II 

108TH CONGRESS 

2D SESSION S. 2510

To amend the Internal Revenue Code of 1986 to allow a credit for the 

installation of hydrogen fueling stations and to exclude earnings from 

hydrogen fuel sales from gross income. 

IN THE SENATE OF THE UNITED STATES 

JUNE 8, 2004

Mr. WYDEN 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 allow a 

credit for the installation of hydrogen fueling stations 

and to exclude earnings from hydrogen fuel sales from 

gross income.

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

3 SECTION 1. CREDIT FOR INSTALLATION OF HYDROGEN 

4 FUELING STATIONS. 

5 (a) IN GENERAL.—Subpart B of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of 

7 1986 (relating to foreign tax credit, etc.) is amended by 

8 adding at the end the following new section: 
2

•S 2510 IS 

1 ‘‘SEC. 30B. HYDROGEN-POWERED VEHICLE REFUELING 

2 PROPERTY CREDIT. 

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

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

5 taxable year an amount equal to 50 percent of the amount 

6 paid or incurred by the taxpayer during the taxable year 

7 for the qualified hydrogen-powered vehicle refueling prop8 erty and the installation thereof. 

9 ‘‘(b) YEAR CREDIT ALLOWED.—The credit allowed 

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

11 in which the qualified hydrogen-powered vehicle refueling 

12 property is placed in service by the taxpayer. 

13 ‘‘(c) DEFINITION OF QUALIFIED HYDROGEN-POW14 ERED VEHICLE REFUELING PROPERTY.—The term 

15 ‘qualified hydrogen-powered vehicle refueling property’ 

16 means any property (not including a building and its 

17 structural components) if—

18 ‘‘(1) such property is of a character subject to 

19 the allowance for depreciation, 

20 ‘‘(2) the original use of such property begins 

21 with the taxpayer, and 

22 ‘‘(3) such property is for the production, stor23 age, or dispensing of hydrogen fuel into the fuel 

24 tank of a motor vehicle propelled by such fuel. 
3

•S 2510 IS 

1 ‘‘(d) APPLICATION WITH OTHER CREDITS.—The 

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

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

4 ‘‘(1) the regular tax for the taxable year re5 duced by the sum of the credits allowable under sub6 part A and sections 27, 29, 30, and 30A, over 

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

8 year. 

9 ‘‘(e) BASIS REDUCTION.—For purposes of this title, 

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

11 of the cost of such property taken into account under sub12 section (a). 

13 ‘‘(f) NO DOUBLE BENEFIT.—No deduction shall be 

14 allowed under section 179A with respect to any property 

15 with respect to which a credit is allowed under subsection 

16 (a). 

17 ‘‘(g) 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 (d) 

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.
4

•S 2510 IS 

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

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

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

7 such regulations as necessary to carry out the provisions 

8 of this section. 

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

10 any property placed in service after December 31, 2013.’’. 

11 (b) CONFORMING AMENDMENTS.—

12 (1) Section 1016(a) of such Code is amended 

13 by striking ‘‘and’’ at the end of paragraph (27), by 

14 striking the period at the end of paragraph (28) and 

15 inserting ‘‘, and’’, and by adding at the end the fol16 lowing new paragraph: 

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

18 30B(e).’’. 

19 (2) Section 55(c)(2) of such Code is amended 

20 by inserting ‘‘30B(d),’’ after ‘‘30(b)(3),’’. 

21 (3) The table of sections for subpart B of part 

22 IV of subchapter A of chapter 1 of such Code is 

23 amended by inserting after the item relating to sec24 tion 30A the following new item:

‘‘Sec. 30B. Hydrogen-powered vehicle refueling property credit.’’.
5

•S 2510 IS 

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

2 this section shall apply to property placed in service in 

3 taxable years beginning after the date of the enactment 

4 of this Act.

5 SEC. 2. EXCLUSION OF EARNINGS FROM HYDROGEN FUEL 

6 SALES. 

7 (a) IN GENERAL.—Part III of subchapter B of chap8 ter 1 of the Internal Revenue Code of 1986 (relating to 

9 items specifically excluded from gross income) is amended 

10 by inserting after section 136 the following new section: 

11 ‘‘SEC. 136A. INCOME FROM HYDROGEN FUEL SALES. 

12 ‘‘(a) EXCLUSION.—Gross income shall not include in13 come attributable to the sale of hydrogen fuel sold at retail 

14 for use in a hydrogen fuel cell vehicle. 

15 ‘‘(b) DEFINITION OF HYDROGEN FUEL CELL VEHI16 CLE.—For purposes of this section, the term ‘hydrogen 

17 fuel cell vehicle’ means a motor vehicle (as defined in sec18 tion 30(c)(2)) which is propelled by power derived from 

19 1 or more cells which convert chemical energy directly into 

20 electricity by combining oxygen with hydrogen fuel which 

21 is stored on board the vehicle in any form and may or 

22 may not require reformation prior to use. 

23 ‘‘(c) TERMINATION.—This section shall not apply to 

24 income attributable to sales after December 31, 2013.’’. 
6

•S 2510 IS 

1 (b) CONFORMING AMENDMENT.—The table of sec2 tions for subpart B of part III of subchapter B of chapter 

3 1 of such Code is amended by inserting after the item 

4 relating to section 136 the following new item:

‘‘Sec. 136A. Income from hydrogen fuel sales.’’.

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

6 this section shall apply to income received after December 

7 31, 2003, in taxable years ending after such date.

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