S.Amdt. 931

1. Adds TITLE XVII--TAX INCENTIVES FOR ALTERNATIVE MOTOR VEHICLES AND FUELS at the end of the bill

   Adds a title

   In H.R. 6 · Placed on Calendar Senate

   Passed the House of Representatives April 21, 2005.

   Inserted: TITLE XVII--TAX INCENTIVES FOR ALTERNATIVE MOTOR VEHICLES AND FUELS

   Inserted: SEC. 1700. AMENDMENT OF 1986 CODE.

   Inserted: Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

   Inserted: Subtitle A--Tax Incentives SEC. 1701. ALTERNATIVE MOTOR VEHICLE CREDIT.

   Inserted: (a) In General.--Subpart B of part IV of subchapter A of chapter 1 (relating to foreign tax credit, etc.) is amended by adding at the end the following:

   Inserted: "SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.

   Inserted: "(a) Allowance of Credit.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of--

   Inserted: "(1) the new qualified fuel cell motor vehicle credit determined under subsection (b),

   Inserted: "(2) the new advanced lean burn technology motor vehicle credit determined under subsection (c),

   Inserted: "(3) the new qualified hybrid motor vehicle credit determined under subsection (d), and

   Inserted: "(4) the new qualified alternative fuel motor vehicle credit determined under subsection (e).

   Inserted: "(b) New Qualified Fuel Cell Motor Vehicle Credit.--

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   Inserted: "(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 is--

   Inserted: "(A) $8,000 if such vehicle has a gross vehicle weight rating of not more than 8,500 pounds,

   Inserted: "(B) $10,000, if such vehicle has a gross vehicle weight rating of more than 8,500 pounds but not more than 14,000 pounds,

   Inserted: "(C) $20,000, if such vehicle has a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and

   Inserted: "(D) $40,000, if such vehicle has a gross vehicle weight rating of more than 26,000 pounds.

   Inserted: "(2) Increase for fuel efficiency.--

   Inserted: "(A) In general.--The amount determined under paragraph (1)(A) with respect to a new qualified fuel cell motor vehicle which is a passenger automobile or light truck shall be increased by--

   Inserted: "(i) $1,000, if such vehicle achieves at least 150 percent but less than 175 percent of the 2002 model year city fuel economy,

   Inserted: "(ii) $1,500, if such vehicle achieves at least 175 percent but less than 200 percent of the 2002 model year city fuel economy,

   Inserted: "(iii) $2,000, if such vehicle achieves at least 200 percent but less than 225 percent of the 2002 model year city fuel economy,

   Inserted: "(iv) $2,500, if such vehicle achieves at least 225 percent but less than 250 percent of the 2002 model year city fuel economy,

   Inserted: "(v) $3,000, if such vehicle achieves at least 250 percent but less than 275 percent of the 2002 model year city fuel economy,

   Inserted: "(vi) $3,500, if such vehicle achieves at least 275 percent but less than 300 percent of the 2002 model year city fuel economy, and

   Inserted: "(vii) $4,000, if such vehicle achieves at least 300 percent of the 2002 model year city fuel economy.

   Inserted: "(B) 2002 model year city fuel economy.--For purposes of subparagraph (A), the 2002 model year city fuel economy with respect to a vehicle shall be determined in accordance with the following tables:

   Inserted: "(i) In the case of a passenger automobile:

   Inserted: "If vehicle inertia weight clThe 2002 model year city fuel economy is:

   Inserted: 1,500 or 1,750 lbs.............................................45.2 mpg 2,000 lbs......................................................39.6 mpg 2,250 lbs......................................................35.2 mpg 2,500 lbs......................................................31.7 mpg 2,750 lbs......................................................28.8 mpg 3,000 lbs......................................................26.4 mpg 3,500 lbs......................................................22.6 mpg 4,000 lbs......................................................19.8 mpg 4,500 lbs......................................................17.6 mpg 5,000 lbs......................................................15.9 mpg 5,500 lbs......................................................14.4 mpg 6,000 lbs......................................................13.2 mpg 6,500 lbs......................................................12.2 mpg 7,000 to 8,500 lbs............................................11.3 mpg.

