lating to additional incentives for empowerment zones) is
amended—
(1) by redesignating subpart D as subpart E,
(2) by redesignating sections 1397C, 1397D,
1397E, and 1397F as sections 1397D, 1397E,
1397F, and 1397G, respectively, and
(3) by inserting after subpart C the following
new subpart:
‘‘Subpart D—Incentives for Clean-
Fuel Vehicles
‘‘Sec. 1397C. Incentives for clean-fuel vehicles.
‘‘SEC. 1397C. INCENTIVES FOR CLEAN-FUEL VEHICLES.
‘‘(a) ZONE CLEAN FUELS CREDIT.—For purposes of
section 38, in the case of an eligible enterprise zone busi-
ness, the amount of the zone clean fuels credit determined
under this section for the taxable year is the sum of—
‘‘(1) the zone clean-fuel property credit, and
‘‘(2) the zone clean-burning fuel use credit.
‘‘(b) ZONE CLEAN-FUEL PROPERTY CREDIT.—
‘‘(1) IN GENERAL.—The zone clean-fuel prop-
erty credit is the cost of—
‘‘(A) qualified clean-fuel vehicle property,
plus
‘‘(B) qualified clean-fuel vehicle refueling
property.
The credit under this section with respect to any
property shall be allowed for the taxable year in
which such property is placed in service by the eligi-
ble enterprise zone business.
‘‘(2) LIMITATIONS.—
‘‘(A) QUALIFIED
CLEAN-FUEL
VEHICLE
PROPERTY.—The cost which may be taken into
account under paragraph (1)(A) with respect to
any motor vehicle shall not exceed—
‘‘(i) $2,000 in the case of a motor ve-
hicle not described in clause (ii) or (iii),
‘‘(ii) $5,000 in the case of any truck
or van with a gross vehicle weight rating
greater than 10,000 pounds but not great-
er than 26,000 pounds, or
‘‘(iii) $50,000 in the case of—
‘‘(I) a truck or van with a gross
vehicle weight rating greater than
26,000 pounds, or
‘‘(II) any bus which has a seating
capacity of at least 20 adults (not in-
cluding the driver).
‘‘(B) QUALIFIED
CLEAN-FUEL
VEHICLE
REFUELING PROPERTY.—
‘‘(i) IN
GENERAL.—The aggregate
cost which may be taken into account
under paragraph (1)(B) with respect to
qualified clean-fuel vehicle refueling prop-
erty placed in service by the eligible enter-
prise zone business during the taxable year
at a location shall not exceed the lesser
of—
‘‘(I) $100,000, or
‘‘(II) the cost of such property
reduced by the amount described in
clause (ii).
‘‘(ii) REDUCTION FOR AMOUNTS PRE-
VIOUSLY TAKEN INTO ACCOUNT.—For pur-
poses of clause (i)(II), the amount de-
scribed in this clause is the sum of—
‘‘(I) the aggregate amount taken
into account under paragraph (1)(B)
for all preceding taxable years, and
‘‘(II) the aggregate amount taken
into 
account 
under 
section
179A(a)(1)(B) by the taxpayer (or
any related person or predecessor)
with respect to property placed in
service at such location for all pre-
ceding taxable years.
‘‘(iii) SPECIAL RULES.—For purposes
of this subparagraph, the provisions of
subparagraphs (B) and (C) of section
179A(b)(2) shall apply.
‘‘(c) ZONE CLEAN-BURNING FUEL USE CREDIT.—
The zone clean-burning fuel use credit is the amount equal
to 50 cents for each gasoline gallon equivalent of clean-
burning fuel used by an eligible enterprise zone business
during the taxable year to propel qualified clean-fuel vehi-
cle property.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) ELIGIBLE ENTERPRISE ZONE BUSINESS.—
The term ‘eligible enterprise zone business’ means—
‘‘(A) an enterprise zone business (as de-
fined in section 1397D) located within an area
that is an empowerment zone or enterprise
community and that is within a nonattainment
area (within the meaning of section 171 of the
Clean Air Act (42 U.S.C. 7501)), and
‘‘(B) a trade or business located outside of
an empowerment zone or enterprise community,
but only with respect to qualified clean-fuel ve-
hicle property used substantially within an area
that is an empowerment zone or enterprise
community and that is within a nonattainment
area (within the meaning of section 171 of the
Clean Air Act (42 U.S.C. 7501)).
For purposes of this paragraph, section 1397D shall
be applied by substituting ‘empowerment zone or en-
terprise community’ for ‘empowerment zone’ each
place it appears.
‘‘(2) CLEAN-BURNING FUEL.—The term ‘clean-
burning fuel’ has the meaning given to such term by
section 179A, except that such term includes com-
pressed natural gas.
‘‘(3) QUALIFIED CLEAN-FUEL VEHICLE PROP-
ERTY.—The term ‘qualified clean-fuel vehicle prop-
erty’ has the meaning given to such term by section
179A(c) without regard to paragraph (3) thereof,
except that such term does not include property that
is a motor vehicle propelled by a fuel that is not a
clean-burning fuel.
‘‘(4) QUALIFIED
CLEAN-FUEL
VEHICLE
RE-
FUELING PROPERTY.—The term ‘qualified clean-fuel
vehicle refueling property’ has the meaning given to
such term by section 179A(d).
‘‘(5) GASOLINE
GALLON
EQUIVALENT.—The
term ‘gasoline gallon equivalent’ means, with respect
to any clean burning fuel, the amount (determined
by the Secretary) of such fuel having a Btu content
of 114,000.
