SEC. 2. CLEAN-FUEL CREDIT WITH RESPECT TO BUSI-
NESSES 
LOCATED 
IN 
NONATTAINMENT 
AREAS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45S. CLEAN-FUEL CREDIT WITH RESPECT TO BUSI-
NESSES 
LOCATED 
IN 
NONATTAINMENT 
AREAS. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an eligible business the clean-fuel credit deter-
mined under this section for the taxable year is the sum 
of— 
‘‘(1) the clean-fuel property credit, plus 
‘‘(2) the clean-burning fuel use credit. 
‘‘(b) CLEAN-FUEL PROPERTY CREDIT.— 
‘‘(1) IN
GENERAL.—The clean-fuel property 
credit is the sum of— 
‘‘(A) qualified vehicle property costs, plus 
‘‘(B) qualified refueling property costs. 
‘‘(2) QUALIFIED VEHICLE PROPERTY COSTS.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘qualified vehicle property 
costs’ means the amount paid or incurred by 
the eligible business for qualified clean-fuel ve-
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hicle property which is placed in service during 
the taxable year by the eligible business and 
substantially all of the use of which is in a non-
attainment area. 
‘‘(B) LIMITATION.—The amount which 
may be taken into account under subparagraph 
(A) with respect to any motor vehicle shall not 
exceed— 
‘‘(i) $8,000, in the case of a motor ve-
hicle with a gross vehicle weight rating of 
not more than 8,500 pounds, 
‘‘(ii) $20,000, in the case of a motor 
vehicle with a gross vehicle weight rating 
of more than 8,500 pounds but not more 
than 14,000 pounds, 
‘‘(iii) $40,000, in the case of a motor 
vehicle with a gross vehicle weight rating 
of more than 14,000 pounds but not more 
than 26,000 pounds, and 
‘‘(iv) $80,000, in the case of a motor 
vehicle with a gross vehicle weight rating 
of more than 26,000 pounds. 
‘‘(C) QUALIFIED
CLEAN-FUEL
VEHICLE 
PROPERTY.—The term ‘qualified clean-fuel ve-
hicle property’ shall have the meaning given to 
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such term by section 179A(c) (as in effect be-
fore its repeal by Public Law 113–295 and 
without regard to paragraphs (1)(A) and (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. 
‘‘(3) 
QUALIFIED
REFUELING
PROPERTY 
COSTS.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘qualified refueling property 
costs’ means amounts paid or incurred by the 
eligible business for qualified clean-fuel vehicle 
refueling property (as defined by section 
179A(d) (as in effect before its repeal by Public 
Law 113–295)) which is placed in service in a 
nonattainment area during the taxable year by 
the eligible business. 
‘‘(B) LIMITATION.— 
‘‘(i) IN
GENERAL.—The aggregate 
cost which may be taken into account 
under subparagraph (A) with respect to 
qualified clean-fuel vehicle refueling prop-
erty placed in service by the eligible busi-
ness during the taxable year at a location 
shall not exceed the lesser of— 
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‘‘(I) $150,000, 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) (as in effect before its 
repeal by Public Law 113–295) by the 
taxpayer (or any related person or 
predecessor) with respect to property 
placed in service at such location for 
all preceding taxable years. 
‘‘(iii) SPECIAL RULES.—For purposes 
of this subparagraph, the provisions of 
subparagraphs (B) and (C) of section 
179A(b)(2) (as in effect before its repeal 
by Public Law 113–295) shall apply. 
‘‘(c) CLEAN-BURNING FUEL USE CREDIT.— 
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‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the 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 business 
during the taxable year to propel qualified clean-fuel 
vehicle property. 
‘‘(2) CLEAN-BURNING FUEL.—For purposes of 
paragraph (1), the term ‘clean-burning fuel’ has the 
meaning given to such term by section 179A (as in 
effect before its repeal by Public Law 113–295), ex-
cept that such term includes compressed natural gas 
and biodiesel (as defined by section 40A(d)(1)). 
‘‘(3) GASOLINE
GALLON
EQUIVALENT.—For 
purposes of paragraph (1), 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. 
