or lease, but not for resale,

7 and

8 ‘‘(iv) which is made by a manufac9 turer.

10 ‘‘(B) ALTERNATIVE FUEL.—The term ‘al11 ternative fuel’ means compressed natural gas,

12 liquefied natural gas, liquefied petroleum gas,

13 hydrogen, and any liquid at least 85 percent of

14 the volume of which consists of methanol.

15 ‘‘(5) CREDIT FOR MIXED-FUEL VEHICLES.—

16 ‘‘(A) IN GENERAL.—In the case of a

17 mixed-fuel vehicle placed in service by the tax18 payer during the taxable year, the credit deter19 mined under this subsection is an amount equal

20 to—

21 ‘‘(i) in the case of a 75/25 mixed-fuel

22 vehicle, 70 percent of the credit which

23 would have been allowed under this sub24 section if such vehicle was a qualified alter25 native fuel motor vehicle, and
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1 ‘‘(ii) in the case of a 95/5 mixed-fuel

2 vehicle, 95 percent of the credit which

3 would have been allowed under this sub4 section if such vehicle was a qualified alter5 native fuel motor vehicle.

6 ‘‘(B) MIXED-FUEL VEHICLE.—For pur7 poses of this subsection, the term ‘mixed-fuel

8 vehicle’ means any motor vehicle described in

9 subparagraph (C) or (D) of paragraph (3),

10 which—

11 ‘‘(i) is certified by the manufacturer

12 as being able to perform efficiently in nor13 mal operation on a combination of an al14 ternative fuel and a petroleum-based fuel,

15 ‘‘(ii) either—

16 ‘‘(I) has received a certificate of

17 conformity under the Clean Air Act,

18 or

19 ‘‘(II) has received an order from

20 an applicable State certifying the vehi21 cle for sale or lease in California and

22 meets or exceeds the low emission ve23 hicle standard under section 88.105-

24 94 of title 40, Code of Federal Regu-
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1 lations, for that make and model year

2 vehicle,

3 ‘‘(iii) the original use of which com4 mences with the taxpayer,

5 ‘‘(iv) which is acquired by the tax6 payer for use or lease, but not for resale,

7 and

8 ‘‘(v) which is made by a manufac9 turer.

10 ‘‘(C) 75/25 MIXED-FUEL VEHICLE.—For

11 purposes of this subsection, the term ‘75/25

12 mixed-fuel vehicle’ means a mixed-fuel vehicle

13 which operates using at least 75 percent alter14 native fuel and not more than 25 percent petro15 leum-based fuel.

16 ‘‘(D) 95/5 MIXED-FUEL VEHICLE.—For

17 purposes of this subsection, the term ‘95/5

18 mixed-fuel vehicle’ means a mixed-fuel vehicle

19 which operates using at least 95 percent alter20 native fuel and not more than 5 percent petro21 leum-based fuel.

22 ‘‘(e) APPLICATION WITH OTHER CREDITS.—The

23 credit allowed under subsection (a) for any taxable year

24 shall not exceed the excess (if any) of—
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1 ‘‘(1) the regular tax for the taxable year re2 duced by the sum of the credits allowable under sub3 part A and sections 27, 29, and 30, over

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

5 year.

6 ‘‘(f) OTHER DEFINITIONS AND SPECIAL RULES.—

7 For purposes of this section—

8 ‘‘(1) CONSUMABLE FUEL.—The term

9 ‘consumable fuel’ means any solid, liquid, or gaseous

10 matter which releases energy when consumed by an

11 auxiliary power unit.

12 ‘‘(2) MOTOR VEHICLE.—The term ‘motor vehi13 cle’ has the meaning given such term by section

14 30(c)(2).

15 ‘‘(3) 2000 MODEL YEAR CITY FUEL ECON16 OMY.—The 2000 model year city fuel economy with

17 respect to any vehicle shall be measured under rules

18 similar to the rules under section 4064(c).

