‘‘(1) LIMITATION ACCORDING TO TYPE OF VE-
HICLE.—The amount of the credit allowed under 
subsection (a) for any vehicle shall not exceed the 
greatest of the following amounts applicable to such 
vehicle: 
‘‘(A) In the case of a vehicle which con-
forms to the Motor Vehicle Safety Standard 
500 prescribed by the Secretary of Transpor-
tation, as in effect on the date of the enactment 
of the New Apollo Energy Act of 2005, the less-
er of—
‘‘(i) 10 percent of the manufacturer’s 
suggested retail price of the vehicle, or 
‘‘(ii) $1,500. 
‘‘(B) In the case of a vehicle not described 
in subparagraph (A) with a gross vehicle weight 
rating not exceeding 8,500 pounds—
‘‘(i) $4,000, or 
‘‘(ii) $6,000, if such vehicle is—
‘‘(I) capable of a driving range of 
at least 100 miles on a single charge 
of the vehicle’s rechargeable batteries 
as measured pursuant to the urban 
dynamometer schedules under appen-
dix I to part 86 of title 40, Code of 
Federal Regulations, or 
‘‘(II) capable of a payload capac-
ity of at least 1,000 pounds. 
‘‘(C) In the case of a vehicle with a gross 
vehicle weight rating exceeding 8,500 but not 
exceeding 14,000 pounds, $10,000. 
‘‘(D) In the case of a vehicle with a gross 
vehicle weight rating exceeding 14,000 but not 
exceeding 26,000 pounds, $20,000. 
‘‘(E) In the case of a vehicle with a gross 
vehicle weight rating exceeding 26,000 pounds, 
$40,000.’’, and 
(B) by redesignating paragraph (3) as 
paragraph (2). 
(3) CONFORMING AMENDMENTS.—
(A) Section 53(d)(1)(B)(iii) is amended by 
striking ‘‘section 30(b)(3)(B)’’ and inserting 
‘‘section 30(b)(2)(B)’’. 
(B) Section 55(c)(3) is amended by strik-
ing ‘‘30(b)(3)’’ and inserting ‘‘30(b)(2)’’. 
(b) QUALIFIED BATTERY ELECTRIC VEHICLE.—
(1) IN GENERAL.—Section 30(c)(1)(A) (defin-
ing qualified electric vehicle) is amended to read as 
follows:
‘‘(A) which is—
‘‘(i) operated solely by use of a bat-
tery or battery pack, or 
‘‘(ii) powered primarily through the 
use of an electric battery or battery pack 
using a flywheel or capacitor which stores 
energy produced by an electric motor 
through regenerative braking to assist in 
vehicle operation,’’. 
(2) LEASED VEHICLES.—Section 30(c)(1)(C) is 
amended by inserting ‘‘or lease’’ after ‘‘use’’. 
(3) CONFORMING AMENDMENTS.—
(A) Subsections (a), (b)(2), and (c) of sec-
tion 30 are each amended by inserting ‘‘bat-
tery’’ after ‘‘qualified’’ each place it appears. 
(B) The heading of subsection (c) of sec-
tion 30 is amended by inserting ‘‘BATTERY’’ 
after ‘‘QUALIFIED’’. 
(C) The heading of section 30 is amended 
by inserting ‘‘BATTERY’’ after ‘‘QUALIFIED’’. 
(D) The item relating to section 30 in the 
table of sections for subpart B of part IV of 
subchapter A of chapter 1 is amended by in-
serting ‘‘battery’’ after ‘‘qualified’’.
(E) Section 179A(c)(3) is amended by in-
serting ‘‘battery’’ before ‘‘electric’’. 
(F) The heading of paragraph (3) of sec-
tion 179A(c) is amended by inserting ‘‘BAT-
TERY’’ before ‘‘ELECTRIC’’. 
(c) ADDITIONAL SPECIAL RULES.—
(1) IN GENERAL.—Section 30(d) (relating to 
special rules) is amended by adding at the end the 
following new paragraphs: 
‘‘(5) NO
DOUBLE
BENEFIT.—The amount of 
any deduction or other credit allowable under this 
chapter for any cost taken into account in com-
puting the amount of the credit determined under 
subsection (a) shall be reduced by the amount of 
such credit attributable to such cost. 