   Inserted: "(ii) In the case of a light truck:

   Inserted: "If vehicle inertia weight clThe 2002 model year city fuel economy is:

   Inserted: 1,500 or 1,750 lbs.............................................39.4 mpg 2,000 lbs......................................................35.2 mpg 2,250 lbs......................................................31.8 mpg 2,500 lbs......................................................29.0 mpg 2,750 lbs......................................................26.8 mpg 3,000 lbs......................................................24.9 mpg 3,500 lbs......................................................21.8 mpg 4,000 lbs......................................................19.4 mpg 4,500 lbs......................................................17.6 mpg 5,000 lbs......................................................16.1 mpg 5,500 lbs......................................................14.8 mpg 6,000 lbs......................................................13.7 mpg 6,500 lbs......................................................12.8 mpg 7,000 to 8,500 lbs............................................12.1 mpg.

   Inserted: "(C) Vehicle inertia weight class.--For purposes of subparagraph (B), the term 'vehicle inertia weight class' has the same meaning as when defined in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).

   Inserted: "(3) New qualified fuel cell motor vehicle.--For purposes of this subsection, the term 'new qualified fuel cell motor vehicle' means a motor vehicle--

   Inserted: "(A) 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,

   Inserted: "(B) which, in the case of a passenger automobile or light truck, has received on or after the date of the enactment of this section a certificate that such vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle,

   Inserted: "(C) the original use of which commences with the taxpayer,

   Inserted: "(D) which is acquired for use or lease by the taxpayer and not for resale, and

   Inserted: "(E) which is made by a manufacturer.

   Inserted: "(c) New Advanced Lean Burn Technology Motor Vehicle Credit.--

   Inserted: "(1) In general.--For purposes of subsection (a), the new advanced lean burn technology motor vehicle credit determined under this subsection with respect to a new advanced lean burn technology motor vehicle placed in service by the taxpayer during the taxable year is the credit amount determined under paragraph (2).

   Inserted: "(2) Credit amount.--

   Inserted: "(A) Fuel economy.--

   Inserted: "(i) In general.--The credit amount determined under this paragraph shall be determined in accordance with the following table:

   Inserted: "In the case of a vehicle which achieves a fuel economy (expressed as a percentage of the 2002 model year city fuel eThe credit amount is--

   Inserted: At least 125 percent but less than 150 percent...................$600 At least 150 percent but less than 175 percent...................$1,100 At least 175 percent but less than 200 percent...................$1,600 At least 200 percent but less than 225 percent...................$2,100 At least 225 percent but less than 250 percent...................$2,600 At least 250 percent............................................$3,100.

   Inserted: "(ii) 2002 model year city fuel economy.--For purposes of clause (i), the 2002 model year city fuel economy with respect to a vehicle shall be determined on a gasoline gallon equivalent basis as determined by the Administrator of the Environmental Protection Agency using the tables provided in subsection (b)(2)(B) with respect to such vehicle.

   Inserted: "(B) Conservation credit.--The amount determined under subparagraph (A) with respect to a new advanced lean burn technology motor vehicle shall be increased by the conservation credit amount determined in accordance with the following table:

   Inserted: "In the case of a vehicle which achieves a lifetime fuel savings (expressed in gallons of gasoline) The conservation credit amountis--

   Inserted: At least 1,200 but less than 1,800...............................$700 At least 1,800 but less than 2,400.............................$1,200 At least 2,400 but less than 3,000.............................$1,700 At least 3,000..................................................$2,200.

   Inserted: "(C) Option to use like vehicle.--At the option of the vehicle manufacturer, the increase for fuel efficiency and conservation credit may be calculated by comparing the new qualified advanced lean burn technology motor vehicle to a like vehicle.