19 ‘‘(4) OTHER TERMS.—The terms ‘automobile’,

20 ‘passenger automobile’, ‘light truck’, and ‘manufac21 turer’ have the meanings given such terms in regula22 tions prescribed by the Administrator of the Envi23 ronmental Protection Agency for purposes of the ad24 ministration of title II of the Clean Air Act (42

25 U.S.C. 7521 et seq.).
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1 ‘‘(5) REDUCTION IN BASIS.—For purposes of

2 this subtitle, the basis of any property for which a

3 credit is allowable under subsection (a) shall be re4 duced by the amount of such credit so allowed (de5 termined without regard to subsection (e)).

6 ‘‘(6) NO DOUBLE BENEFIT.—The amount of

7 any deduction or credit allowable under this

8 chapter—

9 ‘‘(A) for any incremental cost taken into

10 account in computing the amount of the credit

11 determined under subsection (d) shall be re12 duced by the amount of such credit attributable

13 to such cost, and

14 ‘‘(B) with respect to a vehicle described

15 under subsection (b) or (c), shall be reduced by

16 the amount of credit allowed under subsection

17 (a) for such vehicle for the taxable year.

18 ‘‘(7) PROPERTY USED BY TAX-EXEMPT ENTI19 TIES.—In the case of a credit amount which is al20 lowable with respect to a motor vehicle which is ac21 quired by an entity exempt from tax under this

22 chapter, the person which sells or leases such vehicle

23 to the entity shall be treated as the taxpayer with

24 respect to the vehicle for purposes of this section

25 and the credit shall be allowed to such person, but
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•HR 1864 IH

1 only if the person clearly discloses to the entity in

2 any sale or lease document the specific amount of

3 any credit otherwise allowable to the entity under

4 this section and reduces the sale or lease price of

5 such vehicle by an equivalent amount of such credit.

6 ‘‘(8) RECAPTURE.—The Secretary shall, by reg7 ulations, provide for recapturing the benefit of any

8 credit allowable under subsection (a) with respect to

9 any property which ceases to be property eligible for

10 such credit (including recapture in the case of a

11 lease period of less than the economic life of a vehi12 cle).

13 ‘‘(9) PROPERTY USED OUTSIDE UNITED

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

15 allowed under subsection (a) with respect to any

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

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

18 account under section 179.

19 ‘‘(10) ELECTION TO NOT TAKE CREDIT.—No

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

21 vehicle if the taxpayer elects to not have this section

22 apply to such vehicle.

23 ‘‘(11) CARRYFORWARD ALLOWED.—

24 ‘‘(A) IN GENERAL.—If the credit amount

25 allowable under subsection (a) for a taxable
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•HR 1864 IH

1 year exceeds the amount of the limitation under

2 subsection (e) for such taxable year (referred to

3 as the ‘unused credit year’ in this paragraph),

4 such excess shall be allowed as a credit

5 carryforward for each of the 20 taxable years

6 following the unused credit year.

7 ‘‘(B) RULES.—Rules similar to the rules of

8 section 39 shall apply with respect to the credit

9 carryforward under subparagraph (A).

10 ‘‘(12) INTERACTION WITH AIR QUALITY AND

11 MOTOR VEHICLE SAFETY STANDARDS.—Unless oth12 erwise provided in this section, a motor vehicle shall

13 not be considered eligible for a credit under this sec14 tion unless such vehicle is in compliance with—

15 ‘‘(A) the applicable provisions of the Clean

16 Air Act for the applicable make and model year

17 of the vehicle (or applicable air quality provi18 sions of State law in the case of a State which

19 has adopted such provision under a waiver

20 under section 209(b) of the Clean Air Act), and

21 ‘‘(B) the motor vehicle safety provisions of

22 sections 30101 through 30169 of title 49,

23 United States Code.

24 ‘‘(g) REGULATIONS.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall pro2 mulgate such regulations as necessary to carry out

3 the provisions of this section.

