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‘‘(A) In the case of a vehicle which con-
forms to the Motor Vehicle Safety Standard
500 prescribed by the Secretary of Transpor-
tation, the lesser of—
‘‘(i) 10 percent of the manufacturer’s
suggested retail price of the vehicle, or
‘‘(ii) $4,000.
‘‘(B) In the case of a vehicle with a gross
vehicle weight rating not exceeding 8,500
pounds—
‘‘(i) $4,000, or
‘‘(ii) $6,000, if such vehicle is—
‘‘(I) capable of a driving range of
at least 100 miles on a single charge
of the vehicle’s rechargeable batteries
and measured pursuant to the urban
dynamometer schedules under appen-
dix I to part 86 of title 40, Code of
Federal Regulations, or
‘‘(II) capable of a payload capac-
ity of at least 1000 pounds.
‘‘(C) In the case of a vehicle with a gross
vehicle weight rating exceeding 8,500 but not
exceeding 14,000 pounds, $10,000.
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‘‘(D) In the case of a vehicle with a gross
vehicle weight rating exceeding 14,000 but not
exceeding 26,000 pounds, $20,000.
‘‘(E) In the case of a vehicle with a gross
vehicle weight rating exceeding 26,000 pounds,
$40,000.’’, and
(B) by redesignating paragraph (3) as
paragraph (2).
(3) CONFORMING AMENDMENTS.—
(A) Section 53(d)(1)(B)(iii) is amended by
striking ‘‘section 30(b)(3)(B)’’ and inserting
‘‘section 30(b)(2)(B)’’.
(B) Section 55(c)(2) is amended by strik-
ing ‘‘30(b)(3)’’ and inserting ‘‘30(b)(2)’’.
(b) QUALIFIED BATTERY ELECTRIC VEHICLE.—
(1) IN GENERAL.—Section 30(c)(1)(A) (defin-
ing qualified electric vehicle) is amended to read as
follows:
‘‘(A) which is—
‘‘(i) operated solely by use of a bat-
tery or battery pack, or
‘‘(ii) powered primarily through the
use of an electric battery or battery pack
using a flywheel or capacitor which stores
energy produced by an electric motor
179
through regenerative braking to assist in
vehicle operation,’’.
(2) LEASED VEHICLES.—Section 30(c)(1)(C) is
amended by inserting ‘‘or lease’’ after ‘‘use’’.
(3) CONFORMING AMENDMENTS.—
(A) Subsections (a), (b)(2), and (c) of sec-
tion 30 are each amended by inserting ‘‘bat-
tery’’ after ‘‘qualified’’ each place it appears.
(B) The heading of subsection (c) of sec-
tion 30 is amended by inserting ‘‘BATTERY’’
after ‘‘QUALIFIED’’.
(C) The heading of section 30 is amended
by inserting ‘‘BATTERY’’ after ‘‘QUALIFIED’’.
(D) The item relating to section 30 in the
table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by in-
serting ‘‘battery’’ after ‘‘qualified’’.
(E) Section 179A(c)(3) is amended by in-
serting ‘‘battery’’ before ‘‘electric’’.
(F) The heading of paragraph (3) of sec-
tion 179A(c) is amended by inserting ‘‘BAT-
TERY’’ before ‘‘ELECTRIC’’.
(c) ADDITIONAL SPECIAL RULES.—Section 30(d)
(relating to special rules) is amended by adding at the end
the following:
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‘‘(5) NO
DOUBLE
BENEFIT.—The amount of
any deduction or credit allowable under this chapter
for any cost taken into account in computing the
amount of the credit determined under subsection
(a) shall be reduced by the amount of such credit at-
tributable to such cost.
‘‘(6) PROPERTY USED BY TAX-EXEMPT ENTI-
TIES.—In the case of a credit amount which is al-
lowable with respect to a vehicle which is acquired
by an entity exempt from tax under this chapter, the
person which sells or leases such vehicle to the entity
shall be treated as the taxpayer with respect to the
vehicle for purposes of this section and the credit
shall be allowed to such person, but only if the per-
son clearly discloses to the entity in any sale or lease
contract the specific amount of any credit otherwise
allowable to the entity under this section and re-
duces the sale or lease price of such vehicle by an
equivalent amount of such credit.’’.
