[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3376 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3376

 To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax to taxpayers who use certain clean-burning fuels as a motor 
                             vehicle fuel.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 5, 1998

  Mr. Ensign 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 allow a credit against 
income tax to taxpayers who use certain clean-burning fuels as a motor 
                             vehicle fuel.

    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 Burning Fuels Incentive Act of 
1998''.

SEC. 2. CREDIT FOR USE OF CLEAN BURNING FUELS AS MOTOR VEHICLE FUEL.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credit, 
etc.) is amended by inserting after section 27 the following new 
section:

``SEC. 28. CREDIT FOR USE OF CLEAN BURNING FUELS AS MOTOR VEHICLE FUEL.

    ``(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 50 cents for each gasoline gallon equivalent of clean burning 
fuel used by the taxpayer during the taxable year as a fuel to propel 
any qualified motor vehicle.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Clean burning fuel.--The term `clean burning fuel' 
        means natural gas, compressed natural gas, liquefied natural 
        gas, liquefied petroleum gas, and any liquid at least 85 
        percent of which consists of methanol.
            ``(2) Gasoline gallon equivalent.--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.
            ``(3) Qualified motor vehicle.--
                    ``(A) In general.--The term `qualified motor 
                vehicle' means any motor vehicle (as defined in section 
                179A(e)) which meets any applicable Federal or State 
                emissions standards with respect to each fuel by which 
                such vehicle is designed to be propelled.
                    ``(B) Exception.--Such term shall not include any 
                vehicle which is placed in service on or before 
                December 31, 1997, if such vehicle was capable of being 
                propelled by a clean burning fuel at any time before 
                such date.
    ``(c) Special Rules.--
            ``(1) Application with other credits.--The credit allowed 
        by subsection (a) for any taxable year shall not exceed the 
        excess (if any) of--
                    ``(A) the regular tax for the taxable year reduced 
                by the sum of the credits allowable under subpart A and 
                section 27, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
            ``(2) Disallowance of deduction.--Any deduction allowable 
        under this chapter for fuel taken into account in computing the 
        amount of the credit determined under subsection (a) shall be 
        reduced by the amount of such credit attributable to such fuel.
            ``(3) Election to have credit not apply.--
                    ``(A) In general.--A taxpayer may elect to have 
                this section not apply for any taxable year.
                    ``(B) Time for making election.--An election under 
                subparagraph (A) for any taxable year may be made (or 
                revoked) at any time before the expiration of the 3-
                year period beginning on the last date prescribed by 
                law for filing the return for such taxable year 
                (determined without regard to extensions).
    ``(d) Termination.--This section shall not apply to any fuel used 
after December 31, 2004.''.
    (b) Conforming Amendments.--
            (1) Subparagraph (A) of section 29(b)(6) of such Code is 
        amended by striking ``section 27'' and inserting ``sections 27 
        and 28''.
            (2) Subparagraph (A) of section 30(b)(3) of such Code is 
        amended by striking ``sections 27 and 29'' and inserting 
        ``sections 27, 28, and 29''.
            (3) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 27 the following new item:

                              ``Sec. 28. Credit for use of clean 
                                        burning fuels as motor vehicle 
                                        fuel.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel used after December 31, 1997, in taxable years ending 
after such date.
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