4 ‘‘(2) ADMINISTRATOR OF ENVIRONMENTAL

5 PROTECTION AGENCY.—The Administrator of the

6 Environmental Protection Agency, in coordination

7 with the Secretary of Transportation and the Sec8 retary of the Treasury, shall prescribe such regula9 tions as necessary to determine whether a motor ve10 hicle meets the requirements to be eligible for a

11 credit under this section.

12 ‘‘(h) TERMINATION.—This section shall not apply to

13 any property placed in service after—

14 ‘‘(1) in the case of a new qualified fuel cell

15 motor vehicle (as described in subsection (b)), De16 cember 31, 2011, and

17 ‘‘(2) in the case of any other property, Decem18 ber 31, 2007.’’.

19 (b) CONFORMING AMENDMENTS.—

20 (1) Section 1016(a) is amended by striking

21 ‘‘and’’ at the end of paragraph (26), by striking the

22 period at the end of paragraph (27) and inserting ‘‘,

23 and’’, and by adding at the end the following:

24 ‘‘(28) to the extent provided in section

25 30B(f)(4).’’.
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1 (2) Section 53(d)(1)(B)(iii) is amended by in2 serting ‘‘, or not allowed under section 30B solely by

3 reason of the application of section 30B(e)(2)’’ be4 fore the period.

5 (3) Section 55(c)(2) is amended by inserting

6 ‘‘30B(e),’’ after ‘‘30(b)(3)’’.

7 (4) Section 6501(m) is amended by inserting

8 ‘‘30B(f)(9),’’ after ‘‘30(d)(4),’’.

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

10 IV of subchapter A of chapter 1 is amended by in11 serting after the item relating to section 30A the fol12 lowing:

‘‘Sec. 30B. Alternative motor vehicle credit.’’.

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

14 this section shall apply to property placed in service after

15 December 31, 2001, in taxable years ending after such

16 date.

17 SEC. 4. MODIFICATION OF CREDIT FOR QUALIFIED ELEC18 TRIC VEHICLES.

19 (a) AMOUNT OF CREDIT.—

20 (1) IN GENERAL.—Section 30(a) (relating to al21 lowance of credit) is amended by striking ‘‘10 per22 cent of’’.

23 (2) LIMITATION OF CREDIT ACCORDING TO

24 TYPE OF VEHICLE.—Section 30(b) (relating to limi25 tations) is amended—
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1 (A) by striking paragraphs (1) and (2) and

2 inserting the following:

3 ‘‘(1) LIMITATION ACCORDING TO TYPE OF VE4 HICLE.—The amount of the credit allowed under

5 subsection (a) for any vehicle shall not exceed the

6 greatest of the following amounts applicable to such

7 vehicle:

8 ‘‘(A) In the case of a vehicle which con9 forms to the Motor Vehicle Safety Standard

10 500 prescribed by the Secretary of Transpor11 tation, the lesser of—

12 ‘‘(i) 10 percent of the manufacturer’s

13 suggested retail price of the vehicle, or

14 ‘‘(ii) $4,000.

15 ‘‘(B) In the case of a vehicle with a gross

16 vehicle weight rating not exceeding 8,500

17 pounds—

18 ‘‘(i) $4,000, or

19 ‘‘(ii) $6,000, if such vehicle is—

20 ‘‘(I) capable of a driving range of

21 at least 100 miles on a single charge

22 of the vehicle’s rechargeable batteries

23 and measured pursuant to the urban

24 dynamometer schedules under appen-
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•HR 1864 IH

1 dix I to part 86 of title 40, Code of

2 Federal Regulations, or

3 ‘‘(II) capable of a payload capac4 ity of at least 1000 pounds.

5 ‘‘(C) In the case of a vehicle with a gross

6 vehicle weight rating exceeding 8,500 but not

7 exceeding 14,000 pounds, $10,000.