   Inserted: "(3) New advanced lean burn technology motor vehicle.--For purposes of this subsection, the term 'new advanced lean burn technology motor vehicle' means a passenger automobile or a light truck--

   Inserted: "(A) with an internal combustion engine which--

   Inserted: "(i) is designed to operate primarily using more air than is necessary for complete combustion of the fuel,

   Inserted: "(ii) incorporates direct injection,

   Inserted: "(iii) achieves at least 125 percent of the 2002 model year city fuel economy,

   Inserted: "(iv) for 2004 and later model vehicles, has received a certificate that such vehicle meets or exceeds--

   Inserted: "(I) in the case of a vehicle having a gross vehicle weight rating of 6,000 pounds or less, the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle, and

   Inserted: "(II) in the case of a vehicle having a gross vehicle weight rating of more than 6,000 pounds but not more than 8,500 pounds, the Bin 8 Tier II emission standard which is so established.

   Inserted: "(B) the original use of which commences with the taxpayer,

   Inserted: "(C) which is acquired for use or lease by the taxpayer and not for resale, and

   Inserted: "(D) which is made by a manufacturer.

   Inserted: "(4) Like vehicle.--The term 'like vehicle' for a new qualified advanced lean burn technology motor vehicle derived from a conventional production vehicle produced in the same model year means a model that is equivalent in the following areas:

   Inserted: "(A) Body style (2-door or 4-door),

   Inserted: "(B) Transmission (automatic or manual),

   Inserted: "(C) Acceleration performance ( 0.05 seconds).

   Inserted: "(D) Drivetrain (2-wheel drive or 4-wheel drive).

   Inserted: "(E) Certification by the Administrator of the Environmental Protection Agency.

   Inserted: "(5) Lifetime fuel savings.--For purposes of this subsection, the term 'lifetime fuel savings' means, in the case of any new advanced lean burn technology motor vehicle, an amount equal to the excess (if any) of--

   Inserted: "(A) 120,000 divided by the 2002 model year city fuel economy for the vehicle inertia weight class, over

   Inserted: "(B) 120,000 divided by the city fuel economy for such vehicle.

   Inserted: "(d) New Qualified Hybrid Motor Vehicle Credit.--

   Inserted: "(1) In general.--For purposes of subsection (a), the new qualified hybrid motor vehicle credit determined under this subsection with respect to a new qualified hybrid motor vehicle placed in service by the taxpayer during the taxable year is the credit amount determined under paragraph (2) or (3).

   Inserted: "(2) Credit amount for lighter vehicles.--In the case of a new qualified hybrid motor vehicle which is a passenger automobile, medium duty passenger vehicle, or light truck, the credit amount determined under this paragraph is equal to the sum of following amounts:

   Inserted: "(A) Fuel economy.--The amount which would be determined under subsection (c)(2)(A) if such vehicle were a vehicle referred to in such subsection.

   Inserted: "(B) Conservation credit.--The amount which would be determined under subsection (c)(2)(B) if such vehicle were a vehicle referred to in such subsection.

   Inserted: "(iii) Option to use like vehicle.--For purposes of clause (i), at the option of the vehicle manufacturer, the increase for fuel efficiency and conservation credit may be calculated by comparing the new qualified hybrid motor vehicle to a like vehicle (as defined in subsection (c)(4)).

   Inserted: "(3) Credit amount for heavier vehicles.--

   Inserted: "(A) In general.--In the case of a new qualified hybrid motor vehicle which is a heavy duty hybrid motor vehicle, the credit amount determined under this paragraph is an amount equal to the applicable percentage of the incremental cost of such vehicle placed in service by the taxpayer during the taxable year.

