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106TH CONGRESS
1ST SESSION
H. R. 260
To amend the Internal Revenue Code of 1986 to provide additional incentives
for the use of clean-fuel vehicles by enterprise zone businesses within
empowerment zones and enterprise communities.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 6, 1999
Mr. SERRANO 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 provide
additional incentives for the use of clean-fuel vehicles
by enterprise zone businesses within empowerment zones
and enterprise communities.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CLEAN-FUEL VEHICLES USED BY ENTERPRISE
ZONE BUSINESSES.
(a) IN GENERAL.—Part III of subchapter U of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
additional incentives for empowerment zones) is amended
by redesignating subpart C as subpart D, by redesignating
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sections 1397B and 1397C as sections 1397C and 1397D,
respectively, and by inserting after subpart B the following
new subpart:
‘‘Subpart C—Incentives for Clean-
Fuel Vehicles
‘‘Sec. 1397B. Incentives for clean-fuel vehicles.
‘‘SEC. 1397B. INCENTIVES FOR CLEAN-FUEL VEHICLES.
‘‘(a) ZONE CLEAN FUELS CREDIT.—For purposes of
section 38, the amount of the zone clean fuels credit deter-
mined 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,
paid or incurred for the taxable year by an eligible
enterprise zone business.
‘‘(2) LIMITATIONS.—
‘‘(A) QUALIFIED
CLEAN-FUEL
VEHICLE
PROPERTY.—The cost which may be taken into
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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 during the taxable
year at a location shall not exceed the less-
er of—
‘‘(I) $100,000, or
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‘‘(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 preced-
ing 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
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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 1397C) 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 1379C 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