8 ‘‘(D) In the case of a vehicle with a gross

9 vehicle weight rating exceeding 14,000 but not

10 exceeding 26,000 pounds, $20,000.

11 ‘‘(E) In the case of a vehicle with a gross

12 vehicle weight rating exceeding 26,000 pounds,

13 $40,000.’’, and

14 (B) by redesignating paragraph (3) as

15 paragraph (2).

16 (3) CONFORMING AMENDMENTS.—

17 (A) Section 53(d)(1)(B)(iii) is amended by

18 striking ‘‘section 30(b)(3)(B)’’ and inserting

19 ‘‘section 30(b)(2)(B)’’.

20 (3) Section 55(c)(2) is amended by striking

21 ‘‘30(b)(3)’’ and inserting ‘‘30(b)(2)’’.

22 (b) QUALIFIED BATTERY ELECTRIC VEHICLE.—

23 (1) IN GENERAL.—Section 30(c)(1)(A) (defin24 ing qualified electric vehicle) is amended to read as

25 follows:
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•HR 1864 IH

1 ‘‘(A) which is—

2 ‘‘(i) operated solely by use of a bat3 tery or battery pack, or

4 ‘‘(ii) powered primarily through the

5 use of an electric battery or battery pack

6 using a flywheel or capacitor which stores

7 energy produced by an electric motor

8 through regenerative braking to assist in

9 vehicle operation,’’.

10 (2) LEASED VEHICLES.—Section 30(c)(1)(C) is

11 amended by inserting ‘‘or lease’’ after ‘‘use’’.

12 (3) CONFORMING AMENDMENTS.—

13 (A) Subsections (a), (b)(2), and (c) of sec14 tion 30 are each amended by inserting ‘‘bat15 tery’’ after ‘‘qualified’’ each place it appears.

16 (B) The heading of subsection (c) of sec17 tion 30 is amended by inserting ‘‘BATTERY’’

18 after ‘‘QUALIFIED’’.

19 (C) The heading of section 30 is amended

20 by inserting ‘‘BATTERY’’ after ‘‘QUALIFIED’’.

21 (D) The item relating to section 30 in the

22 table of sections for subpart B of part IV of

23 subchapter A of chapter 1 is amended by in24 serting ‘‘battery’’ after ‘‘qualified’’.
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•HR 1864 IH

1 (E) Section 179A(c)(3) is amended by in2 serting ‘‘battery’’ before ‘‘electric’’.

3 (F) The heading of paragraph (3) of sec4 tion 179A(c) is amended by inserting ‘‘BAT5 TERY’’ before ‘‘ELECTRIC’’.

6 (c) ADDITIONAL SPECIAL RULES.—Section 30(d)

7 (relating to special rules) is amended by adding at the end

8 the following:

9 ‘‘(5) NO DOUBLE BENEFIT.—The amount of

10 any deduction or credit allowable under this chapter

11 for any cost taken into account in computing the

12 amount of the credit determined under subsection

13 (a) shall be reduced by the amount of such credit at14 tributable to such cost.

15 ‘‘(6) PROPERTY USED BY TAX-EXEMPT ENTI16 TIES.—In the case of a credit amount which is al17 lowable with respect to a vehicle which is acquired

18 by an entity exempt from tax under this chapter, the

19 person which sells or leases such vehicle to the entity

20 shall be treated as the taxpayer with respect to the

21 vehicle for purposes of this section and the credit

22 shall be allowed to such person, but only if the per23 son clearly discloses to the entity in any sale or lease

24 contract the specific amount of any credit otherwise

25 allowable to the entity under this section and re-
35

•HR 1864 IH

1 duces the sale or lease price of such vehicle by an

2 equivalent amount of such credit.’’.

3 (d) EXTENSION.—Section 30(e) (relating to termi4 nation) is amended by striking ‘‘2004’’ and inserting

5 ‘‘2007’’.

