not exceed the rate payable for level V of 
the Executive Schedule under section 5316 
of such title. 
(D) DETAIL
OF
GOVERNMENT
EMPLOY-
EES.—Any Federal Government employee may 
be detailed to the commission without reim-
bursement, and such detail shall be without 
interruption or loss of civil service status or 
privilege. 
(E) PROCUREMENT
OF
TEMPORARY
AND 
INTERMITTENT
SERVICES.—The Chairman of 
the commission may procure temporary and 
intermittent services under section 3109(b) of 
title 5, United States Code, at rates for individ-
uals which do not exceed the daily equivalent of 
the annual rate of basic pay prescribed for level
V of the Executive Schedule under section 5316 
of such title. 
(7) TERMINATION OF COMMISSION.—The com-
mission shall terminate on the earlier of—
(A) the date that is 90 days after the date 
on which the commission submits to the Sec-
retary of Transportation and Congress a find-
ing that the goal set forth in subsection (a) has 
been achieved; or
(B) the date that is 90 days after the date 
on which the commission submits the rec-
ommendations required under clause (ii) of 
paragraph (4)(A). 
TITLE II—HYDROGEN FUEL 
SEC. 201. CREDIT FOR RETAIL SALE OF HYDROGEN FUEL 
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 HYDROGEN AS 
MOTOR VEHICLE FUEL. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the hydrogen fuel retail sales credit for any taxable year 
is an amount equal to the greater of—
‘‘(1) 20 percent of the price of hydrogen, or 
‘‘(2) 50 cents for each quantity of hydrogen 
having a BTU content of 115,000, 
sold at retail by the taxpayer during such year as a fuel 
to propel any hydrogen fuel cell vehicle. 
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) HYDROGEN
FUEL
CELL
VEHICLE.—The 
term ‘hydrogen fuel cell vehicle’ means a motor vehi-
cle which is propelled by power derived from 1 or
more cells which convert chemical energy directly 
into electricity by combining oxygen with hydrogen 
fuel which is stored on board the vehicle in any form 
and may or may not require reformation prior to 
use. 
‘‘(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 hydrogen (including any use after im-
portation) as a fuel to propel any car or truck 
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 person. 
‘‘(c) 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. 
‘‘(d) TERMINATION.—This section shall not apply to 
any fuel sold at retail after December 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 hydrogen fuel retail sales credit deter-
mined 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 hydrogen fuel retail sales credit 
determined under section 40A(a) may be carried 
back to a taxable year ending before January 1, 
2003.’’. 
(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 hydrogen as motor vehicle fuel.’’.
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold at retail after Decem-
ber 31, 2002, in taxable years ending after such date.
SEC. 202. CREDIT FOR PRODUCTION OF HYDROGEN FUEL. 
(a) HYDROGEN PRODUCED FROM ANY SOURCE.—
Section 29 (relating to credit for producing fuel from non-
conventional sources) is amended by adding at the end the 
following new subsection: 
‘‘(h) HYDROGEN FUEL.—
‘‘(1) HYDROGEN FUEL PRODUCED FROM ANY 
SOURCE.—There shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year 
an amount equal to—
‘‘(A) $10, multiplied by 
‘‘(B) each quantity of hydrogen having a 
Btu content of 5,800,000—
‘‘(i) sold by the taxpayer to an unre-
lated person during the taxable year, and 
‘‘(ii) the production of which is attrib-
utable to the taxpayer. 
‘‘(2) ADDITIONAL
CREDIT
FOR
PRODUCTION 
FROM RENEWABLE SOURCES.—
‘‘(A) IN GENERAL.—In the case of hydro-
gen which is produced from a renewable source, 
paragraph (1)(A) shall be applied by sub-
stituting ‘$20’ for ‘$10’. 
‘‘(B) RENEWABLE SOURCE.—
‘‘(i) IN GENERAL.—The term ‘renew-
able source’ means solar, wind, ocean, geo-
thermal energy, biomass, landfill gas, or 
incremental hydropower. 
‘‘(ii) INCREMENTAL HYDROPOWER.—
The term ‘incremental hydropower’ means 
additional generating capacity achieved 
from increased efficiency or additions of 
new capacity at a hydroelectric facility in 
existence on the date of enactment of this 
paragraph. 
‘‘(3) EXCLUSION
ON
SALE
FOR
CERTAIN 
USES.—No credit shall be allowed under this sub-
section for hydrogen fuel sold by the taxpayer the 
use of which is for the production or refining of 
other petroleum products.
‘‘(4) TERMINATION.—This subsection shall not 
apply to hydrogen fuel produced after December 31, 
2013.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to hydrogen produced after Decem-
ber 31, 2002, in taxable years ending after such date. 
SEC. 203. TAX HOLIDAY FOR HYDROGEN FUEL. 
(a) IN GENERAL.—Subchapter B of chapter 65 (re-
lating to abatements, credits, and refunds) is amended by 
adding at the end the following new section:
‘‘SEC. 6429. FUELS USED IN HYDROGEN POWERED VEHI-
CLES. 
