I 
110TH CONGRESS 
2D SESSION 
H. R. 5746 
To amend the Internal Revenue Code of 1986 to establish the infrastructure 
foundation for the hydrogen economy, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 9, 2008 
Mr. LARSON of Connecticut (for himself, Mr. DENT, Mr. WYNN, Mr. INGLIS 
of South Carolina, Ms. DELAURO, Mr. DOYLE, Mr. HOLDEN, Mr. WAMP, 
Mr. TERRY, Mr. MCNULTY, and Mr. BUTTERFIELD) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to establish 
the infrastructure foundation for the hydrogen economy, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Hydrogen Tax Incen-
tives Act of 2008’’. 
SEC. 2. HYDROGEN INFRASTRUCTURE AND FUEL COSTS. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 (relating to foreign tax credit, etc.) is amended by 
adding at the end the following new section: 
‘‘SEC. 
30D. 
HYDROGEN 
INFRASTRUCTURE 
AND 
FUEL 
COSTS. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of— 
‘‘(1) the hydrogen infrastructure costs credit 
determined under subsection (b), and 
‘‘(2) the hydrogen fuel costs credit determined 
under subsection (c). 
‘‘(b) HYDROGEN INFRASTRUCTURE COSTS CRED-
IT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the hydrogen infrastructure costs credit deter-
mined under this subsection with respect to each eli-
gible hydrogen production and distribution facility of 
the taxpayer is an amount equal to 30 percent of so 
much of the infrastructure costs for the taxable year 
as does not exceed $200,000 with respect to such fa-
cility. 
‘‘(2) ELIGIBLE
HYDROGEN
PRODUCTION
AND 
DISTRIBUTION FACILITY.—For purposes of this sub-
section, the term ‘eligible hydrogen production and 
distribution facility’ means a hydrogen production 
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and distribution facility which is placed in service 
after December 31, 2007. 
‘‘(c) HYDROGEN FUEL COSTS CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the hydrogen fuel costs credit determined under 
this subsection with respect to each eligible hydrogen 
device of the taxpayer is an amount equal to the 
qualified hydrogen expenditure amounts with respect 
to such device. 
‘‘(2) QUALIFIED
HYDROGEN
EXPENDITURE 
AMOUNT.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
hydrogen expenditure amount’ means, with re-
spect to each eligible hydrogen energy conver-
sion device of the taxpayer with a production 
capacity of not more than 25 kilowatts of elec-
tricity, the lesser of— 
‘‘(i) 30 percent of the amount paid or 
incurred by the taxpayer during the tax-
able year for hydrogen which is consumed 
by such device, and 
‘‘(ii) $2,000. 
In the case of any device which is not owned by 
the taxpayer at all times during the taxable 
year, the $2,000 amount in clause (ii) shall be 
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‘‘(ii) is wholly owned by the taxpayer 
during the taxable year. 
If an owner of a device (determined without re-
gard to this subparagraph) provides to the pri-
mary user of such device a written statement 
that such user shall be treated as the owner of 
such device for purposes of this section, then 
such user (and not such owner) shall be so 
treated. 
‘‘(B) HYDROGEN
ENERGY
CONVERSION 
DEVICE.—The term ‘hydrogen energy conver-
sion device’ means— 
‘‘(i) any electrochemical device which 
converts hydrogen into electricity, and 
‘‘(ii) any combustion engine which 
burns hydrogen as a fuel. 
‘‘(d) REDUCTION IN BASIS.—For purposes of this 
subtitle, if a credit is allowed under this section for any 
expenditure with respect to any property, the increase in 
the basis of such property which would (but for this para-
graph) result from such expenditure shall be reduced by 
the amount of the credit so allowed. 
‘‘(e) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—So much of the credit 
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which would be allowed under subsection (a) for any 
taxable year (determined without regard to this sub-
section) that is attributable to amounts which (but 
for subsection (g) would be allowed as a deduction 
under section 162 shall be treated as a credit listed 
in section 38(b) for such taxable year (and not al-
lowed under subsection (a)). 
‘‘(2) PERSONAL
CREDIT.—The credit allowed 
under subsection (a) (after the application of para-
graph (1)) for any taxable year shall not exceed the 
excess (if any) of— 
‘‘(A) the regular tax liability (as defined in 
section 26(b)) reduced by the sum of the credits 
allowable under subpart A and sections 27, 30, 
30B, and 30C, over 
‘‘(B) the tentative minimum tax for the 
taxable year. 
‘‘(f) DENIAL OF DOUBLE BENEFIT.—The amount of 
any deduction or other credit allowable under this chapter 
for any cost taken into account in determining the amount 
of the credit under subsection (a) shall be reduced by the 
amount of such credit attributable to such cost. 
‘‘(g) RECAPTURE.—The Secretary shall, by regula-
tions, provided for recapturing the benefit of any credit 
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allowable under subsection (a) with respect to any prop-
erty which ceases to be property eligible for such credit. 
‘‘(h) ELECTION NOT TO TAKE CREDIT.—No credit 
shall be allowed under subsection (a) for any property if 
the taxpayer elects not to have this section apply to such 
property. 
‘‘(i) REGULATIONS.—The Secretary shall prescribe 
such regulations as necessary to carry out the provisions 
of this section. 
‘‘(j) TERMINATION.—This section shall not apply to 
any costs paid or incurred after the end of the 3-year pe-
riod beginning on the date of the enactment of this sec-
tion.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of the Internal Revenue Code 
of 1986 is amended by striking ‘‘plus’’ at the end of 
paragraph (30), by striking the period at the end of 
paragraph (31) and inserting ‘‘plus’’, and by adding 
at the end the following new paragraph: 
‘‘(32) the portion of the hydrogen infrastruc-
ture and fuel credit to which section 30D(e)(1) ap-
plies.’’. 
(2) Section 55(c)(3) of such Code is amended 
by inserting ‘‘30D(e)(2),’’ after ‘‘30C(d)(2),’’. 
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(3) Section 1016(a) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(38) to the extent provided in section 
30D(d).’’. 
(4) Section 6501(m) of such Code is amended 
by inserting ‘‘30D(h),’’ after ‘‘30C(e)(5),’’. 
(5) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 30C the following new item: 
‘‘Sec. 30D. Hydrogen infrastructure and fuel costs.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2007, in taxable years ending after such 
date. 
Æ 
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