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

7 this section shall apply to property placed in service after

8 December 31, 2001, in taxable years ending after such

9 date.

10 SEC. 5. CREDIT FOR RETAIL SALE OF ALTERNATIVE FUELS

11 AS MOTOR VEHICLE FUEL.

12 (a) IN GENERAL.—Subpart D of part IV of sub13 chapter A of chapter 1 (relating to business related cred14 its) is amended by inserting after section 40 the following:

15 ‘‘SEC. 40A. CREDIT FOR RETAIL SALE OF ALTERNATIVE

16 FUELS AS MOTOR VEHICLE FUEL.

17 ‘‘(a) GENERAL RULE.—For purposes of section 38,

18 the alternative fuel retail sales credit for any taxable year

19 is 50 cents for each gasoline gallon equivalent of alter20 native fuel sold at retail by the taxpayer during such year

21 as a fuel to propel any qualified motor vehicle, but only

22 if the taxpayer reduces the retail sales price of such fuel

23 by an equivalent amount of such credit.

24 ‘‘(b) DEFINITIONS.—For purposes of this section—
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•HR 1864 IH

1 ‘‘(1) ALTERNATIVE FUEL.—The term ‘alter2 native fuel’ means compressed natural gas, liquefied

3 natural gas, liquefied petroleum gas, hydrogen, and

4 any liquid at least 85 percent of the volume of which

5 consists of methanol.

6 ‘‘(2) GASOLINE GALLON EQUIVALENT.—The

7 term ‘gasoline gallon equivalent’ means, with respect

8 to any alternative fuel, the amount (determined by

9 the Secretary) of such fuel having a Btu content of

10 114,000.

11 ‘‘(3) QUALIFIED MOTOR VEHICLE.—The term

12 ‘qualified motor vehicle’ means any motor vehicle (as

13 defined in section 30(c)(2)) which meets any appli14 cable Federal or State emissions standards with re15 spect to each fuel by which such vehicle is designed

16 to be propelled.

17 ‘‘(4) SOLD AT RETAIL.—

18 ‘‘(A) IN GENERAL.—The term ‘sold at re19 tail’ means the sale, for a purpose other than

20 resale, after manufacture, production, or impor21 tation.

22 ‘‘(B) USE TREATED AS SALE.—If any per23 son uses alternative fuel (including any use

24 after importation) as a fuel to propel any quali25 fied alternative fuel motor vehicle (as defined in
37

•HR 1864 IH

1 section 30B(d)(4)) before such fuel is sold at

2 retail, then such use shall be treated in the

3 same manner as if such fuel were sold at retail

4 as a fuel to propel such a vehicle by such per5 son.

6 ‘‘(c) NO DOUBLE BENEFIT.—The amount of any de7 duction or credit allowable under this chapter for any fuel

8 taken into account in computing the amount of the credit

9 determined under subsection (a) shall be reduced by the

10 amount of such credit attributable to such fuel.

11 ‘‘(d) PASS-THRU IN THE CASE OF ESTATES AND

12 TRUSTS.—Under regulations prescribed by the Secretary,

13 rules similar to the rules of subsection (d) of section 52

14 shall apply.

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

16 any fuel sold at retail after December 31, 2007.’’.

17 (b) CREDIT TREATED AS BUSINESS CREDIT.—Sec18 tion 38(b) (relating to current year business credit) is

19 amended by striking ‘‘plus’’ at the end of paragraph (12),

20 by striking the period at the end of paragraph (13) and

21 inserting ‘‘, plus’’, and by adding at the end the following:

22 ‘‘(14) the alternative fuel retail sales credit de23 termined under section 40A(a).’’.
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•HR 1864 IH

1 (c) TRANSITIONAL RULE.—Section 39(d) (relating to

2 transitional rules) is amended by adding at the end the

3 following:

4 ‘‘(10) NO CARRYBACK OF SECTION 40A CREDIT

5 BEFORE EFFECTIVE DATE.—No portion of the un6 used business credit for any taxable year which is

7 attributable to the alternative fuel retail sales credit

8 determined under section 40A(a) may be carried

9 back to a taxable year ending before January 1,

10 2002.’’.

