Title: Clean Vehicles Incentive Act of 2017
Policy area: Taxation

Summary:
Clean Vehicles Incentive Act of 2017
This bill amends the Internal Revenue Code to allow certain businesses a general business tax credit for the cost of certain clean-fuel vehicle property and the use of clean-burning fuel if the businesses are located in areas designated as nonattainment areas under the Clean Air Act or have qualified clean-fuel vehicle property that is used substantially within a nonattainment area.
The bill also allows a new qualified hybrid motor vehicle tax credit for hybrid vehicles placed in service after December 31, 2016, by an eligible business if substantially all of the use of the vehicle is in a nonattainment area.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2253 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2253

To amend the Internal Revenue Code of 1986 to provide a business credit 
   relating to the use of clean-fuel and fuel efficient vehicles by 
  businesses within areas designated as nonattainment areas under the 
                 Clean Air Act, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 2017

 Mr. Serrano 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 a business credit 
   relating to the use of clean-fuel and fuel efficient vehicles by 
  businesses within areas designated as nonattainment areas under the 
                 Clean Air Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Vehicles Incentive Act of 
2017''.

SEC. 2. CLEAN-FUEL CREDIT WITH RESPECT TO BUSINESSES LOCATED IN 
              NONATTAINMENT AREAS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45S. CLEAN-FUEL CREDIT WITH RESPECT TO BUSINESSES LOCATED IN 
              NONATTAINMENT AREAS.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible business the clean-fuel credit determined under this section 
for the taxable year is the sum of--
            ``(1) the clean-fuel property credit, plus
            ``(2) the clean-burning fuel use credit.
    ``(b) Clean-Fuel Property Credit.--
            ``(1) In general.--The clean-fuel property credit is the 
        sum of--
                    ``(A) qualified vehicle property costs, plus
                    ``(B) qualified refueling property costs.
            ``(2) Qualified vehicle property costs.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `qualified vehicle property costs' means the 
                amount paid or incurred by the eligible business for 
                qualified clean-fuel vehicle property which is placed 
                in service during the taxable year by the eligible 
                business and substantially all of the use of which is 
                in a nonattainment area.
                    ``(B) Limitation.--The amount which may be taken 
                into account under subparagraph (A) with respect to any 
                motor vehicle shall not exceed--
                            ``(i) $8,000, in the case of a motor 
                        vehicle with a gross vehicle weight rating of 
                        not more than 8,500 pounds,
                            ``(ii) $20,000, in the case of a motor 
                        vehicle with a gross vehicle weight rating of 
                        more than 8,500 pounds but not more than 14,000 
                        pounds,
                            ``(iii) $40,000, in the case of a motor 
                        vehicle with a gross vehicle weight rating of 
                        more than 14,000 pounds but not more than 
                        26,000 pounds, and
                            ``(iv) $80,000, in the case of a motor 
                        vehicle with a gross vehicle weight rating of 
                        more than 26,000 pounds.
                    ``(C) Qualified clean-fuel vehicle property.--The 
                term `qualified clean-fuel vehicle property' shall have 
                the meaning given to such term by section 179A(c) (as 
                in effect before its repeal by Public Law 113-295 and 
                without regard to paragraphs (1)(A) and (3) thereof), 
                except that such term does not include property that is 
                a motor vehicle propelled by a fuel that is not a 
                clean-burning fuel.
            ``(3) Qualified refueling property costs.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `qualified refueling property costs' means 
                amounts paid or incurred by the eligible business for 
                qualified clean-fuel vehicle refueling property (as 
                defined by section 179A(d) (as in effect before its 
                repeal by Public Law 113-295)) which is placed in 
                service in a nonattainment area during the taxable year 
                by the eligible business.
                    ``(B) Limitation.--
                            ``(i) In general.--The aggregate cost which 
                        may be taken into account under subparagraph 
                        (A) with respect to qualified clean-fuel 
                        vehicle refueling property placed in service by 
                        the eligible business during the taxable year 
                        at a location shall not exceed the lesser of--
                                    ``(I) $150,000, or
                                    ``(II) the cost of such property 
                                reduced by the amount described in 
                                clause (ii).
                            ``(ii) Reduction for amounts previously 
                        taken into account.--For purposes of clause 
                        (i)(II), the amount described in this clause is 
                        the sum of--
                                    ``(I) the aggregate amount taken 
                                into account under paragraph (1)(B) for 
                                all preceding taxable years, and
                                    ``(II) the aggregate amount taken 
                                into account under section 
                                179A(a)(1)(B) (as in effect before its 
                                repeal by Public Law 113-295) by the 
                                taxpayer (or any related person or 
                                predecessor) with respect to property 
                                placed in service at such location for 
                                all preceding taxable years.
                            ``(iii) Special rules.--For purposes of 
                        this subparagraph, the provisions of 
                        subparagraphs (B) and (C) of section 179A(b)(2) 
                        (as in effect before its repeal by Public Law 
                        113-295) shall apply.
    ``(c) Clean-Burning Fuel Use Credit.--
            ``(1) In general.--For purposes of subsection (a), the 
        clean-burning fuel use credit is the amount equal to 50 cents 
        for each gasoline gallon equivalent of clean-burning fuel used 
        by an eligible business during the taxable year to propel 
        qualified clean-fuel vehicle property.
            ``(2) Clean-burning fuel.--For purposes of paragraph (1), 
        the term `clean-burning fuel' has the meaning given to such 
        term by section 179A (as in effect before its repeal by Public 
        Law 113-295), except that such term includes compressed natural 
        gas and biodiesel (as defined by section 40A(d)(1)).
            ``(3) Gasoline gallon equivalent.--For purposes of 
        paragraph (1), the term `gasoline gallon equivalent' means, 
        with respect to any clean burning fuel, the amount (determined 
        by the Secretary) of such fuel having a Btu content of 114,000.
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Eligible business.--The term `eligible business' 
        means--
                    ``(A) a qualified business entity or a qualified 
                proprietorship (as such terms are defined by section 
                1397C, determined by substituting `nonattainment area' 
                for `empowerment zone' and `enterprise zone' each place 
                it appears), and
                    ``(B) a trade or business located outside of a 
                nonattainment area, but only with respect to qualified 
                clean-fuel vehicle property used substantially within a 
                nonattainment area.
            ``(2) Nonattainment area.--The term `nonattainment area' 
        shall have the meaning given to such term by section 171 of the 
        Clean Air Act (42 U.S.C. 7501).
    ``(e) Denial of Double Benefit.--Except as provided in section 
30B(d)(4), no credit shall be allowed under subsection (a) for any 
expense for which a deduction or credit is allowed under any other 
provision of this chapter.
    ``(f) Recapture.--The Secretary shall, by regulations, provide for 
recapturing the benefit under any credit allowable under subsection (a) 
with respect to any property substantially all of the use of which is 
not in a nonattainment area.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of such Code (relating to current year business credit) is 
amended by striking ``plus'' at the end of paragraph (35), by striking 
the period at the end of paragraph (36) and inserting ``, plus'', and 
by adding at the end thereof the following new paragraph:
            ``(37) the clean-fuel credit determined under section 
        45S.''.
    (c) Denial of Double Benefit.--Section 280C of such Code (relating 
to certain expenses for which credits are allowable) is amended by 
adding at the end thereof the following new subsection:
    ``(j) Zone Clean Fuels Expenses.--No deduction shall be allowed for 
that portion of expenses for clean-burning fuel otherwise allowable as 
a deduction for the taxable year which is equal to the amount of the 
credit determined for such taxable year under section 45S.''.
    (d) Credit Allowed Against Regular and Minimum Tax.--Subparagraph 
(B) of section 38(c)(4) of such Code (relating to specified credits) is 
amended by striking ``and'' at the end of clause (x), by striking the 
period at the end of clause (xi) and inserting ``, and'', and by 
inserting after clause (xi) the following:
                            ``(xii) the credit determined under section 
                        45S.''.
    (e) Deduction for Certain Unused Business Credits.--Subsection (c) 
of section 196 of such Code is amended by striking ``and'' at the end 
of paragraph (13), by striking the period at the end of paragraph (14) 
and inserting ``, and'', and by adding after paragraph (14) the 
following new paragraph:
            ``(15) the clean fuels credit determined under section 
        45S.''.
    (f) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45R the following new 
item:

