inserting ‘‘, plus’’, and by adding at the end thereof the
following new paragraph:
‘‘(13) the empowerment zone clean fuels credit
determined under section 1397B.’’.
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C of
such Code is amended by adding at the end thereof the
following new subsection:
‘‘(d) EMPOWERMENT
ZONE
CLEAN
FUELS
EX-
PENSES.—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 1397B.’’.
(d) CREDIT ALLOWED AGAINST REGULAR AND MINI-
MUM 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 EMPOWERMENT ZONE
CLEAN FUELS CREDIT.—
‘‘(A) IN GENERAL.—In the case of the em-
powerment 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 empower-
ment zone clean fuels credit).
‘‘(B) EMPOWERMENT ZONE CLEAN FUELS
CREDIT.—For purposes of this subsection, the
term ‘empowerment 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 empowerment zone clean fuels
credit’’ after ‘‘employment credit’’.
(e) LIMITATION ON CARRYBACK.—Subsection (d) of
section 39 of such Code is amended by adding at the end
thereof the following new paragraph:
‘‘(9) NO CARRYBACK OF EMPOWERMENT ZONE
CLEAN FUELS CREDIT BEFORE EFFECTIVE DATE.—
No portion of the unused business credit for any
taxable year which is attributable to the credit deter-
mined under section 1397B may be carried back to
any taxable year ending before the date of the enact-
ment of section 1397B.’’.
(f) DEDUCTION FOR CERTAIN UNUSED BUSINESS
CREDITS.—Subsection (c) of section 196 of such Code is
amended by striking ‘‘and’’ at the end of paragraph (6),
by striking the period at the end of paragraph (7) and
inserting ‘‘, and’’, and by adding after paragraph (7) the
following new paragraph:
‘‘(8) the empowerment zone clean fuels credit
determined under section 1397B.’’.
(g) CONFORMING AMENDMENTS.—
(1) Paragraph (3) of section 1394(b) of such
Code is amended by striking ‘‘section 1397B’’ each
place it appears and inserting ‘‘1397C’’.
(2) Paragraph (3) of section 1394(f) of such
Code is amended by striking ‘‘sections 1397B and
1397C’’ and inserting ‘‘sections 1397C and 1397D’’.
(3) Subsection (e) of section 1400 of such Code
is amended by striking ‘‘section 1397B’’ and insert-
ing ‘‘section 1397C’’.
(4) Subsection (c) of section 1400B of such
Code is amended by striking ‘‘section 1397B’’ both
places it appears and inserting ‘‘section 1397C’’.
(h) CLERICAL AMENDMENTS.—
(1) The table of subparts for part III of sub-
chapter U of chapter 1 of such Code is amended by
striking the last item and inserting the following:
‘‘SUBPART C. Incentives for clean-fuel vehicles.
‘‘SUBPART D. General provisions.’’.
(2) The table of sections for subpart D, as
amended by paragraph (1) of this subsection, is
amended to read as follows:
‘‘Sec. 1397C. Enterprise zone business defined.
‘‘Sec. 1397D. Qualified zone property defined.’’.
(i) EFFECTIVE DATE.—The amendments made by
this section shall apply to costs paid or incurred after De-
cember 31, 1997.
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