   Inserted: "(B) Incremental cost.--For purposes of this paragraph, the incremental cost of any heavy duty hybrid motor vehicle is equal to the amount of the excess of the manufacturer's suggested retail price for such vehicle over such price for a comparable gasoline or diesel fuel motor vehicle of the same model, to the extent such amount does not exceed--

   Inserted: "(i) $7,500, if such vehicle has a gross vehicle weight rating of more than 8,500 pounds but not more than 14,000 pounds,

   Inserted: "(ii) $15,000, if such vehicle has a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and

   Inserted: "(iii) $30,000, if such vehicle has a gross vehicle weight rating of more than 26,000 pounds.

   Inserted: "(C) Applicable percentage.--For purposes of subparagraph (A), the applicable percentage shall be determined in accordance with the following table:

   Inserted: "If percent increase in fuel economy of hybrid over comparable vehicle is: The applicable percentage is:

   Inserted: At least 30 but less than 40 percent........................20 percent.

   Inserted: At least 40 but less than 50 percent........................30 percent.

   Inserted: At least 50 percent.........................................40 percent.

   Inserted: "(4) New qualified hybrid motor vehicle.--For purposes of this subsection--

   Inserted: "(A) In general.--The term 'new qualified hybrid motor vehicle' means a motor vehicle--

   Inserted: "(i) which draws propulsion energy from onboard sources of stored energy which are both--

   Inserted: "(I) an internal combustion or heat engine using consumable fuel, and

   Inserted: "(II) a rechargeable energy storage system,

   Inserted: "(ii) which, in the case of a passenger automobile, medium duty passenger vehicle, or light truck--

   Inserted: "(I) having a gross vehicle weight rating of 6,000 pounds or less, has received a certificate that such vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle,

   Inserted: "(II) having a gross vehicle weight rating of more than 6,000 pounds but not more than 8,500 pounds, has received a certificate that such vehicle meets or exceeds the Bin 8 Tier II emission standard which is so established,

   Inserted: "(III) has received a certificate of conformity under the Clean Air Act and meets or exceeds the equivalent qualifying California low emission vehicle standard under section 243(e)(2) of the Clean Air Act for that make and model year, and

   Inserted: "(IV) has a maximum available power of at least 5 percent,

   Inserted: "(iii) which, in the case of a heavy duty hybrid motor vehicle--

   Inserted: "(I) having a gross vehicle weight rating of more than 8,500 but not more than 14,000 pounds, has a maximum available power of at least 10 percent, and

   Inserted: "(II) having a gross vehicle weight rating of more than 14,000 pounds, has a maximum available power of at least 15 percent,

   Inserted: "(iv) the original use of which commences with the taxpayer,

   Inserted: "(v) which is acquired for use or lease by the taxpayer and not for resale, and

   Inserted: "(vi) which is made by a manufacturer.

   Inserted: "(B) Consumable fuel.--For purposes of subparagraph (A)(i)(I), the term 'consumable fuel' means any solid, liquid, or gaseous matter which releases energy when consumed by an auxiliary power unit.

   Inserted: "(C) Maximum available power.--

   Inserted: "(i) Passenger automobile, medium duty passenger vehicle, or light truck.--For purposes of subparagraph (A)(ii)(II), the term 'maximum available power' means the maximum power available from the rechargeable energy storage system, during a standard 10 second pulse power or equivalent test, divided by such maximum power and the SAE net power of the heat engine.

   Inserted: "(ii) Heavy duty hybrid motor vehicle.--For purposes of subparagraph (A)(iii), the term 'maximum available power' means the maximum power available from the rechargeable energy storage system, during a standard 10 second pulse power or equivalent test, divided by the vehicle's total traction power. The term 'total traction power' means the sum of the peak power from the rechargeable energy storage system and the heat engine peak power of the vehicle, except that if such storage system is the sole means by which the vehicle can be driven, the total traction power is the peak power of such storage system.

   Inserted: "(4) Heavy duty hybrid motor vehicle.--For purposes of this subsection, the term 'heavy duty hybrid motor vehicle' means a new qualified hybrid motor vehicle which has a gross vehicle weight rating of more than 8,500 pounds. Such term does not include a medium duty passenger vehicle.