``Sec. 45S. Clean-fuel credit with respect to businesses located in 
                            nonattainment areas.''.
    (g) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2016.

SEC. 3. CREDIT FOR HYBRID VEHICLES PLACED IN SERVICE IN NONATTAINMENT 
              AREAS.

    (a) In General.--Subsection (d) of section 30B of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(4) Vehicles placed in service in nonattainment area 
        after 2016.--
                    ``(A) In general.--No amount shall be allowed as a 
                credit determined under this subsection for any taxable 
                year beginning after 2016 with respect to a new 
                qualified hybrid motor vehicle unless such vehicle is 
                placed in service by an eligible business and 
                substantially all of the use of which is in a 
                nonattainment area.
                    ``(B) Recapture.--The Secretary shall, by 
                regulations, provide for recapturing the benefit under 
                any credit allowable under subsection (a) by reason of 
                subparagraph (A) with respect to any property 
                substantially all of the use of which is not in a 
                nonattainment area.
                    ``(C) Phaseout not to apply.--For purposes of this 
                subsection, subsection (f) shall not apply.
                    ``(D) Definitions.--For purposes of this 
                subsection, the terms `eligible business' and 
                `nonattainment area' have the meanings given such terms 
                by section 45S(d).''.
    (b) Extension of Credit for Hybrid Vehicles Placed in Service in 
Nonattainment Areas.--Paragraph (3) of section 30(k) of such Code is 
amended to read as follows:
            ``(3) in the case of a new qualified hybrid motor vehicle 
        (as described in subsection (d)(2)(B))--
                    ``(A) December 31, 2009, and before January 1, 
                2017, or
                    ``(B) December 31, 2016, and before January 1, 
                2022.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2016.
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