(d) EXTENSION.—Section 30(e) (relating to termi-
nation) is amended by striking ‘‘2004’’ and inserting
‘‘2007’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to property placed in service after
181
December 31, 2001, in taxable years ending after such
date.
SEC. 533. 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:
‘‘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 25 cents for each gasoline gallon equivalent of alter-
native fuel sold at retail by the taxpayer during such year
as a fuel to propel any qualified motor vehicle, but only
if the taxpayer reduces the retail sales price of such fuel
by an equivalent amount of such credit.
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) 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.
‘‘(2) GASOLINE
GALLON
EQUIVALENT.—The
term ‘gasoline gallon equivalent’ means, with respect
to any alternative fuel, the amount (determined by
185
‘‘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—
‘‘(1) 50 percent, in the case of retail clean-fuel
vehicle refueling property, and
‘‘(2) 50 percent, in the case of residential clean-
fuel vehicle refueling property,
of the amount paid or incurred by the taxpayer during
the taxable year for the installation of clean-fuel vehicle
refueling property.
‘‘(b) LIMITATION.—The credit allowed under—
‘‘(1) subsection (a)(1) with respect to clean-fuel
vehicle refueling property, shall not exceed $30,000,
and
‘‘(2) subsection (a)(2) with respect to clean-fuel
vehicle refueling property, shall not exceed $1,000.
‘‘(c) YEAR CREDIT ALLOWED.—The credit allowed
under subsection (a) shall be allowed in the taxable year
in which the clean-fuel vehicle refueling property is placed
in service by the taxpayer.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) CLEAN-FUEL VEHICLE REFUELING PROP-
ERTY.—The term ‘clean-fuel vehicle refueling prop-
erty’ has the same meaning given the term ‘qualified
186
clean-fuel vehicle refueling property’ under section
179A.
‘‘(2) RESIDENTIAL CLEAN-FUEL VEHICLE RE-
FUELING PROPERTY.—The term ‘residential clean-
fuel vehicle refueling property’ means clean-fuel ve-
hicle refueling property which is installed on prop-
erty 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 clean-fuel vehicle refueling
property—
‘‘(A) which is installed on property used in
a trade or business of the taxpayer, and
‘‘(B) if such refueling property—
‘‘(i) is—
‘‘(I) available to the public dur-
ing normal business hours, and
‘‘(II) capable of serving at least 3
motor vehicles at the same time, or
‘‘(ii) regularly serves at least 1 fleet of
10 or more motor vehicles.
‘‘(e) APPLICATION WITH OTHER CREDITS.—The
credit allowed under subsection (a) for any taxable year
shall not exceed the excess (if any) of—
187
‘‘(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 clean-fuel vehicle re-
fueling 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 refueling
property for purposes of this section (and such refueling
property shall be treated as retail clean-fuel vehicle refuel-
ing property) and the credit shall be allowed to such per-
son, but only if the person clearly discloses to the entity
in any installation contract the specific amount of the
credit allowable under this section and modifies the price
188
of such contract to take into account the amount of such
credit.
‘‘(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 (b)
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 after December 31, 2006.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 1016(a) is amended by striking
‘‘and’’ at the end of paragraph (32), by striking the
period at the end of paragraph (33) and inserting ‘‘,
and’’, and by adding at the end the following:
189
‘‘(34) to the extent provided in section
30C(f).’’.
(2) Section 53(d)(1)(B)(iii) is amended by in-
serting ‘‘, or not allowed under section 30C solely by
reason of the application of section 30C(e)(2)’’ be-
fore the period.
(3) Section 55(c)(2) is amended by inserting
‘‘30C(e),’’ after ‘‘30B(e)’’.
(4) The table of sections for subpart B of part
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 30B the fol-
lowing:
‘‘Sec. 30C. Clean-fuel vehicle refueling property credit.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to property placed in service after
December 31, 2001, in taxable years ending after such
date.
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