   Inserted: "(e) New Qualified Alternative Fuel Motor Vehicle Credit.--

   Inserted: "(1) Allowance of credit.--Except as provided in paragraph (5), the new qualified alternative fuel motor vehicle credit determined under this subsection is an amount equal to the applicable percentage of the incremental cost of any new qualified alternative fuel motor vehicle placed in service by the taxpayer during the taxable year.

   Inserted: "(2) Applicable percentage.--For purposes of paragraph (1), the applicable percentage with respect to any new qualified alternative fuel motor vehicle is--

   Inserted: "(A) 50 percent, plus

   Inserted: "(B) 30 percent, if such vehicle--

   Inserted: "(i) has received a certificate of conformity under the Clean Air Act and meets or exceeds the most stringent standard available for certification under the Clean Air Act for that make and model year vehicle (other than a zero emission standard), or

   Inserted: "(ii) has received an order certifying the vehicle as meeting the same requirements as vehicles which may be sold or leased in California and meets or exceeds the most stringent standard available for certification under the State laws of California (enacted in accordance with a waiver granted under section 209(b) of the Clean Air Act) for that make and model year vehicle (other than a zero emission standard). For purposes of the preceding sentence, in the case of any new qualified alternative fuel motor vehicle which weighs more than 14,000 pounds gross vehicle weight rating, the most stringent standard available shall be such standard available for certification on the date of the enactment of the Energy Tax Incentives Act.

   Inserted: "(3) Incremental cost.--For purposes of this subsection, the incremental cost of any new qualified alternative fuel motor vehicle is equal to the amount of the excess of the manufacturer's suggested retail price for such vehicle over such price for a gasoline or diesel fuel motor vehicle of the same model, to the extent such amount does not exceed--

   Inserted: "(A) $5,000, if such vehicle has a gross vehicle weight rating of not more than 8,500 pounds,

   Inserted: "(B) $10,000, if such vehicle has a gross vehicle weight rating of more than 8,500 pounds but not more than 14,000 pounds,

   Inserted: "(C) $25,000, if such vehicle has a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and

   Inserted: "(D) $40,000, if such vehicle has a gross vehicle weight rating of more than 26,000 pounds.

   Inserted: "(4) New qualified alternative fuel motor vehicle.--For purposes of this subsection--

   Inserted: "(A) In general.--The term 'new qualified alternative fuel motor vehicle' means any motor vehicle--

   Inserted: "(i) which is only capable of operating on an alternative fuel,

   Inserted: "(ii) the original use of which commences with the taxpayer,

   Inserted: "(iii) which is acquired by the taxpayer for use or lease, but not for resale, and

   Inserted: "(iv) which is made by a manufacturer.

   Inserted: "(B) Alternative fuel.--The term 'alternative 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.

   Inserted: "(5) Credit for mixed-fuel vehicles.--

   Inserted: "(A) In general.--In the case of a mixed-fuel vehicle placed in service by the taxpayer during the taxable year, the credit determined under this subsection is an amount equal to--

   Inserted: "(i) in the case of a 75/25 mixed-fuel vehicle, 70 percent of the credit which would have been allowed under this subsection if such vehicle was a qualified alternative fuel motor vehicle, and

   Inserted: "(ii) in the case of a 90/10 mixed-fuel vehicle, 90 percent of the credit which would have been allowed under this subsection if such vehicle was a qualified alternative fuel motor vehicle.

   Inserted: "(B) Mixed-fuel vehicle.--For purposes of this subsection, the term 'mixed-fuel vehicle' means any motor vehicle described in subparagraph (C) or (D) of paragraph (3), which--

   Inserted: "(i) is certified by the manufacturer as being able to perform efficiently in normal operation on a combination of an alternative fuel and a petroleum-based fuel,

   Inserted: "(ii) either--

   Inserted: "(I) has received a certificate of conformity under the Clean Air Act, or

   Inserted: "(II) has received an order certifying the vehicle as meeting the same requirements as vehicles which may be sold or leased in California and meets or exceeds the low emission vehicle standard under section 88.105-94 of title 40, Code of Federal Regulations, for that make and model year vehicle,

   Inserted: "(iii) the original use of which commences with the taxpayer,

   Inserted: "(iv) which is acquired by the taxpayer for use or lease, but not for resale, and

   Inserted: "(v) which is made by a manufacturer.