‘‘(a) IN GENERAL.—If any fuel taxable under section 
4041 (relating to imposition of tax on special fuels) or 
4081 (relating to imposition of tax on gasoline) is used 
to produce hydrogen as a means of propelling a hydrogen 
fuel cell vehicle during the applicable period, the Secretary 
shall pay (without interest) to the consumer an amount 
equal to the amount determined by multiplying the num-
ber of gallons so used by the rate at which tax was im-
posed on such fuel under section 4041 or 4081. 
‘‘(b) APPLICABLE PERIOD.—The term ‘applicable pe-
riod’ means the period beginning after December 31, 
2002, and ending before January 1, 2014. 
‘‘(c) HYDROGEN FUEL CELL VEHICLE.—The term 
‘hydrogen fuel cell vehicle’ means a motor vehicle which 
is propelled by power derived from 1 or more cells which 
convert chemical energy directly into electricity by com-
bining oxygen with hydrogen fuel which is stored on board 
the vehicle in any form and may or may not require ref-
ormation prior to use.’’
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subchapter B of chapter 65 is amended by insert-
ing after the item relating to section 6428 the following 
new item:
‘‘Sec. 6429. Fuels used in hydrogen powered vehicles.’’.
SEC. 204. SENSE OF CONGRESS REGARDING HYDROGEN 
FUEL TAXES. 
It is the sense of Congress that no tax should be im-
posed on hydrogen fuel before January 1, 2014. 
SEC. 205. HYDROGEN FUELING FRINGE BENEFIT. 
(a) IN GENERAL.—Paragraph (1) of section 132(c) 
(relating to qualified employee discounts) is amended by 
striking ‘‘or’’ at the end of subparagraph (A), by striking 
the period and inserting ‘‘, or’’ at the end of subparagraph 
(B), and by adding at the end the following new subpara-
graph: 
‘‘(C) in the case of hydrogen fuel, 50 per-
cent of the price at which such fuel is being of-
fered by the employer to customers.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2002. 
SEC. 206. EXCLUSION OF EARNINGS FROM HYDROGEN 
FUEL SALES. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 (relating to items specifically excluded from gross 
income) is amended by inserting after section 136 the fol-
lowing 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 for use 
in a hydrogen fuel cell vehicle. 
‘‘(b) DEFINITION OF HYDROGEN FUEL CELL VEHI-
CLE.—For purposes of this section, the term ‘hydrogen 
fuel cell vehicle’ means a car or truck which is propelled 
by power derived from 1 or more cells which convert chem-
ical energy directly into electricity by combining oxygen 
with hydrogen fuel which is stored on board the vehicle 
in any form and may or may not require reformation prior 
to use. 
‘‘(c) TERMINATION.—This section shall not apply to 
income attributable to sales after December 31, 2013.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subpart B of part III of subchapter B of chapter 
1 is amended by inserting after the item relating to section 
136 the following new item:
‘‘Sec. 136A. Income from hydrogen fuel sales.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to income received after December 
31, 2002, in taxable years ending after such date. 
SEC. 207. CREDIT FOR USE OF ETHANOL OR RENEWABLE 
MOTOR FUEL TO PRODUCE HYDROGEN FUEL. 
(a) DEFINITIONS.—In this section:
(1) GALLON-EQUIVALENT
UNIT.—The term 
‘‘gallon-equivalent unit’’ means a quantity of ethanol 
or renewable motor fuel used in the production of 
hydrogen fuel that the Secretary of Energy deter-
mines is equivalent in energy value to the use of a 
gallon of ethanol or renewable motor fuel (whichever 
is applicable) used in the production of motor fuel. 
(2) HYDROGEN
FUEL.—The term ‘‘hydrogen 
fuel’’ means hydrogen fuel produced for use in a hy-
drogen fuel vehicle. 
(b) CREDIT FOR USE OF HYDROGEN FUEL.—In sat-
isfaction of all or part of the requirement under any Fed-
eral law (enacted before, on, or after the date of enactment 
of this Act) under which a refiner of motor fuel is required 
to use a gallon of ethanol or renewable motor fuel in the 
production of motor fuel in any year or an importer of 
motor fuel is required to import a gallon of ethanol (in-
cluding ethanol blended with motor fuel) or renewable 
motor fuel in any year, a refiner or importer shall receive 
credit for 100 gallons of ethanol or renewable motor fuel 
(whichever is applicable) for each gallon-equivalent unit 
used to produce refined or imported hydrogen fuel.
TITLE III—HYDROGEN FUELING 
INFRASTRUCTURE 
SEC. 301. CREDIT FOR INSTALLATION OF HYDROGEN FUEL-
ING STATIONS. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 (relating to foreign tax credit, etc.), 
as amended by this Act, is amended by adding at the end 
the following new section: 
‘‘SEC. 30C. HYDROGEN FUEL CELL 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 qualified hydrogen fuel cell vehicle refueling prop-
erty 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 fuel cell vehicle refueling 
property is placed in service by the taxpayer.