‘‘(6) PROPERTY USED BY TAX-EXEMPT ENTI-
TIES.—In the case of a credit amount which is al-
lowable with respect to a vehicle which is acquired 
by an entity exempt from tax under this chapter, the 
person which sells or leases such vehicle to the entity 
shall be treated as the taxpayer with respect to the 
vehicle for purposes of this section and the credit 
shall be allowed to such person, but only if the per-
son clearly discloses to the entity at the time of any
sale or lease the specific amount of any credit other-
wise allowable to the entity under this section. 
‘‘(7) CARRYBACK
AND
CARRYFORWARD
AL-
LOWED.—
‘‘(A) IN GENERAL.—If the credit amount 
allowable under subsection (a) for a taxable 
year exceeds the amount of the limitation under 
subsection (b)(2) for such taxable year (in this 
paragraph referred to as the ‘unused credit 
year’), such excess shall be allowed as a credit 
carryback for each of the 3 taxable years begin-
ning after the date of the enactment of this 
paragraph, which precede the unused credit 
year and a credit carryforward for each of the 
20 taxable years which succeed the unused 
credit year. 
‘‘(B) RULES.—Rules similar to the rules of 
section 39 shall apply with respect to the credit 
carryback and credit carryforward under sub-
paragraph (A).’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
179A(c) is amended by striking paragraph (3). 
(d) EXTENSION OF CREDIT.—Section 30(e) (relating 
to termination) is amended by striking ‘‘2006’’ and insert-
ing ‘‘2009’’.
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act, in taxable years 
ending after such date. 
SEC. 316. EXTENSION OF BIODIESEL TAX CREDITS. 
(a) IN GENERAL.—Sections 40A(e), 6426(c)(6), and 
6427(e)(3)(B) are each amended by stirking ‘‘2006’’ and 
inserting ‘‘2014’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 317. CREDIT FOR RETAIL SALE OF ALTERNATIVE 
FUELS AS MOTOR VEHICLE FUEL. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 (relating to business related cred-
its) is amended by inserting after section 40A the fol-
lowing new section: 
‘‘SEC. 40B. CREDIT FOR RETAIL SALE OF ALTERNATIVE 
FUELS AS MOTOR VEHICLE FUEL. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the alternative fuel retail sales credit for any taxable year 
is the applicable amount for each gasoline gallon equiva-
lent of alternative fuel sold at retail by the taxpayer during 
such year as a fuel to propel any qualified motor vehicle. 
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) APPLICABLE AMOUNT.—The term ‘applica-
ble amount’ means as follows: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the amount determined in 
accordance with the following table:
‘‘‘‘In the case of any taxable year 
ending in—
The applicable amount is—
2006 .........................................................................................
30 cents 
2007 .........................................................................................
40 cents 
2008 and 2009 .........................................................................
50 cents 
2010 .........................................................................................
40 cents 
2011 .........................................................................................
30 cents.
‘‘(B) HYDROGEN FUEL.—In the case of an 
alternative fuel which is hydrogen fuel, the 
amount determined in accordance with the fol-
lowing table:
‘‘‘‘In the case of any taxable year 
ending in—
The applicable amount is—
2006 .........................................................................................
30 cents 
2007 .........................................................................................
40 cents 
2008 through 2013 ..................................................................
50 cents 
2014 .........................................................................................
40 cents 
2015 .........................................................................................
30 cents.
‘‘(2) ALTERNATIVE
FUEL.—The term ‘alter-
native fuel’ means compressed natural gas, liquefied 
natural gas, liquefied petroleum gas, hydrogen, and 
any liquid at least 85 percent of the volume of which 
consists of methanol or ethanol. 
‘‘(3) GASOLINE
GALLON
EQUIVALENT.—The 
term ‘gasoline gallon equivalent’ means, with respect 
to any alternative fuel, the amount (determined by 
the Secretary) of such fuel having a Btu content of 
114,000.