   Inserted: "(C) 75/25 mixed-fuel vehicle.--For purposes of this subsection, the term '75/25 mixed-fuel vehicle' means a mixed-fuel vehicle which operates using at least 75 percent alternative fuel and not more than 25 percent petroleum-based fuel.

   Inserted: "(D) 90/10 mixed-fuel vehicle.--For purposes of this subsection, the term '90/10 mixed-fuel vehicle' means a mixed-fuel vehicle which operates using at least 90 percent alternative fuel and not more than 10 percent petroleum-based fuel.

   Inserted: "(f) Limitation on Number of New Qualified Hybrid and Advanced Lean-burn Technology Vehicles Eligible for Credit.--

   Inserted: "(1) In general.--In the case of a qualified vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (c) or (d) shall be allowed.

   Inserted: "(2) Phaseout period.--For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of qualified vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after the date of the enactment of this section is at least 80,000.

   Inserted: "(3) Applicable percentage.--For purposes of paragraph (1), the applicable percentage is--

   Inserted: "(A) 50 percent for the first 2 calendar quarters of the phaseout period,

   Inserted: "(B) 25 percent for the 3d and 4th calendar quarters of the phaseout period, and

   Inserted: "(C) 0 percent for each calendar quarter thereafter.

   Inserted: "(4) Controlled groups.--

   Inserted: "(A) In general.--For purposes of this subsection, all persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single manufacturer.

   Inserted: "(B) Inclusion of foreign corporations.--For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof.

   Inserted: "(5) Qualified vehicle.--For purposes of this subsection, the term 'qualified vehicle' means any new qualified hybrid motor vehicle and any new advanced lean burn technology motor vehicle.

   Inserted: "(g) Application With Other Credits.--The credit allowed under subsection (a) for any taxable year shall not exceed the excess (if any) of--

   Inserted: "(1) the regular tax for the taxable year reduced by the sum of the credits allowable under subpart A and sections 27, 29, and 30, over

   Inserted: "(2) the tentative minimum tax for the taxable year.

   Inserted: "(h) Other Definitions and Special Rules.--For purposes of this section--

   Inserted: "(1) Motor vehicle.--The term 'motor vehicle' has the meaning given such term by section 30(c)(2).

   Inserted: "(2) City fuel economy.--The city fuel economy with respect to any vehicle shall be measured in a manner which is substantially similar to the manner city fuel economy is measured in accordance with procedures under part 600 of subchapter Q of chapter I of title 40, Code of Federal Regulations, as in effect on the date of the enactment of this section.

   Inserted: "(3) Other terms.--The terms 'automobile', 'passenger automobile', 'medium duty passenger vehicle', 'light truck', and 'manufacturer' have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).

   Inserted: "(4) Reduction in basis.--For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (e)).

   Inserted: "(5) No double benefit.--The amount of any deduction or other credit allowable under this chapter--

   Inserted: "(A) for any incremental cost taken into account in computing the amount of the credit determined under subsection (e) shall be reduced by the amount of such credit attributable to such cost, and

   Inserted: "(B) with respect to a vehicle described under subsection (b), (c), or (d) shall be reduced by the amount of credit allowed under subsection (a) for such vehicle for the taxable year.

   Inserted: "(6) Property used by tax-exempt entity.--In the case of a vehicle whose use is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle 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 vehicle (determined without regard to subsection (g)).

   Inserted: "(7) 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 respect to the portion of the cost of any property taken into account under section 179.

   Inserted: "(8) Recapture.--The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit (including recapture in the case of a lease period of less than the economic life of a vehicle).