‘‘(e) DENIAL OF DOUBLE BENEFIT.—No credit shall
be allowed under subsection (a) for any expense for which
a deduction or credit is allowed under any other provision
of this chapter.’’.
(b) RENEWAL COMMUNITIES.—Part III of sub-
chapter X of chapter 1 of the Internal Revenue Code of
1986 (relating to additional incentives for renewal commu-
nities) is amended by adding at the end the following new
section:
‘‘SEC. 1400K. RENEWAL COMMUNITY CLEAN FUELS CREDIT.
‘‘(a) 
IN
GENERAL.—For 
purposes 
of 
section
1397C—
‘‘(1) a renewal community shall be treated as
an empowerment zone,
‘‘(2) a renewal community business shall be
treated as an enterprise zone business, and
‘‘(3) qualified renewal property shall be treated
as qualified zone property.’’.
(c) CREDIT MADE PART OF GENERAL BUSINESS
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to current year business credit) is amended by strik-
ing ‘‘plus’’ at the end of paragraph (11), by striking the
period at the end of paragraph (12) and inserting ‘‘, plus’’,
and by adding at the end thereof the following new para-
graph:
‘‘(13) the zone clean fuels credit determined
under section 1397C.’’.
(d) DENIAL OF DOUBLE BENEFIT.—Section 280C of
such Code (relating to certain expenses for which credits
are allowable) is amended by adding at the end thereof
the following new subsection:
‘‘(d) ZONE CLEAN FUELS EXPENSES.—No deduction
shall be allowed for that portion of expenses for clean-
burning fuel otherwise allowable as a deduction for the
taxable year which is equal to the amount of the credit
determined for such taxable year under section 1397C.’’.
(e) CREDIT ALLOWED AGAINST REGULAR AND MIN-
IMUM TAX.—
(1) IN GENERAL.—Subsection (c) of section 38
of such Code (relating to limitation based on amount
of tax) is amended by redesignating paragraph (3)
as paragraph (4) and by inserting after paragraph
(2) the following new paragraph:
‘‘(3) SPECIAL RULES FOR ZONE CLEAN FUELS
CREDIT.—
‘‘(A) IN
GENERAL.—In the case of the
zone clean fuels credit—
‘‘(i) this section and section 39 shall
be applied separately with respect to the
credit, and
‘‘(ii) in applying paragraph (1) to the
credit—
‘‘(I) subparagraph (A) thereof
shall not apply, and
‘‘(II) the limitation under para-
graph (1) (as modified by subclause
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the
taxable year (other than the zone
clean fuels credit).
‘‘(B) ZONE
CLEAN
FUELS
CREDIT.—For
purposes of this subsection, the term ‘zone
clean fuels credit’ means the credit allowable
under subsection (a) by reason of section
1397B.’’.
(2) CONFORMING AMENDMENT.—Subclause (II)
of section 38(c)(2)(A)(ii) of such Code is amended
by inserting ‘‘or the zone clean fuels credit’’ after
‘‘employment credit’’.
(f) LIMITATION ON CARRYBACK.—Subsection (d) of
section 39 of such Code is amended by adding at the end
the following new paragraph:
‘‘(9) NO CARRYBACK OF ZONE CLEAN FUELS
CREDIT BEFORE EFFECTIVE DATE.—No portion of
the unused business credit for any taxable year
which is attributable to the credit determined under
section 1397C may be carried back to any taxable
year ending before the date of the enactment of sec-
tion 1397C.’’.
(g) DEDUCTION FOR CERTAIN UNUSED BUSINESS
CREDITS.—Subsection (c) of section 196 of such Code is
amended by striking ‘‘and’’ at the end of paragraph (7),
by striking the period at the end of paragraph (8) and
inserting ‘‘, and’’, and by adding after paragraph (8) the
following new paragraph:
‘‘(9) the empowerment zone clean fuels credit
determined under section 1397C.’’.
(h) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 1394(b) of such
Code is amended—
(A) by striking ‘‘section 1397D’’ and in-
serting ‘‘section 1397E’’, and
(B) by striking ‘‘section 1397D(a)(2)’’ and
inserting ‘‘section 1397E(a)(2)’’.
(2) Paragraph (3) of section 1394(b) of such
Code is amended—
(A) by striking ‘‘section 1397C’’ each place
it appears and inserting ‘‘section 1397D’’, and
(B) by striking ‘‘section 1397C(d)’’ and in-
serting ‘‘section 1397D(d)’’.
(3) Paragraph (3) of section 1394(f) of such
Code is amended by striking ‘‘sections 1397C and
1397D’’ both places it appears and inserting ‘‘sec-
tions 1397D and 1397E’’.
(4) Section 1397B(b)(1)(A)(ii) of such Code is
amended by striking ‘‘section 1397C’’ and inserting
‘‘section 1397D’’.
(5) Sections 1400(e), 1400B(c), and 1400G of
such Code are each amended by striking ‘‘section
1397C’’ each place it appears and inserting ‘‘section
1397D’’.
(6) Section 1400J(b) of such Code is amended
by striking ‘‘section 1397D’’ each place it appears
and inserting ‘‘section 1397E’’.
(7) Section 45D(d) of such Code is amended—
(A) in paragraph (2)(A)(v) by striking
‘‘section 1397C(e)’’ and inserting ‘‘section
1397D(e)’’, and
(B) in paragraph (3) by striking ‘‘section
1397C(d)’’ and inserting ‘‘section 1397D(d)’’.