[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 377 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 377

   To amend the Internal Revenue Code of 1986 to provide additional 
  incentives for the use of clean-fuel vehicles by businesses within 
  empowerment zones, enterprise communities, and renewal communities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 31, 2001

 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 additional 
  incentives for the use of clean-fuel vehicles by businesses within 
  empowerment zones, enterprise communities, and renewal communities.

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

SECTION 1. CLEAN-FUEL VEHICLES USED BY ENTERPRISE ZONE BUSINESSES AND 
              RENEWAL COMMUNITY BUSINESSES.

    (a) Empowerment Zones.--Part III of subchapter U of chapter 1 of 
the Internal Revenue Code of 1986 (relating to additional incentives 
for empowerment zones) is amended--
            (1) by redesignating subpart D as subpart E,
            (2) by redesignating sections 1397C, 1397D, 1397E, and 
        1397F as sections 1397D, 1397E, 1397F, and 1397G, respectively, 
        and
            (3) by inserting after subpart C the following new subpart:

            ``Subpart D--Incentives for Clean-Fuel Vehicles

                              ``Sec. 1397C. Incentives for clean-fuel 
                                        vehicles.

``SEC. 1397C. INCENTIVES FOR CLEAN-FUEL VEHICLES.

    ``(a) Zone Clean Fuels Credit.--For purposes of section 38, in the 
case of an eligible enterprise zone business, the amount of the zone 
clean fuels credit determined under this section for the taxable year 
is the sum of--
            ``(1) the zone clean-fuel property credit, and
            ``(2) the zone clean-burning fuel use credit.
    ``(b) Zone Clean-Fuel Property Credit.--
            ``(1) In general.--The zone clean-fuel property credit is 
        the cost of--
                    ``(A) qualified clean-fuel vehicle property, plus
                    ``(B) qualified clean-fuel vehicle refueling 
                property.
        The credit under this section with respect to any property 
        shall be allowed for the taxable year in which such property is 
        placed in service by the eligible enterprise zone business.
            ``(2) Limitations.--
                    ``(A) Qualified clean-fuel vehicle property.--The 
                cost which may be taken into account under paragraph 
                (1)(A) with respect to any motor vehicle shall not 
                exceed--
                            ``(i) $2,000 in the case of a motor vehicle 
                        not described in clause (ii) or (iii),
                            ``(ii) $5,000 in the case of any truck or 
                        van with a gross vehicle weight rating greater 
                        than 10,000 pounds but not greater than 26,000 
                        pounds, or
                            ``(iii) $50,000 in the case of--
                                    ``(I) a truck or van with a gross 
                                vehicle weight rating greater than 
                                26,000 pounds, or
                                    ``(II) any bus which has a seating 
                                capacity of at least 20 adults (not 
                                including the driver).
                    ``(B) Qualified clean-fuel vehicle refueling 
                property.--
                            ``(i) In general.--The aggregate cost which 
                        may be taken into account under paragraph 
                        (1)(B) with respect to qualified clean-fuel 
                        vehicle refueling property placed in service by 
                        the eligible enterprise zone business during 
                        the taxable year at a location shall not exceed 
                        the lesser of--
                                    ``(I) $100,000, 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) 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) 
                        shall apply.
    ``(c) Zone Clean-Burning Fuel Use Credit.--The zone 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 enterprise 
zone business during the taxable year to propel qualified clean-fuel 
vehicle property.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Eligible enterprise zone business.--The term 
        `eligible enterprise zone business' means--
                    ``(A) an enterprise zone business (as defined in 
                section 1397D) located within an area that is an 
                empowerment zone or enterprise community and that is 
                within a nonattainment area (within the meaning of 
                section 171 of the Clean Air Act (42 U.S.C. 7501)), and
                    ``(B) a trade or business located outside of an 
                empowerment zone or enterprise community, but only with 
                respect to qualified clean-fuel vehicle property used 
                substantially within an area that is an empowerment 
                zone or enterprise community and that is within a 
                nonattainment area (within the meaning of section 171 
                of the Clean Air Act (42 U.S.C. 7501)).
        For purposes of this paragraph, section 1397D shall be applied 
        by substituting `empowerment zone or enterprise community' for 
        `empowerment zone' each place it appears.
            ``(2) Clean-burning fuel.--The term `clean-burning fuel' 
        has the meaning given to such term by section 179A, except that 
        such term includes compressed natural gas.
            ``(3) Qualified clean-fuel vehicle property.--The term 
        `qualified clean-fuel vehicle property' has the meaning given 
        to such term by section 179A(c) without regard to paragraph (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.
            ``(4) Qualified clean-fuel vehicle refueling property.--The 
        term `qualified clean-fuel vehicle refueling property' has the 
        meaning given to such term by section 179A(d).
            ``(5) 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.
    ``(e) Denial of Double Benefit.--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.''.
    (b) Renewal Communities.--Part III of subchapter X of chapter 1 of 
the Internal Revenue Code of 1986 (relating to additional incentives 
for renewal communities) is amended by adding at the end the following 
new section:

``SEC. 1400K. RENEWAL COMMUNITY CLEAN FUELS CREDIT.