   Inserted: "(9) Election to not take credit.--No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.

   Inserted: "(10) Carryback and carryforward allowed.--

   Inserted: "(A) In general.--If the credit allowable under subsection (a) for a taxable year exceeds the amount of the limitation under subsection (g) for such taxable year (in this paragraph referred to as the 'unused credit year'), such excess shall be a credit carryback to each of the 3 taxable years preceding the unused credit year and a credit carryforward to each of the 20 taxable years following the unused credit year, except that no excess may be carried to a taxable year beginning before the date of the enactment of this section. The preceding sentence shall not apply to any credit carryback if such credit carryback is attributable to property for which a deduction for depreciation is not allowable.

   Inserted: "(B) Rules.--Rules similar to the rules of section 39 shall apply with respect to the credit carryback and credit carryforward under subparagraph (A).

   Inserted: "(11) Interaction with air quality and motor vehicle safety standards.--Unless otherwise provided in this section, a motor vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with--

   Inserted: "(A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the Clean Air Act), and

   Inserted: "(B) the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.

   Inserted: "(g) Regulations.--

   Inserted: "(1) In general.--Except as provided in paragraph (2), the Secretary shall promulgate such regulations as necessary to carry out the provisions of this section.

   Inserted: "(2) Coordination in prescription of certain regulations.--The Secretary of the Treasury, in coordination with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall prescribe such regulations as necessary to determine whether a motor vehicle meets the requirements to be eligible for a credit under this section.

   Inserted: "(h) Termination.--This section shall not apply to any property purchased after--

   Inserted: "(1) in the case of a new qualified fuel cell motor vehicle (as described in subsection (b)), December 31, 2015,

   Inserted: "(2) in the case of a new advanced lean burn technology motor vehicle (as described in subsection (c)) or a new qualified hybrid motor vehicle (as described in subsection (d)), December 31, 2009, and

   Inserted: "(3) in the case of a new qualified alternative fuel vehicle (as described in subsection (e)), December 31, 2010.".

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Section 1016(a), as amended by this Act, is amended by striking "and" at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting ", and", and by adding at the end the following new paragraph:

   Inserted: "(37) to the extent provided in section 30B(h)(4).".

   Inserted: (2) Section 55(c)(2), as amended by this Act, is amended by inserting "30B(g)," after "30(b)(2),".

   Inserted: (3) Section 6501(m) is amended by inserting "30B(h)(9)," after "30(d)(4),".

   Inserted: (4) The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 30A the following new item:

   Inserted: "Sec. 30B. Alternative motor vehicle credit.".

   Inserted: (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.

   Inserted: (d) Sticker Information Required at Retail Sale.--

   Inserted: (1) In general.--The Secretary of the Treasury shall issue regulations under which each qualified vehicle sold at retail shall display a notice--

   Inserted: (A) that such vehicle is a qualified vehicle, and

   Inserted: (B) that the buyer may not benefit from the credit allowed under section 30B of the Internal Revenue Code of 1986 if such buyer has insufficient tax liability.

   Inserted: (2) Qualified vehicle.--For purposes of paragraph (1), the term "qualified vehicle" means a vehicle with respect to which a credit is allowed under section 30B of the Internal Revenue Code of 1986.

   Inserted: (e) Nonapplication of Section .--Notwithstanding any other provision of this Act, the provisions of, and amendments made by, section 1531 of this Act shall be null and void.

   Inserted: SEC. 1702. CREDIT FOR INSTALLATION OF ALTERNATIVE FUEL REFUELING STATIONS.

   Inserted: (a) In General.--Subpart B of part IV of subchapter 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:

   Inserted: "SEC. 30C. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

   Inserted: "(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.

   Inserted: "(b) Limitation.--The credit allowed under subsection (a) with respect to any alternative fuel vehicle refueling property shall not exceed--

   Inserted: "(1) $50,000 in the case of a property of a character subject to an allowance for depreciation, and

   Inserted: "(2) $1,000 in any other case.