‘‘(d) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) ELIGIBLE BUSINESS.—The term ‘eligible 
business’ means— 
‘‘(A) a qualified business entity or a quali-
fied proprietorship (as such terms are defined 
by section 1397C, determined by substituting 
‘nonattainment area’ for ‘empowerment zone’ 
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and ‘enterprise zone’ each place it appears), 
and 
‘‘(B) a trade or business located outside of 
a nonattainment area, but only with respect to 
qualified clean-fuel vehicle property used sub-
stantially within a nonattainment area. 
‘‘(2) NONATTAINMENT AREA.—The term ‘non-
attainment area’ shall have the meaning given to 
such term by section 171 of the Clean Air Act (42 
U.S.C. 7501). 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—Except as pro-
vided in section 30B(d)(4), 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 chap-
ter. 
‘‘(f) RECAPTURE.—The Secretary shall, by regula-
tions, provide for recapturing the benefit under any credit 
allowable under subsection (a) with respect to any prop-
erty substantially all of the use of which is not in a non-
attainment area.’’. 
(b) 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 (35), by striking the 
period at the end of paragraph (36) and inserting ‘‘, plus’’, 
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and by adding at the end thereof the following new para-
graph: 
‘‘(37) the clean-fuel credit determined under 
section 45S.’’. 
(c) 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: 
‘‘(j) 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 45S.’’. 
(d) CREDIT ALLOWED AGAINST REGULAR AND MIN-
IMUM TAX.—Subparagraph (B) of section 38(c)(4) of 
such Code (relating to specified credits) is amended by 
striking ‘‘and’’ at the end of clause (x), by striking the 
period at the end of clause (xi) and inserting ‘‘, and’’, and 
by inserting after clause (xi) the following: 
‘‘(xii) the credit determined under sec-
tion 45S.’’. 
(e) DEDUCTION FOR CERTAIN UNUSED BUSINESS 
CREDITS.—Subsection (c) of section 196 of such Code is 
amended by striking ‘‘and’’ at the end of paragraph (13), 
by striking the period at the end of paragraph (14) and 
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inserting ‘‘, and’’, and by adding after paragraph (14) the 
following new paragraph: 
‘‘(15) the clean fuels credit determined under 
section 45S.’’. 
(f) CONFORMING AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of chapter 
1 of such Code is amended by inserting after the item 
relating to section 45R the following new item: 
‘‘Sec. 45S. Clean-fuel credit with respect to businesses located in nonattainment 
areas.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2016. 
SEC. 3. CREDIT FOR HYBRID VEHICLES PLACED IN SERV-
ICE IN NONATTAINMENT AREAS. 
(a) IN GENERAL.—Subsection (d) of section 30B of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(4) VEHICLES PLACED IN SERVICE IN NON-
ATTAINMENT AREA AFTER 2016.— 
‘‘(A) IN GENERAL.—No amount shall be 
allowed as a credit determined under this sub-
section for any taxable year beginning after 
2016 with respect to a new qualified hybrid 
motor vehicle unless such vehicle is placed in 
service by an eligible business and substantially 
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all of the use of which is in a nonattainment 
area. 
‘‘(B) RECAPTURE.—The Secretary shall, 
by regulations, provide for recapturing the ben-
efit under any credit allowable under subsection 
(a) by reason of subparagraph (A) with respect 
to any property substantially all of the use of 
which is not in a nonattainment area. 
‘‘(C) PHASEOUT NOT TO APPLY.—For pur-
poses of this subsection, subsection (f) shall not 
apply. 
‘‘(D) DEFINITIONS.—For purposes of this 
subsection, the terms ‘eligible business’ and 
‘nonattainment area’ have the meanings given 
such terms by section 45S(d).’’. 
(b) EXTENSION OF CREDIT FOR HYBRID VEHICLES 
PLACED IN SERVICE IN NONATTAINMENT AREAS.—Para-
graph (3) of section 30(k) of such Code is amended to 
read as follows: 
‘‘(3) in the case of a new qualified hybrid motor 
vehicle (as described in subsection (d)(2)(B))— 
‘‘(A) December 31, 2009, and before Janu-
ary 1, 2017, or 
‘‘(B) December 31, 2016, and before Jan-
uary 1, 2022.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2016. 
Æ 
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