S.Amdt. 518

SA 518. Mr. HATCH submitted an amendment intended to be proposed to
amendment SA 98 proposed by Mr. Inouye (for himself and Mr. Baucus) to
the bill H.R. 1, making supplemental appropriations for job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and State and local fiscal
stabilization, for fiscal year ending September 30, 2009, and for other
purposes; which was ordered to lie on the table; as follows:

On page 470, after line 23, insert the following:

PART VII--ALTERNATIVE FUELS

SEC. 1171. EXTENSION OF ALCOHOL, ALCOHOL MIXTURE, ALTERNATIVE
FUEL, ALTERNATIVE FUEL MIXTURE, BIODIESEL, AND
RENEWABLE DIESEL FUEL CREDITS.

(a) Extension.--
(1) Alternative fuel credit.--Paragraph (5) of section
6426(d) is amended by striking ``December 31, 2009'' and all
that follows and inserting ``December 31, 2014 (December 31,
2009, in the case of any sale or use involving a fuel
described in paragraph (2)(E)).''.
(2) Alternative fuel mixture credit.--Paragraph (3) of
section 6426(e) is amended by striking ``December 31, 2009''
and all that follows and inserting ``December 31, 2014
(December 31, 2009, in the case of any sale or use involving
a fuel described in subsection (d)(2)(E)).''.
(3) Alternative fuel and alternative fuel mixture
payments.--Subparagraph (C) of section 6427(e)(6) is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2014 (December 31, 2009, in the case of a fuel described
in section 6426(d)(2)(E))''.
(4) Biodiesel and renewable diesel fuel credits.--Sections
40A(g), 6426(c)(6), and 6427(e)(6)(B) are each amended by
striking ``December 31, 2009'' and inserting ``December 31,
2014''.
(5) Alcohol fuel credits.--
(A) Section 40(e)(1)(A) is amended by striking ``December
31, 2010'' and inserting ``December 31, 2014''.
(B) Section 40(e)(1)(B) is amended by striking ``January 1,
2011'' and inserting ``January 1, 2015''.
(C) Section 6426(b)(6) is amended by striking ``December
31, 2010'' and inserting ``December 31, 2014''.
(D) Section 6427(e)(6)(A) is amended by striking ``December
31, 2010'' and inserting ``December 31, 2014''.
(b) Conforming Amendment.--The table contained in section
40(h)(2) is amended by striking ``2010'' in the last item and
inserting ``2014''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.

SEC. 1172. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL
MOTOR VEHICLE CREDIT.

(a) Extension.--Paragraph (4) of section 30B(j) is amended
by striking ``December 31, 2010'' and inserting ``December
31, 2014''.
(b) Inclusion of Bifuel Vehicles.--Clause (i) of section
30B(e)(4)(A) is amended to read as follows:
``(i) which--

``(I) is only capable of operating on an alternative fuel,
or

[[Page S1766]]

``(II) is capable of operating on alternative fuel and (but
not in combination with) gasoline or diesel fuel, if such
vehicle has an operating range of not less than 200 miles in
all cases when operating on alternative fuel,''.

(c) Increase in Applicable Percentage and Application to
Bifuel Vehicles.--
(1) In general.--Paragraph (2) of section 30B(e) is amended
to read as follows:
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage with respect to any new
qualified alternative fuel motor vehicle is--
``(A) in the case of a vehicle described in paragraph
(4)(A)(i)(I), 80 percent, and
``(B) in the case of a vehicle described in paragraph
(4)(A)(i)(II), 50 percent.''.
(2) Application to mixed-fuel vehicles.--Subparagraph (A)
of section 30B(e)(5) is amended by inserting ``described in
paragraph (4)(A)(i)(I)'' after ``qualified alternative fuel
motor vehicle'' each place it appears in clauses (i) and
(ii).
(d) Increase in Incremental Cost Limits.--Paragraph (3) of
section 30B(e) is amended--
(1) by striking ``$5,000'' in subparagraph (A) and
inserting ``$12,500'',
(2) by striking ``$10,000'' in subparagraph (B) and
inserting ``$20,000'',
(3) by striking ``$25,000'' in subparagraph (C) and
inserting ``$50,000'', and
(4) by striking ``$40,000'' in subparagraph (D) and
inserting ``$80,000''.
(e) Transferability of Credit.--Subsection (h) of section
30B is amended by adding at the end the following new
paragraph:
``(11) Transferability of credit.--
``(A) In general.--A taxpayer may transfer the credit
allowed under this section by reason of subsection (e)
through an assignment to any person. Such transfer may be
revoked only with the consent of the Secretary.
``(B) Regulations.--The Secretary shall prescribe such
regulations as necessary to ensure that any credit
transferred under subparagraph (A) is claimed once and not
reassigned by such other person.''.
(f) 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. 1173. ALLOWANCE OF ALTERNATIVE FUEL MOTOR VEHICLE
CREDITS AGAINST AMT.

(a) Business Credit.--Subparagraph (B) of section 38(c)(4),
as amended by this Act, is amended--
(1) by striking ``and'' at the end of clause (viii),
(2) by striking the period at the end of clause (ix) and
inserting ``, and'', and
(3) by adding at the end the following new clause:
``(x) the portion of the credit determined under section
30B by reason of subsection (e).''.
(b) Personal Credit.--
(1) In general.--Subsection (g) of section 30B is amended
by adding at the end the following new paragraph:
``(3) Special rule for new qualified alternative fuel motor
vehicles.--In the case of the portion of the credit
determined under subsection (a) by reason of subsection (e)--
``(A) this subsection shall be applied separately with
respect to such portion, and
``(B) such portion of such credit allowed (after the
application of paragraph (1)) for any taxable year shall not
exceed the excess (if any) of--
``(i) the sum of the regular tax liability (as defined in
section 26(b)) plus the tentative minimum tax for the taxable
year, reduced by
``(ii) the sum of the credits allowable under subpart A and
sections 27 and 30 for such taxable year.''.
(2) Conforming amendment.--Paragraph (2) of section 30B(g)
is amended by striking ``The credit'' and inserting ``Except
as provided in paragraph (3), the 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.
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