‘‘(c) DEFINITION OF QUALIFIED HYDROGEN FUEL 
CELL
VEHICLE
REFUELING
PROPERTY.—The term 
‘qualified hydrogen fuel cell 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, 
‘‘(2) the original use of such property begins 
with the taxpayer, and 
‘‘(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. 
‘‘(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, and 30B, 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 or 179B with respect to any 
property with respect to which a credit is allowed under 
subsection (a). 
‘‘(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 (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). 
‘‘(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), 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(e).’’.
(2) Section 55(c)(2), as amended by this Act, is 
amended by inserting ‘‘30C(d),’’ after ‘‘30B(c),’’. 
(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. Hydrogen fuel cell vehicle refueling property credit.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
September 30, 2002, in taxable years ending after such 
date. 
SEC. 302. EXCLUSION OF EARNINGS FROM HYDROGEN 
FUELING EQUIPMENT SALES. 
(a) IN GENERAL.—Subsection (a) of section 136A 
(as added by section 206) is amended—
(1) by striking ‘‘of hydrogen’’ and inserting 
‘‘of—
‘‘(1) hydrogen’’, 
(2) by striking the period and inserting ‘‘, 
and’’, and 
(3) by inserting at the end the following new 
paragraph: 
‘‘(2) hydrogen fueling equipment suitable for 
vehicle refueling.’’.
(b) DEFINITION
OF HYDROGEN FUELING EQUIP-
MENT.—Subsection (b) of section 136A (as added by sec-
tion 206) is amended—
(1) by striking ‘‘DEFINITION
OF HYDROGEN 
FUEL CELL VEHICLE.—’’ and inserting ‘‘DEFINI-
TIONS.—
‘‘(1) HYDROGEN FUEL CELL VEHICLE.—’’, and 
(2) by inserting at the end the following new 
paragraph: 
‘‘(2) HYDROGEN
FUELING
EQUIPMENT.—For 
purposes of this section, the term ‘hydrogen fueling 
equipment’ means equipment used in the process of 
reforming, storing, supplying, or replenishing hydro-
gen fuel used in a hydrogen fuel cell vehicle.’’. 
(c) CONFORMING AMENDMENTS.—
(1) SECTION HEADING.—The heading of section 
136A is amended by inserting ‘‘AND HYDROGEN 
FUELING EQUIPMENT’’ before ‘‘SALES’’. 
(2) TABLE OF SECTIONS.—The item relating to 
section 136A in the table of sections for subpart B 
of part III of subchapter B of chapter 1 is amended 
to read as follows:
‘‘Sec. 136A. Income from hydrogen fuel and hydrogen fueling equipment 
sales.’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2002. 
SEC. 303. EXTENSION OF DEDUCTION FOR HYDROGEN 
FUELING INFRASTRUCTURE. 
Section 179A(f) (relating to the termination of de-
ductions for clean-fuel vehicles and certain refueling prop-
erty) is amended—
(1) by striking ‘‘This section’’ and inserting: 
‘‘(1) QUALIFIED CLEAN-FUEL VEHICLE PROP-
ERTY.—The deduction under subparagraph (A) of 
subsection (a)(1)’’, and 
(2) by adding at the end the following: 
‘‘(2) QUALIFIED
CLEAN-FUEL
VEHICLE
RE-
FUELING
PROPERTY.—The deduction under sub-
paragraph (B) of subsection (a)(1) shall not apply to 
any property placed in service after December 31, 
2013.’’. 
SEC. 304. DEDUCTION FOR REFUELING USE OF HYDROGEN 
FUEL CELLS. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 (relating to itemized deduction for individuals and
corporations) is amended by adding after section 179A the 
following new section:
‘‘SEC. 179B. DEDUCTION FOR COPRODUCTION OF HYDRO-
GEN FUEL CELLS. 
‘‘(a) IN GENERAL.—There shall be allowed as a de-
duction an amount equal to the cost of any qualified hy-
drogen refueling property in the taxable year. 
‘‘(b) LIMITATION.—The aggregate amount which 
may be taken into account under this section with respect 
to any qualified hydrogen refueling property shall not ex-
ceed the excess (if any) of—
‘‘(1) $300,000, over 
‘‘(2) the aggregate amount taken into account 
under this section for the qualified hydrogen refuel-
ing property for all preceding taxable years. 
‘‘(c) DEFINITIONS.—For the purposes of this sec-
tion—
‘‘(1) QUALIFIED HYDROGEN REFUELING PROP-
ERTY.—
‘‘(A) IN
GENERAL.—The term ‘qualified 
hydrogen refueling property’ means a building 
that—
‘‘(i) uses hydrogen fuel cells to pro-
vide power to the building, 
‘‘(ii) has facilities that allow hydrogen 
to be used for public refueling of hydrogen 
fuel cell vehicles, and