11 (d) CLERICAL AMENDMENT.—The table of sections

12 for subpart D of part IV of subchapter A of chapter 1

13 is amended by inserting after the item relating to section

14 40 the following:

‘‘Sec. 40A. Credit for retail sale of alternative fuels as motor vehicle fuel.’’.

15 (e) EFFECTIVE DATE.—The amendments made by

16 this section shall apply to fuel sold at retail after Decem17 ber 31, 2001, in taxable years ending after such date.

18 SEC. 6. EXTENSION OF DEDUCTION FOR CERTAIN REFUEL19 ING PROPERTY.

20 (a) IN GENERAL.—Section 179A(f) (relating to ter21 mination) is amended by striking ‘‘2004’’ and inserting

22 ‘‘2007’’.

23 (b) CONFORMING AMENDMENT.—Section 179A(c)

24 (relating to qualified clean-fuel vehicle property defined)

25 is amended by striking paragraph (3).
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•HR 1864 IH

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

2 this section shall apply to property placed in service after

3 December 31, 2001, in taxable years ending after such

4 date.

5 SEC. 7. CREDIT FOR INSTALLATION OF ALTERNATIVE

6 FUELING STATIONS.

7 (a) IN GENERAL.—Subpart B of part IV of sub8 chapter A of chapter 1 (relating to foreign tax credit, etc.),

9 as amended by section 3, is amended by adding at the

10 end the following:

11 ‘‘SEC. 30C. CLEAN-FUEL VEHICLE REFUELING PROPERTY

12 CREDIT.

13 ‘‘(a) CREDIT ALLOWED.—There shall be allowed as

14 a credit against the tax imposed by this chapter for the

15 taxable year an amount equal to—

16 ‘‘(1) 50 percent, in the case of retail clean-fuel

17 vehicle refueling property, and

18 ‘‘(2) 50 percent, in the case of residential clean19 fuel vehicle refueling property,

20 of the amount paid or incurred by the taxpayer during

21 the taxable year for the installation of clean-fuel vehicle

22 refueling property.

23 ‘‘(b) LIMITATION.—The credit allowed under—
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•HR 1864 IH

1 ‘‘(1) subsection (a)(1) with respect to clean-fuel

2 vehicle refueling property, shall not exceed $30,000,

3 and

4 ‘‘(2) subsection (a)(2) with respect to clean-fuel

5 vehicle refueling property, shall not exceed $1,000.

6 ‘‘(c) YEAR CREDIT ALLOWED.—The credit allowed

7 under subsection (a) shall be allowed in the taxable year

8 in which the clean-fuel vehicle refueling property is placed

9 in service by the taxpayer.

10 ‘‘(d) DEFINITIONS.—For purposes of this section—

11 ‘‘(1) CLEAN-FUEL VEHICLE REFUELING PROP12 ERTY.—The term ‘clean-fuel vehicle refueling prop13 erty’ has the same meaning given the term ‘qualified

14 clean-fuel vehicle refueling property’ under section

15 179A.

16 ‘‘(2) RESIDENTIAL CLEAN-FUEL VEHICLE RE17 FUELING PROPERTY.—The term ‘residential clean18 fuel vehicle refueling property’ means clean-fuel ve19 hicle refueling property which is installed on prop20 erty which is used as the principal residence (within

21 the meaning of section 121) of the taxpayer.

22 ‘‘(3) RETAIL CLEAN-FUEL VEHICLE REFUELING

23 PROPERTY.—The term ‘retail clean-fuel vehicle re24 fueling property’ means clean-fuel vehicle refueling

25 property—
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•HR 1864 IH

1 ‘‘(A) which is installed on property used in

2 a trade or business of the taxpayer, and

3 ‘‘(B) if such refueling property—

4 ‘‘(i) is—

5 ‘‘(I) available to the public dur6 ing normal business hours, and

7 ‘‘(II) capable of serving at least 3

8 motor vehicles at the same time, or

9 ‘‘(ii) regularly serves at least 1 fleet of

10 10 or more motor vehicles.

