‘‘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 
taxable year an amount equal to 50 percent of the amount 
paid or incurred by the taxpayer during the taxable year 
for the installation of qualified clean-fuel vehicle refueling 
property. 
‘‘(b) LIMITATION.—
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a)—
‘‘(A) with respect to any retail clean-fuel 
vehicle refueling property, shall not exceed 
$30,000, and 
‘‘(B) with respect to any residential clean-
fuel vehicle refueling property, shall not exceed 
$1,000. 
‘‘(2) PHASEOUT.—
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), in the case of any qualified 
clean-fuel vehicle refueling property placed in 
service after December 31, 2007, the limit oth-
erwise applicable under paragraph (1) shall be 
reduced by—
‘‘(i) 25 percent in the case of any ve-
hicle placed in service in calendar year 
2008, and 
‘‘(ii) 50 percent in the case of any ve-
hicle placed in service in calendar year 
2009. 
‘‘(B) HYDROGEN PROPERTY.—In the case 
of any qualified clean-fuel vehicle refueling 
property relating to hydrogen placed in service 
after December 31, 2011, the limit otherwise 
applicable under paragraph (1) shall be reduced 
by—
‘‘(i) 25 percent in the case of any ve-
hicle placed in service in calendar year 
2012, and 
‘‘(ii) 50 percent in the case of any ve-
hicle placed in service in calendar year 
2013. 
‘‘(c) YEAR CREDIT ALLOWED.—The credit allowed 
under subsection (a) shall be allowed in the taxable year 
in which the qualified clean-fuel vehicle refueling property 
is placed in service by the taxpayer. 
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED
CLEAN-FUEL
VEHICLE
RE-
FUELING PROPERTY.—The term ‘qualified clean-fuel
vehicle refueling property’ has the same meaning 
given such term by section 179A(d). 
‘‘(2) RESIDENTIAL CLEAN-FUEL VEHICLE RE-
FUELING PROPERTY.—The term ‘residential clean-
fuel vehicle refueling property’ means qualified 
clean-fuel vehicle refueling property which is in-
stalled on property which is used as the principal 
residence (within the meaning of section 121) of the 
taxpayer. 
‘‘(3) RETAIL CLEAN-FUEL VEHICLE REFUELING 
PROPERTY.—The term ‘retail clean-fuel vehicle re-
fueling property’ means qualified clean-fuel vehicle 
refueling property which is installed on property 
(other than property described in paragraph (2)) 
used in a trade or business of the taxpayer. 
‘‘(e) APPLICATION WITH OTHER CREDITS.—The 
credit allowed under 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, 30, and 30B, over 
‘‘(2) the tentative minimum tax for the taxable 
year. 
‘‘(f) BASIS REDUCTION.—For purposes of this title, 
the basis of any property shall be reduced by the portion
of the cost of such property taken into account under sub-
section (a). 
‘‘(g) NO DOUBLE BENEFIT.—No deduction shall be 
allowed under section 179A with respect to any property 
with respect to which a credit is allowed under subsection 
(a). 
‘‘(h) REFUELING PROPERTY INSTALLED FOR TAX-
EXEMPT ENTITIES.—In the case of qualified clean-fuel ve-
hicle refueling property installed on property owned or 
used by an entity exempt from tax under this chapter, the 
person which installs such refueling property for the entity 
shall be treated as the taxpayer with respect to the refuel-
ing property for purposes of this section (and such refuel-
ing property shall be treated as retail clean-fuel vehicle 
refueling property) and the credit shall be allowed to such 
person, but only if the person clearly discloses to the entity 
in any installation contract the specific amount of the 
credit allowable under this section. 
‘‘(i) CARRYFORWARD ALLOWED.—
‘‘(1) IN GENERAL.—If the credit amount allow-
able under subsection (a) for a taxable year exceeds 
the amount of the limitation under subsection (e) for 
such taxable year (referred to as the ‘unused credit 
year’ in this subsection), such excess shall be allowed
as a credit carryforward for each of the 20 taxable 
years following the unused credit year. 
‘‘(2) RULES.—Rules similar to the rules of sec-
tion 39 shall apply with respect to the credit 
carryforward under paragraph (1). 
‘‘(j) SPECIAL RULES.—Rules similar to the rules of 
paragraphs (4) and (5) of section 179A(e) shall apply. 
‘‘(k) REGULATIONS.—The Secretary shall prescribe 
such regulations as necessary to carry out the provisions 
of this section. 
‘‘(l) TERMINATION.—This section shall not apply to 
any property placed in service—
‘‘(1) in the case of property relating to hydro-
gen, after December 31, 2013, and 
‘‘(2) in the case of any other property, after 
December 31, 2009.’’. 
(b) INCENTIVE FOR PRODUCTION OF HYDROGEN AT 
QUALIFIED CLEAN-FUEL VEHICLE REFUELING PROP-
ERTY.—Section 179A(d) (defining qualified clean-fuel ve-
hicle refueling property) is amended by adding at the end 
the following new flush sentence: 
‘‘In the case of clean-burning fuel which is hydrogen pro-
duced from another clean-burning fuel, paragraph (3)(A) 
shall be applied by substituting ‘production, storage, or
dispensing’ for ‘storage or dispensing’ both places it ap-
pears.’’. 
(c) 
CONFORMING
AMENDMENTS.—(1) 
Section 
1016(a), as amended by this Act, is amended by striking 
‘‘and’’ at the end of paragraph (28), by striking the period 
at the end of paragraph (29) and inserting ‘‘, and’’, and 
by adding at the end the following new paragraph: 
‘‘(30) to the extent provided in section 
30C(f).’’. 
(2) Section 55(c)(2), as amended by this Act, is 
amended by inserting ‘‘30C(e),’’ after ‘‘30B(e)’’. 
(3) The table of sections for subpart B of part IV 
of subchapter A of chapter 1, as amended by this Act, 
is amended by inserting after the item relating to section 
30B the following new item:
‘‘Sec. 30C. Clean-fuel vehicle refueling property credit.’’.
(d) 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. 6. 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 40 the following 
new section:
‘‘SEC. 40A. 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—
2003 .........................................................................................
30 cents
2004 .........................................................................................
40 cents
2005 and 2006 .........................................................................
50 cents
2007 .........................................................................................
40 cents
2008 .........................................................................................
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—
2003 .........................................................................................
30 cents
2004 .........................................................................................
40 cents
2005 through 2011 ..................................................................
50 cents
2012 .........................................................................................
40 cents
2013 .........................................................................................
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, 2008. 
‘‘(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, 2013.’’. 
(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 (14), 
by striking the period at the end of paragraph (15) and 
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(16) the alternative fuel retail sales credit de-
termined under section 40A(a).’’. 
(c) TRANSITIONAL RULE.—Section 39(d) (relating to 
transitional rules) is amended by adding at the end the 
following new paragraph: 
‘‘(11) NO CARRYBACK OF SECTION 40A CREDIT 
BEFORE EFFECTIVE DATE.—No portion of the un-
used business credit for any taxable year which is 
attributable to the alternative fuel retail sales credit 
determined under section 40A(a) may be carried 
back to a taxable year ending before the date of the 
enactment of such section.’’.
(d) 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 
40 the following new item:
‘‘Sec. 40A. Credit for retail sale of alternative fuels as motor vehicle fuel.’’.
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold at retail after the date 
of the enactment of this Act, in taxable years ending after 
such date. 
SEC. 7. 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, 2004, 
and annually thereafter.
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