I 
108TH CONGRESS 
1ST SESSION H. R. 2865
To amend the Internal Revenue Code of 1986 to provide a credit for qualified 
clean-fuel vehicles which are used in certain ozone nonattainment areas. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 24, 2003
Mr. CARDOZA (for himself, Mr. DOOLEY of California, and Mr. RADANOVICH) 
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 
a credit for qualified clean-fuel vehicles which are used 
in certain ozone nonattainment areas.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Clean Air Incentive 
Act of 2003’’. 
SEC. 2. CREDIT FOR QUALIFIED OZONE ATTAINMENT VEHI-
CLE PROPERTY. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to other credits) is amended by adding at 
the end the following new section: 
‘‘SEC. 30B. CREDIT FOR QUALIFIED OZONE ATTAINMENT 
VEHICLE PROPERTY. 
‘‘(a) IN GENERAL.—Under regulations prescribed by 
the Secretary, there shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an 
amount equal to the cost of any qualified ozone attainment 
vehicle property placed in service by the taxpayer during 
the taxable year. 
‘‘(b) LIMITATION.—The cost which may be taken into 
account under subsection (a) with respect to any vehicle 
is—
‘‘(1) in the case of any vehicle not described in 
paragraph (2)—
‘‘(A) $2,750 if credit is allowed by reason 
of subsection (d)(1), 
‘‘(B) $3,500 if credit is allowed by reason 
of subsection (d)(2), and 
‘‘(C) $4,000 if credit is allowed by reason 
of subsection (d)(3), 
‘‘(2) in the case of any truck or van with a 
gross vehicle weight rating greater than 10,000 
pounds—
‘‘(A) $7,000 if credit is allowed by reason 
of subsection (d)(1), 
‘‘(B) $8,500 if credit is allowed by reason 
of subsection (d)(2), 
‘‘(C) $10,000 if credit is allowed by reason 
of subsection (d)(3). 
‘‘(c) APPLICATION WITH OTHER CREDITS.—The 
credit allowed by subsection (a) for any taxable year shall 
not exceed the excess (if any) of— 
‘‘(1) the regular tax for the taxable year re-
duced by the sum of the credits allowable under sub-
part A and sections 27, 29, and 30, over 
‘‘(2) the tentative minimum tax for the taxable 
year. 
‘‘(d) QUALIFIED
OZONE
ATTAINMENT
VEHICLE 
PROPERTY.—For purposes of this section, the term ‘quali-
fied ozone attainment vehicle property’ means any quali-
fied clean-fuel vehicle property (as defined in section 
179A(c)) if substantially all of the use of such property 
is in an area designated by the Administrator of the Envi-
ronmental Protection Agency as—
‘‘(1) a serious ozone nonattainment area, 
‘‘(2) a severe ozone nonattainment area, or 
‘‘(3) an extreme ozone nonattainment area. 
‘‘(e) SPECIAL RULES.—
‘‘(1) BASIS
REDUCTION.—The basis of any 
property for which a credit is allowable under sub-
section (a) shall be reduced by the amount of such 
credit (determined without regard to subsection (c). 
‘‘(2) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
any property which ceases to be property eligible for 
such credit. 
‘‘(3) 
PROPERTY
USED
OUTSIDE
UNITED 
STATES, ETC., NOT QUALIFIED.—No credit shall be 
allowed under subsection (a) with respect to any 
property referred to in section 50(b) or with respect 
to the portion of the cost of any property taken into 
account under section 179. 
‘‘(4) ELECTION
TO
NOT
TAKE
CREDIT.—No 
credit shall be allowed under subsection (a) for any 
vehicle if the taxpayer elects to not have this section 
apply to such vehicle.’’. 
(b) COORDINATION WITH DEDUCTION FOR CLEAN-
FUEL VEHICLES.—Subsection (b) of section 179A of such 
Code (relating to limitations) is amended by adding at the 
end the following new paragraph: 
‘‘(3) COORDINATION WITH CREDIT FOR QUALI-
FIED
OZONE
ATTAINMENT
VEHICLE
PROPERTY.—
The cost which may be taken into account under 
subsection (a)(1)(A) with respect to any motor vehi-
cle shall not exceed the excess (if any) of—
‘‘(A) the cost which would be so taken into 
account without regard to this paragraph, over 
‘‘(B) any credit allowed with respect to 
such vehicle under section 30B.’’. 
(c) CONFORMING AMENDMENTS.—
(1) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item:
‘‘Sec. 30B. Credit for qualified ozone attainment vehicle prop-
erty.’’.
(2) Section 1016(a) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (27), by 
striking the period at the end of paragraph (28) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(29) to the extent provided in section 
30B(e)(1).’’. 
(3) Section 53(d)(1)(B)(iii) of such Code is 
amended to read as follows: 
‘‘(iii) SPECIAL
RULE.—The adjusted 
net minimum tax for the taxable year shall 
be increased by the sum of—
‘‘(I) the amount of the credit not 
allowed under section 29 (relating to 
credit for producing fuel from a non-
conventional source) solely by reason 
of 
the 
application 
of 
section 
29(b)(6)(B), 
‘‘(II) the amount of the credit 
not allowed under section 30 solely by 
reason of the application of section 
30(b)(3)(B), and 
‘‘(III) the amount of the credit 
not allowed under section 30B solely 
by reason of the application of section 
30B(c)(2).’’. 
(4) Section 55(c)(2) of such Code is amended 
by inserting ‘‘30B(c),’’ after ‘‘30(b)(3),’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2003.
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