‘‘(4) QUALIFIED MOTOR VEHICLE.—The term 
‘qualified motor vehicle’ means any motor vehicle (as 
defined in section 30(c)(2)) which meets any appli-
cable Federal or State emissions standards with re-
spect to each fuel by which such vehicle is designed 
to be propelled. 
‘‘(5) SOLD AT RETAIL.—
‘‘(A) IN GENERAL.—The term ‘sold at re-
tail’ means the sale, for a purpose other than 
resale, after manufacture, production, or impor-
tation. 
‘‘(B) USE TREATED AS SALE.—If any per-
son uses alternative fuel (including any use 
after importation) as a fuel to propel any quali-
fied alternative fuel motor vehicle (as defined in 
section 30B(d)(4)) before such fuel is sold at 
retail, then such use shall be treated in the 
same manner as if such fuel were sold at retail 
as a fuel to propel such a vehicle by such per-
son. 
‘‘(c) ELECTION TO PASS CREDIT.—A person which 
sells alternative fuel at retail may elect to pass the credit 
allowable under this section to the purchaser of such fuel 
or, in the event the purchaser is a tax-exempt entity or 
otherwise declines to accept such credit, to the person
which supplied such fuel, under rules established by the 
Secretary. 
‘‘(d) NO DOUBLE BENEFIT.—The amount of any de-
duction or other credit allowable under this chapter for 
any fuel taken into account in computing the amount of 
the credit determined under subsection (a) shall be re-
duced by the amount of such credit attributable to such 
fuel. 
‘‘(e) PASS-THRU IN THE CASE OF ESTATES AND 
TRUSTS.—Under regulations prescribed by the Secretary, 
rules similar to the rules of subsection (d) of section 52 
shall apply. 
‘‘(f) TERMINATION.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), this section shall not apply to any fuel 
sold at retail after December 31, 2011. 
‘‘(2) HYDROGEN FUEL.—In the case of an al-
ternative fuel which is hydrogen fuel, this section 
shall not apply to any fuel sold at retail after De-
cember 31, 2015.’’. 
(b) CREDIT TREATED AS BUSINESS CREDIT.—Sec-
tion 38(b) (relating to current year business credit) is 
amended by striking ‘‘plus’’ at the end of paragraph (18), 
by striking the period at the end of paragraph (19) and
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(20) the alternative fuel retail sales credit de-
termined under section 40B(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
is amended by inserting after the item relating to section 
40A the following new item:
‘‘Sec. 40B. Credit for retail sale of alternative fuels as motor vehicle fuel.’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold at retail after Decem-
ber 31, 2005, in taxable years ending after such date. 
SEC. 318. STUDY OF EFFECTIVENESS OF CERTAIN PROVI-
SIONS BY GAO. 
(a) STUDY.—The Comptroller General of the United 
States shall undertake an ongoing analysis of—
(1) the effectiveness of the alternative motor ve-
hicles and fuel incentives provisions under this Act, 
and 
(2) the recipients of the tax benefits contained 
in such provisions, including an identification of 
such recipients by income and other appropriate 
measurements. 
Such analysis shall quantify the effectiveness of such pro-
visions by examining and comparing the Federal Govern-
ment’s forgone revenue to the aggregate amount of energy
actually conserved and tangible environmental benefits 
gained as a result of such provisions. 
(b) REPORTS.—The Comptroller General of the 
United States shall report the analysis required under sub-
section (a) to Congress not later than December 31, 2006, 
and annually thereafter. 
SEC. 319. EXTENSION OF DEDUCTION FOR CERTAIN RE-
FUELING PROPERTY. 
(a) IN GENERAL.—Section 179A(f) (relating to ter-
mination) is amended by striking ‘‘2006’’ and inserting 
‘‘2009’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2005, in taxable years ending after such 
date. 
SEC. 320. CREDIT FOR INSTALLATION OF ALTERNATIVE 
FUELING STATIONS. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 (relating to foreign tax credit, etc.), 
as amended by this Act, is amended by adding at the end 
the following new section: 
‘‘SEC. 30C. CLEAN-FUEL VEHICLE REFUELING PROPERTY 
CREDIT. 
‘‘(a) CREDIT ALLOWED.—There shall be allowed as 
a credit against the tax imposed by this chapter for the