   Inserted: "(c) Qualified Alternative Fuel Vehicle Refueling Property.--For purposes of this section--

   Inserted: "(1) In general.--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, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, and hydrogen.

   Inserted: "(2) Residential property.--In the case of any property installed on property which is used as the principal residence (within the meaning of section 121) of the taxpayer, paragraph (1) of section 179A(d) shall not apply.

   Inserted: "(d) Application With Other Credits.--The credit allowed under subsection (a) for any taxable year shall not exceed the excess (if any) of--

   Inserted: "(1) the regular tax for the taxable year reduced by the sum of the credits allowable under subpart A and sections 27, 29, 30, and 30B, over

   Inserted: "(2) the tentative minimum tax for the taxable year.

   Inserted: "(e) Carryforward Allowed.--

   Inserted: "(1) In general.--If the credit amount allowable 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.

   Inserted: "(2) Rules.--Rules similar to the rules of section 39 shall apply with respect to the credit carryforward under paragraph (1).

   Inserted: "(f) Special Rules.--For purposes of this section--

   Inserted: "(1) Basis reduction.--The basis of any property shall be reduced by the portion of the cost of such property taken into account under subsection (a).

   Inserted: "(2) 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).

   Inserted: "(3) Property used by tax-exempt entity.--In the case of any qualified alternative fuel vehicle 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)).

   Inserted: "(4) Property used outside united states not qualified.--No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.

   Inserted: "(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 section apply to such property.

   Inserted: "(6) Recapture rules.--Rules similar to the rules of section 179A(e)(4) shall apply.

   Inserted: "(g) Regulations.--The Secretary shall prescribe such regulations as necessary to carry out the provisions of this section.

   Inserted: "(h) Termination.--This section shall not apply to any property placed in service--

   Inserted: "(1) in the case of property relating to hydrogen, after December 31, 2014, and

   Inserted: "(2) in the case of any other property, after December 31, 2009.".

   Inserted: (b) Modifications to Extension of Deduction for Certain Refueling Property.--

   Inserted: (1) Increase in deduction for hydrogen infrastructure.--Section 179A(b)(2)(A)(i) is amended by inserting "($200,000 in the case of property relating to hydrogen)" after "$100,000".

   Inserted: (2) Extension of deduction.--Subsection (f) of section 179A is amended to read as follows:

   Inserted: "(f) Termination.--This section shall not apply to any property placed in service--

   Inserted: "(1) in the case of property relating to hydrogen, after December 31, 2014, and

   Inserted: "(2) in the case of any other property, after December 31, 2009.".

   Inserted: (c) Incentive for Production of Hydrogen at Qualified Clean-fuel Vehicle Refueling Property.--Section 179A(d) (defining qualified clean-fuel vehicle refueling property) is amended by adding at the end the following new flush sentence: "In the case of clean-burning fuel which is hydrogen produced from another clean-burning fuel, paragraph (3)(A) shall be applied by substituting 'production, storage, or dispensing' for 'storage or dispensing' both places it appears.".

   Inserted: (d) Conforming Amendments.--

   Inserted: (1) Section 1016(a), as amended by this Act, is amended by striking "and" at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting ", and", and by adding at the end the following new paragraph:

   Inserted: "(38) to the extent provided in section 30C(f).".

   Inserted: (2) Section 55(c)(2), as amended by this Act, is amended by inserting "30C(e)," after "30B(e),".

   Inserted: (3) Section 6501(m) is amended by inserting "30C(f)(5)," after "30B(f)(9),".

   Inserted: (4) 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:

   Inserted: "Sec. 30C. Clean-fuel vehicle refueling property credit.".

   Inserted: (e) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2005, in taxable years ending after such date.

   Inserted: (f) Nonapplication of Section.--Notwithstanding any other provision of this Act, the provisions of, and amendments made by, section 1533 of this Act shall be null and void.

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