I 
109TH CONGRESS 
1ST SESSION H. R. 3059
To provide for Flexible Fuel Vehicle (FFV) refueling capability at new and 
existing refueling station facilities to promote energy security. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 24, 2005
Ms. CARSON (for herself and Mr. SHIMKUS) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To provide for Flexible Fuel Vehicle (FFV) refueling capa-
bility at new and existing refueling station facilities to 
promote energy security.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Alternative Fuel Utilization and Infrastructure Develop-
ment Incentives Act of 2005’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this division an 
amendment or repeal is expressed in terms of an amend-
ment to, or repeal of, a section or other provision, the ref-
erence shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title, etc. 
Sec. 2. Purpose. 
Sec. 3. Findings. 
Sec. 4. Incentives for the installation of alternative fuel refueling stations. 
Sec. 5. Incentives for the retail sale of alternative fuels as motor vehicle fuel.
SEC. 2. PURPOSE. 
The purpose of this Act is to decrease the dependence 
of the United States on foreign oil by increasing the use 
of high ratio blends of gasoline with a minimum 85 per-
cent domestically derived ethanol content (E–85) as an al-
ternative fuel and providing greater access to this fuel for 
American motorists. 
SEC. 3. FINDINGS. 
Congress finds the following: 
(1) The growing United States reliance on for-
eign produced petroleum and the recent escalation of 
crude oil prices demands that all prudent measures 
be undertaken to increase United States refining ca-
pacity, domestic oil production, and expanded utili-
zation of alternative forms of transportation fuels 
and infrastructure. 
(2) Recent studies confirm the environmental 
and overall energy security benefits of high ratio 
blends of gasoline with a minimum 85 percent do-
mestically derived ethanol content (E–85), especially 
with regard to the reduction of greenhouse gas emis-
sions from the national on-road passenger car vehi-
cle fleet. 
(3) The market penetration of E–85 capable 
Flexible 
Fuel 
Vehicles 
(FFVs) 
now 
exceeds 
5,000,000 with an additional 1,000,000 or more 
FFVs expected to be added annually as automakers 
continue to respond positively to congressionally pro-
vided production incentives. 
(4) It is further recognized that actual imple-
mentation of the use of E–85 fuel has been signifi-
cantly underutilized due primarily to the lack of E–
85 refueling infrastructure availability and pro-
motion and that such utilization rate will continue to 
lag unless resources are provided to substantially ac-
celerate national refueling infrastructure develop-
ment. 
(5) Additionally, incentives in the form of tax 
credits can serve to stimulate infrastructure develop-
ment and E–85 fuel utilization.
SEC. 4. INCENTIVES FOR THE INSTALLATION OF ALTER-
NATIVE FUEL REFUELING STATIONS. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 (relating to foreign tax credit, etc.) 
is amended by adding at the end the following new section: 
‘‘SEC. 30B. ALTERNATIVE FUEL VEHICLE REFUELING PROP-
ERTY 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 cost 
of any qualified alternative fuel vehicle refueling property 
placed in service by the taxpayer during the taxable year. 
‘‘(b) LIMITATION.—
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) with respect to any alternative fuel 
vehicle refueling property shall not exceed—
‘‘(A) $30,000 in the case of a property of 
a character subject to an allowance for depre-
ciation, and 
‘‘(B) $1,000 in any other case. 
‘‘(2) PHASEOUT.—In the case of any qualified 
alternative fuel vehicle refueling property placed in 
service after December 31, 2010, the limit otherwise 
applicable under paragraph (1) shall be reduced 
by—
‘‘(A) 25 percent in the case of any alter-
native fuel vehicle refueling property placed in 
service in calendar year 2011, and 
‘‘(B) 50 percent in the case of any alter-
native fuel vehicle refueling property placed in 
service in calendar year 2012. 
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED ALTERNATIVE FUEL VEHICLE 
REFUELING
PROPERTY.—Except as provided in 
paragraph (2), the term ‘qualified alternative fuel 
vehicle refueling property’ has the meaning given to 
such term by section 179A(d), but only with respect 
to any fuel at least 85 percent of the volume of 
which consists of ethanol. 
‘‘(2) RESIDENTIAL PROPERTY.—In the case of 
any property installed on property which is used as 
the principal residence (within the meaning of sec-
tion 121) of the taxpayer, paragraph (1) of section 
179A(d) shall not apply. 