    ``(a) In General.--For purposes of section 1397C--
            ``(1) a renewal community shall be treated as an 
        empowerment zone,
            ``(2) a renewal community business shall be treated as an 
        enterprise zone business, and
            ``(3) qualified renewal property shall be treated as 
        qualified zone property.''.
    (c) 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 (11), by striking 
the period at the end of paragraph (12) and inserting ``, plus'', and 
by adding at the end thereof the following new paragraph:
            ``(13) the zone clean fuels credit determined under section 
        1397C.''.
    (d) 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:
    ``(d) 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 1397C.''.
    (e) Credit Allowed Against Regular and Minimum Tax.--
            (1) In general.--Subsection (c) of section 38 of such Code 
        (relating to limitation based on amount of tax) is amended by 
        redesignating paragraph (3) as paragraph (4) and by inserting 
after paragraph (2) the following new paragraph:
            ``(3) Special rules for zone clean fuels credit.--
                    ``(A) In general.--In the case of the zone clean 
                fuels credit--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to the credit, 
                        and
                            ``(ii) in applying paragraph (1) to the 
                        credit--
                                    ``(I) subparagraph (A) thereof 
                                shall not apply, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be reduced by the credit 
                                allowed under subsection (a) for the 
                                taxable year (other than the zone clean 
                                fuels credit).
                    ``(B) Zone clean fuels credit.--For purposes of 
                this subsection, the term `zone clean fuels credit' 
                means the credit allowable under subsection (a) by 
                reason of section 1397B.''.
            (2) Conforming amendment.--Subclause (II) of section 
        38(c)(2)(A)(ii) of such Code is amended by inserting ``or the 
        zone clean fuels credit'' after ``employment credit''.
    (f) Limitation on Carryback.--Subsection (d) of section 39 of such 
Code is amended by adding at the end the following new paragraph:
            ``(9) No carryback of zone clean fuels credit before 
        effective date.--No portion of the unused business credit for 
        any taxable year which is attributable to the credit determined 
        under section 1397C may be carried back to any taxable year 
        ending before the date of the enactment of section 1397C.''.
    (g) Deduction for Certain Unused Business Credits.--Subsection (c) 
of section 196 of such Code is amended by striking ``and'' at the end 
of paragraph (7), by striking the period at the end of paragraph (8) 
and inserting ``, and'', and by adding after paragraph (8) the 
following new paragraph:
            ``(9) the empowerment zone clean fuels credit determined 
        under section 1397C.''.
    (h) Conforming Amendments.--
            (1) Paragraph (2) of section 1394(b) of such Code is 
        amended--
                    (A) by striking ``section 1397D'' and inserting 
                ``section 1397E'', and
                    (B) by striking ``section 1397D(a)(2)'' and 
                inserting ``section 1397E(a)(2)''.
            (2) Paragraph (3) of section 1394(b) of such Code is 
        amended--
                    (A) by striking ``section 1397C'' each place it 
                appears and inserting ``section 1397D'', and
                    (B) by striking ``section 1397C(d)'' and inserting 
                ``section 1397D(d)''.
            (3) Paragraph (3) of section 1394(f) of such Code is 
        amended by striking ``sections 1397C and 1397D'' both places it 
        appears and inserting ``sections 1397D and 1397E''.
            (4) Section 1397B(b)(1)(A)(ii) of such Code is amended by 
        striking ``section 1397C'' and inserting ``section 1397D''.
            (5) Sections 1400(e), 1400B(c), and 1400G of such Code are 
        each amended by striking ``section 1397C'' each place it 
        appears and inserting ``section 1397D''.
            (6) Section 1400J(b) of such Code is amended by striking 
        ``section 1397D'' each place it appears and inserting ``section 
        1397E''.
            (7) Section 45D(d) of such Code is amended--
                    (A) in paragraph (2)(A)(v) by striking ``section 
                1397C(e)'' and inserting ``section 1397D(e)'', and
                    (B) in paragraph (3) by striking ``section 
                1397C(d)'' and inserting ``section 1397D(d)''.
            (8) Section 1202(a)(2) of such Code is amended by striking 
        ``section 1397C(b)'' and inserting ``section 1397D(b)''.
            (9) The table of subparts for part III of subchapter U of 
        chapter 1 of such Code is amended by striking the last item and 
        inserting the following new items:

                              ``Subpart D. Incentives for Clean-Fuel 
                                        Vehicles.
                              ``Subpart E. General provisions.''.
            (10) The table of sections for subpart E of such part III 
        is amended to read as follows:

                              ``Sec. 1397E. Enterprise zone business 
                                        defined.
                              ``Sec. 1397E. Qualified zone property 
                                        defined.''.
            (11) The table of sections for part III of subchapter X of 
        chapter 1 of such Code is amended by adding at the end the 
        following new item:

                              ``Sec. 1400K. Renewal community clean 
                                        fuels credit.''.
    (i) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2000.
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