11 ‘‘(e) APPLICATION WITH OTHER CREDITS.—The

12 credit allowed under subsection (a) for any taxable year

13 shall not exceed the excess (if any) of—

14 ‘‘(1) the regular tax for the taxable year re15 duced by the sum of the credits allowable under sub16 part A and sections 27, 29, 30, and 30B, over

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

18 year.

19 ‘‘(f) BASIS REDUCTION.—For purposes of this title,

20 the basis of any property shall be reduced by the portion

21 of the cost of such property taken into account under sub22 section (a).

23 ‘‘(g) NO DOUBLE BENEFIT.—No deduction shall be

24 allowed under section 179A with respect to any property
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1 with respect to which a credit is allowed under subsection

2 (a).

3 ‘‘(h) REFUELING PROPERTY INSTALLED FOR TAX4 EXEMPT ENTITIES.—In the case of clean-fuel vehicle re5 fueling property installed on property owned or used by

6 an entity exempt from tax under this chapter, the person

7 which installs such refueling property for the entity shall

8 be treated as the taxpayer with respect to the refueling

9 property for purposes of this section (and such refueling

10 property shall be treated as retail clean-fuel vehicle refuel11 ing property) and the credit shall be allowed to such per12 son, but only if the person clearly discloses to the entity

13 in any installation contract the specific amount of the

14 credit allowable under this section and modifies the price

15 of such contract to take into account the amount of such

16 credit.

17 ‘‘(i) CARRYFORWARD ALLOWED.—

18 ‘‘(1) IN GENERAL.—If the credit amount allow19 able under subsection (a) for a taxable year exceeds

20 the amount of the limitation under subsection (b)

21 for such taxable year (referred to as the ‘unused

22 credit year’ in this subsection), such excess shall be

23 allowed as a credit carryforward for each of the 20

24 taxable years following the unused credit year.
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1 ‘‘(2) RULES.—Rules similar to the rules of sec2 tion 39 shall apply with respect to the credit

3 carryforward under paragraph (1).

4 ‘‘(j) SPECIAL RULES.—Rules similar to the rules of

5 paragraphs (4) and (5) of section 179A(e) shall apply.

6 ‘‘(k) REGULATIONS.—The Secretary shall prescribe

7 such regulations as necessary to carry out the provisions

8 of this section.

9 ‘‘(l) TERMINATION.—This section shall not apply to

10 any property placed in service after December 31, 2007.’’.

11 (b) CONFORMING AMENDMENTS.—

12 (1) Section 1016(a), as amended by section

13 3(b)(1), is amended by striking ‘‘and’’ at the end of

14 paragraph (27), by striking the period at the end of

15 paragraph (28) and inserting ‘‘, and’’, and by add16 ing at the end the following:

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

18 30C(f).’’.

19 (2) Section 53(d)(1)(B)(iii), as amended by sec20 tion 3(b)(2), is amended by inserting ‘‘, or not al21 lowed under section 30C solely by reason of the ap22 plication of section 30C(e)(2)’’ before the period.

23 (3) Section 55(c)(2), as amended by section

24 3(b)(3), is amended by inserting ‘‘30C(e),’’ after

25 ‘‘30B(e)’’.
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1 (4) The table of sections for subpart B of part

2 IV of subchapter A of chapter 1, as amended by sec3 tion 3(b)(5), is amended by inserting after the item

4 relating to section 30B the following:

‘‘Sec. 30C. Clean-fuel vehicle refueling property credit.’’.

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

6 this section shall apply to property placed in service after

7 December 31, 2001, in taxable years ending after such

8 date.

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