‘‘(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, and 30, over
‘‘(2) the tentative minimum tax for the taxable 
year. 
‘‘(e) 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, 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). 
‘‘(f) SPECIAL RULES.—For purposes of this sec-
tion—
‘‘(1) BASIS
REDUCTION.—The basis of any 
property shall be reduced by the portion of the cost 
of such property taken into account under sub-
section (a). 
‘‘(2) NO
DOUBLE
BENEFIT.—No deduction 
shall be allowed under section 179A with respect to 
any property with respect to which a credit is al-
lowed under subsection (a). 
‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTI-
TY.—In the case of any qualified alternative fuel ve-
hicle refueling property the use of which is described
in paragraph (3) or (4) of section 50(b) and which 
is not subject to a lease, the person who sold such 
property to the person or entity using such property 
shall be treated as the taxpayer that placed such 
property in service, but only if such person clearly 
discloses to such person or entity in a document the 
amount of any credit allowable under subsection (a) 
with respect to such property (determined without 
regard to subsection (d)). 
‘‘(4) 
PROPERTY
USED
OUTSIDE
UNITED 
STATES, ETC., NOT QUALIFIED.—No credit shall be 
allowable under subsection (a) with respect to any 
property referred to in section 50(b)(1) or with re-
spect to the portion of the cost of any property 
taken into account under section 179. 
‘‘(5) ELECTION
NOT
TO
TAKE
CREDIT.—No 
credit shall be allowed under subsection (a) for any 
property if the taxpayer elects not to have this sec-
tion apply to such property. 
‘‘(6) RECAPTURE RULES.—Rules similar to the 
rules of section 179A(e)(4) shall apply. 
‘‘(g) REGULATIONS.—The Secretary shall prescribe 
such regulations as necessary to carry out the provisions 
of this section.
‘‘(h) TERMINATION.—This section shall not apply to 
any property placed in service after December 31, 2013.’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 1016(a) is amended by striking 
‘‘and’’ at the end of paragraph (30), by striking the 
period at the end of paragraph (31) and inserting ‘‘, 
and’’, and by adding at the end the following new 
paragraph: 
‘‘(32) to the extent provided in section 
30B(f)(1).’’. 
(2) Section 55(c)(2) is amended by inserting 
‘‘30B(e),’’ after ‘‘30(b)(3),’’. 
(3) Section 6501(m) is amended by inserting 
‘‘30B(f)(5),’’ after ‘‘30(d)(4),’’. 
(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 30A the fol-
lowing new item:
‘‘Sec. 30B. Alternative fuel vehicle refueling property credit.’’.
(c) 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. 5. INCENTIVES FOR THE RETAIL SALE OF ALTER-
NATIVE 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 40A the fol-
lowing new section: 
‘‘SEC. 40B. CREDIT FOR RETAIL SALE OF ALTERNATIVE 
FUELS AS MOTOR VEHICLE FUEL. 
‘‘(a) GENERAL RULE.—The alternative fuel retail 
sales credit for any taxable year is 35 cents for each gallon 
of alternative fuel sold at retail by the taxpayer during 
such year. 
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) ALTERNATIVE
FUEL.—The term ‘alter-
native fuel’ means any fuel at least 85 percent of the 
volume of which consists of ethanol. 
‘‘(2) 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 
this section) before such fuel is sold at retail,
then such use shall be treated in the same man-
ner as if such fuel were sold at retail as a fuel 
to propel such a vehicle by such person. 
‘‘(3) QUALIFIED
ALTERNATIVE
FUEL
MOTOR 
VEHICLE.—The term ‘new qualified alternative fuel 
motor vehicle’ means any motor vehicle—
‘‘(A) which is capable of operating on an 
alternative fuel, 
‘‘(B) the original use of which commences 
with the taxpayer, 
‘‘(C) which is acquired by the taxpayer for 
use or lease, but not for resale, and 
‘‘(D) which is made by a manufacturer. 
‘‘(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) 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.
‘‘(e) TERMINATION.—This section shall not apply to 
any fuel sold at retail after December 31, 2010.’’. 
(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 (18), 
by striking the period at the end of paragraph (19) and 
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(20) the alternative fuel retail sales credit de-
termined under section 40B(a).’’. 
(c) 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 
40A the following new item:
‘‘Sec. 40B. Credit for retail sale of alternative fuels as motor vehicle fuel.’’.
(d) 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.
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