S. 3876

A bill to amend the Internal Revenue Code of 1986 to extend and modify the alternative fuel vehicle refueling property credit.

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II

111th CONGRESS

2d Session

S. 3876

IN THE SENATE OF THE UNITED STATES

September 29, 2010

Mr. Wyden (for himself and Mr. Hatch) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to extend and modify the alternative fuel vehicle refueling property credit.

1.

Extension and modification of alternative fuel vehicle refueling property credit

(a)

Extension

Subsection (g) of section 30C of the Internal Revenue Code of 1986 is amended by striking placed in service— and all that follows and inserting placed in service after December 31, 2014.

(b)

Increased credit

(1)

Credit percentage

Subsection (a) of section 30C of the Internal Revenue Code of 1986 is amended by striking 30 percent and inserting 50 percent.

(2)

Dollar limitations

(A)

Increase and per device limitation

Paragraph (1) of section 30C(b) of such Code is amended to read as follows:

(1)

the greater of—

(A)

$100,000 for each type of clean-burning fuel (among all clean-burning fuels listed in subsection (c)(2)) utilized in property placed in service at the location by the taxpayer during the taxable year, or

(B)

$10,000 multiplied by the number of devices placed in service at the location by the taxpayer during the taxable year,

in the case of a property of a character subject to an allowance for depreciation, and

.

(B)

Nondepreciable property

Paragraph (2) of section 30C(b) of such Code is amended by striking $1,000 and inserting $2,000.

(3)

Device

Subsection (e) of section 30C of such Code is amended by adding at the end the following new paragraph:

(7)

Device

For the purposes of subsection (b)(1), the term device means an individual item of property, whether a stand-alone item or part of property that includes multiple devices, which functions to refuel or recharge one alternative fuel vehicle at a time.

.

(4)

Conforming amendment

Paragraph (6) of section 30C(e) of such Code is amended—

(A)

by inserting and which is placed in service before the date of the enactment of paragraph (8) after hydrogen in subparagraph (A), and

(B)

by striking $30,000 in subparagraph (B) and inserting $100,000.

(c)

Treatment of personal credit

(1)

In general

Paragraph (2) of section 30C(d) of the Internal Revenue Code of 1986 is amended to read as follows:

(2)

Personal credit

(A)

In general

For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.

(B)

Limitation based on amount of tax

In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of—

(i)

the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

(ii)

the sum of the credits allowable under subpart A (other than this section and sections 25D and 30D) and section 27 for the taxable year.

.

(2)

Conforming amendment

Clause (ii) of section 30D(c)(2)(B) of such Code is amended by striking section 25D and inserting sections 25D and 30C.

(d)

Treatment of property used by tax-Exempt entity

Paragraph (2) of section 30C(e) of the Internal Revenue Code of 1986 is amended—

(1)

by striking the last sentence, and

(2)

by inserting (including use by an Indian tribal government) after paragraph (3) or (4) of section 50(b).

(e)

Joint ownership of alternative fuel vehicle refueling property

Subsection (e) of section 30C of the Internal Revenue Code of 1986, as amended by subsection (b), is amended by adding at the end the following new paragraph:

(8)

Joint ownership of alternative fuel vehicle refueling property

(A)

In general

Any qualified alternative fuel vehicle refueling property shall not fail to be treated as such property solely because such property is placed in service with respect to 2 or more dwelling units.

(B)

Limits applied separately

In the case of any qualified alternative fuel vehicle refueling property which is placed in service with respect to 2 or more dwelling units, this section (other than this subparagraph) shall be applied separately with respect to the portion of such property attributable to each such dwelling unit.

.

(f)

Definition of alternative fuel vehicle refueling property

(1)

In general

Paragraph (3) of section 179A(d) of the Internal Revenue Code of 1986 is amended to read as follows:

(3)

such property is—

(A)

for the generation, storage, compression, blending, or dispensing of a clean-burning fuel into the fuel tank of a motor vehicle propelled by such fuel, but only if the generation, storage, compression, or dispensing of such fuel is at the point where such fuel is delivered into the fuel tank of the motor vehicle, or

(B)

for the recharging of motor vehicles propelled by electricity (including property relating to providing electricity for such recharging or otherwise necessary for such recharging property).

.

(2)

Building components

Subsection (d) of section 179A of such Code is amended by striking and its structural components.

(g)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.