I 
109TH CONGRESS 
1ST SESSION H. R. 1744
To amend the Internal Revenue Code of 1986 to provide incentives for 
alternative fuels and alternative fuel vehicles. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 20, 2005
Mr. RUPPERSBERGER 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 provide 
incentives for alternative fuels and alternative fuel vehicles.
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 ‘‘Common Sense Auto-
mobile Efficiency Act of 2005’’. 
SEC. 2. REPEAL OF PHASEOUTS FOR QUALIFIED ELECTRIC 
VEHICLES AND CLEAN-FUEL VEHICLES. 
(a) QUALIFIED ELECTRIC VEHICLES.—Subsection 
(b) of section 30 of the Internal Revenue Code of 1986
(relating to limitations) is amended by striking paragraph 
(2) and redesignating paragraph (3) as paragraph (2). 
(b) CLEAN-FUEL VEHICLES AND CERTAIN REFUEL-
ING PROPERTY.—Paragraph (1) of section 179A(b) of 
such Code (relating to qualified clean-fuel vehicle prop-
erty) is amended to read as follows: 
‘‘(1) QUALIFIED CLEAN-FUEL VEHICLE PROP-
ERTY.—The cost which may be taken into account 
under subsection (a)(1)(A) with respect to any 
motor vehicle shall not exceed—
‘‘(A) in the case of a motor vehicle not de-
scribed in subparagraph (B) or (C), $2,000, 
‘‘(B) in the case of any truck or van with 
a gross vehicle weight rating greater than 
10,000 pounds but not greater than 26,000 
pounds, $5,000, or 
‘‘(C) $50,000 in the case of—
‘‘(i) a truck or van with a gross vehi-
cle weight rating greater than 26,000 
pounds, or 
‘‘(ii) any bus which has a seating ca-
pacity of at least 20 adults (not including 
the driver).’’.
(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. 
SEC. 3. SMALL ETHANOL PRODUCER CREDIT. 
(a) DEFINITION OF SMALL ETHANOL PRODUCER.—
Section 40(g) of the Internal Revenue Code of 1986 (relat-
ing to definitions and special rules for eligible small eth-
anol 
producer 
credit) 
is 
amended 
by 
striking 
‘‘30,000,000’’ each place it appears and inserting 
‘‘60,000,000’’. 
(b) CONFORMING AMENDMENT.—Section 1388 of 
such Code (relating to definitions and special rules for co-
operative organizations) is amended by adding at the end 
the following new subsection: 
‘‘(l) CROSS REFERENCE.—For provisions relating to 
the apportionment of the alcohol fuels credit between coop-
erative organizations and their patrons, see section 
40(g)(6).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004.
SEC. 4. NONAPPLICATION OF EXPORT EXEMPTION TO DE-
LIVERY OF FUEL TO MOTOR VEHICLES RE-
MOVED FROM UNITED STATES. 
(a) IN GENERAL.—Section 4221(d)(2) of the Inter-
nal Revenue Code of 1986 (defining export) is amended 
by adding at the end the following new sentence: ‘‘Such 
term does not include the delivery of a taxable fuel (as 
defined in section 4083(a)(1)) into a fuel tank of a motor 
vehicle which is shipped or driven out of the United 
States.’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 4041(g) of such Code (relating to 
other exemptions) is amended by adding at the end 
the following new sentence: ‘‘Paragraph (3) shall not 
apply to the sale for delivery of a liquid into a fuel 
tank of a motor vehicle which is shipped or driven 
out of the United States.’’. 
(2) Clause (iv) of section 4081(a)(1)(A) of such 
Code (relating to tax on removal, entry, or sale) is 
amended by inserting ‘‘or at a duty-free sales enter-
prise (as defined in section 555(b)(8) of the Tariff 
Act of 1930)’’ after ‘‘section 4101’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales or deliveries made after 
the date of the enactment of this Act.
SEC. 5. ALTERNATIVE MOTOR VEHICLE CREDIT. 
(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: 
‘‘SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of—
‘‘(1) the new qualified fuel cell motor vehicle 
credit determined under subsection (b), 
‘‘(2) the new advanced lean burn technology 
motor vehicle credit determined under subsection (c), 
‘‘(3) the new qualified hybrid motor vehicle 
credit determined under subsection (d), and 
‘‘(4) the new qualified alternative fuel motor ve-
hicle credit determined under subsection (e). 
‘‘(b) NEW QUALIFIED FUEL CELL MOTOR VEHICLE 
CREDIT.—
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the new qualified fuel cell motor vehicle credit 
determined under this subsection with respect to a 
new qualified fuel cell motor vehicle placed in service 
by the taxpayer during the taxable year shall be de-
termined in accordance with the following table:
‘‘In the case of a vehicle which has a 
gross vehicle weight rating of— 
The new qualified 
fuel cell motor ve-
hicle credit is— 
Not more than 8,500 lbs ............................................
$4,000
More than 8,500 lbs but not more than 14,000 lbs ...
$10,000
More than 14,000 lbs but not more than 26,000 lbs
$20,000
More than 26,000 lbs .................................................
$40,000. 
‘‘(2) INCREASE FOR FUEL EFFICIENCY.—
‘‘(A) IN
GENERAL.—The amount deter-
mined under paragraph (1) with respect to a 
new qualified fuel cell motor vehicle which is a 
passenger automobile or light truck shall be in-
creased by the additional credit amount. 
‘‘(B) ADDITIONAL CREDIT AMOUNT.—For 
purposes of subparagraph (A), the additional 
credit amount shall be determined in accord-
ance with the following table:
‘‘In the case of a vehicle which achieves a 
fuel economy (expressed as a percentage 
of the 2002 model year city fuel economy) 
of— 
The additional 
credit amount is— 
At least 150 percent but less than 175 percent .........
$1,000
At least 175 percent but less than 200 percent .........
$1,500
At least 200 percent but less than 225 percent .........
$2,000
At least 225 percent but less than 250 percent .........
$2,500
At least 250 percent but less than 275 percent .........
$3,000
At least 275 percent but less than 300 percent .........
$3,500
At least 300 percent ...................................................
$4,000. 
‘‘(3) NEW QUALIFIED FUEL CELL MOTOR VEHI-
CLE.—For purposes of this subsection, the term 
‘new qualified fuel cell motor vehicle’ means a motor 
vehicle—
‘‘(A) which is propelled by power derived 
from one or more cells which convert chemical