I 
109TH CONGRESS 
2D SESSION 
H. R. 5973 
To amend the Internal Revenue Code of 1986 to allow a credit for the 
installation of hydrogen fueling stations, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2006 
Mr. DENT (for himself, Mr. WYNN, Mr. INGLIS of South Carolina, and Mr. 
LARSON of Connecticut) 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 allow a 
credit for the installation of hydrogen fueling stations, 
and for other purposes. 
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 ‘‘Hydrogen Transpor-
tation Wins Over Growing Reliance on Oil (H2 GROW) 
Act’’. 
VerDate Aug 31 2005 
04:46 Jul 30, 2006
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5973.IH
H5973
ccoleman on PROD1PC71 with BILLS
SEC. 2. CREDIT FOR INSTALLATION OF HYDROGEN FUEL-
ING STATIONS. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to foreign tax credit, etc.) is amended by 
adding at the end the following new section: 
‘‘SEC. 30D. HYDROGEN-POWERED 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 qualified hydrogen-powered vehicle refueling property 
and the installation thereof. 
‘‘(b) YEAR CREDIT ALLOWED.—The credit allowed 
under subsection (a) shall be allowed in the taxable year 
in which the qualified hydrogen-powered vehicle refueling 
property is placed in service by the taxpayer. 
‘‘(c) DEFINITION OF QUALIFIED HYDROGEN-POW-
ERED
VEHICLE
REFUELING
PROPERTY.—The term 
‘qualified hydrogen-powered vehicle refueling property’ 
means any property (not including a building and its 
structural components) if— 
‘‘(1) such property is of a character subject to 
the allowance for depreciation, 
VerDate Aug 31 2005 
04:46 Jul 30, 2006
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5973.IH
H5973
ccoleman on PROD1PC71 with BILLS
‘‘(2) the original use of such property begins 
with the taxpayer, 
‘‘(3) such property is for the production, stor-
age or dispensing of hydrogen fuel into the fuel tank 
of a motor vehicle propelled by such fuel, and 
‘‘(4) such property is located at a facility of the 
taxpayer from which the taxpayer sells such fuel for 
dispensing into fuel tanks of motor vehicles of the 
general public. 
‘‘(d) 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, 30B, and 30C, over 
‘‘(2) the tentative minimum tax for the taxable 
year. 
‘‘(e) 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). 
‘‘(f) 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). 
VerDate Aug 31 2005 
04:46 Jul 30, 2006
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5973.IH
H5973
ccoleman on PROD1PC71 with BILLS
‘‘(g) 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 (d) 
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). 
‘‘(h) SPECIAL RULES.—Rules similar to the rules of 
paragraphs (4) and (5) of section 179A(e) shall apply. 
‘‘(i) REGULATIONS.—The Secretary shall prescribe 
such regulations as necessary to carry out the provisions 
of this section. 
‘‘(j) TERMINATION.—This section shall not apply to 
any property placed in service after December 31, 2013.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1016(a) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
VerDate Aug 31 2005 
04:46 Jul 30, 2006
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5973.IH
H5973
ccoleman on PROD1PC71 with BILLS
‘‘(38) to the extent provided in section 
30D(e).’’. 
(2) Section 55(c)(2) of such Code is amended 
by inserting ‘‘30D(d),’’ after ‘‘30C(d)(2),’’. 
(3) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 30C the following new item: 
‘‘Sec. 30D. Hydrogen-powered vehicle refueling property credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service in 
taxable years beginning after the date of the enactment 
of this Act. 
SEC. 3. EXCLUSION OF EARNINGS FROM HYDROGEN FUEL 
SALES. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
items specifically excluded from gross income) is amended 
by inserting after section 136 the following new section: 
‘‘SEC. 136A. INCOME FROM HYDROGEN FUEL SALES. 
‘‘(a) EXCLUSION.—Gross income shall not include in-
come attributable to the sale of hydrogen fuel sold at retail 
for use in a hydrogen vehicle. 
‘‘(b) DEFINITION
OF HYDROGEN VEHICLE.—For 
purposes of this section, the term ‘hydrogen vehicle’ means 
VerDate Aug 31 2005 
04:46 Jul 30, 2006
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5973.IH
H5973
ccoleman on PROD1PC71 with BILLS