[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2510 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
                                S. 2510

 To amend the Internal Revenue Code of 1986 to allow a credit for the 
installation of hydrogen fueling stations and to exclude earnings from 
                 hydrogen fuel sales from gross income.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 8, 2004

   Mr. Wyden 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 allow a credit for the 
installation of hydrogen fueling stations and to exclude earnings from 
                 hydrogen fuel sales from gross income.

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

SECTION 1. CREDIT FOR INSTALLATION OF HYDROGEN FUELING STATIONS.

    (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 adding at the end the following new section:

``SEC. 30B. HYDROGEN-POWERED VEHICLE REFUELING PROPERTY CREDIT.

    ``(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 amount paid or incurred by the taxpayer during the 
taxable year for the qualified hydrogen-powered vehicle refueling 
property and the installation thereof.
    ``(b) Year Credit Allowed.--The credit allowed under subsection (a) 
shall be allowed in the taxable year in which the qualified hydrogen-
powered vehicle refueling property is placed in service by the 
taxpayer.
    ``(c) Definition of Qualified Hydrogen-Powered Vehicle Refueling 
Property.--The term `qualified hydrogen-powered vehicle refueling 
property' means any property (not including a building and its 
structural components) if--
            ``(1) such property is of a character subject to the 
        allowance for depreciation,
            ``(2) the original use of such property begins with the 
        taxpayer, and
            ``(3) such property is for the production, storage, or 
        dispensing of hydrogen fuel into the fuel tank of a motor 
        vehicle propelled by such fuel.
    ``(d) Application With Other Credits.--The credit allowed under 
subsection (a) for any taxable year shall not exceed the excess (if 
any) of--
            ``(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 30A, over
            ``(2) the tentative minimum tax for the taxable year.
    ``(e) Basis Reduction.--For purposes of this title, the basis of 
any property shall be reduced by the portion of the cost of such 
property taken into account under subsection (a).
    ``(f) 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).
    ``(g) Carryforward Allowed.--
            ``(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 (referred 
        to as the `unused credit year' in this subsection), such excess 
        shall be allowed as a credit carryforward for each of the 20 
        taxable years following the unused credit year.
            ``(2) Rules.--Rules similar to the rules of section 39 
        shall apply with respect to the credit carryforward under 
        paragraph (1).
    ``(h) Special Rules.--Rules similar to the rules of paragraphs (4) 
and (5) of section 179A(e) shall apply.
    ``(i) Regulations.--The Secretary shall prescribe such regulations 
as necessary to carry out the provisions of this section.
    ``(j) Termination.--This section shall not apply to any property 
placed in service after December 31, 2013.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (27), by striking the period at 
        the end of paragraph (28) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(29) to the extent provided in section 30B(e).''.
            (2) Section 55(c)(2) of such Code is amended by inserting 
        ``30B(d),'' after ``30(b)(3),''.
            (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 30A the following new item:

``Sec. 30B. Hydrogen-powered vehicle refueling property credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
the date of the enactment of this Act.

SEC. 2. EXCLUSION OF EARNINGS FROM HYDROGEN FUEL SALES.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 136 the 
following new section:

``SEC. 136A. INCOME FROM HYDROGEN FUEL SALES.

    ``(a) Exclusion.--Gross income shall not include income 
attributable to the sale of hydrogen fuel sold at retail for use in a 
hydrogen fuel cell vehicle.
    ``(b) Definition of Hydrogen Fuel Cell Vehicle.--For purposes of 
this section, the term `hydrogen fuel cell vehicle' means a motor 
vehicle (as defined in section 30(c)(2)) 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.
    ``(c) Termination.--This section shall not apply to income 
attributable to sales after December 31, 2013.''.
    (b) Conforming Amendment.--The table of sections for subpart B of 
part III of subchapter B of chapter 1 of such Code is amended by 
inserting after the item relating to section 136 the following new 
item:

        ``Sec. 136A. Income from hydrogen fuel sales.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to income received after December 31, 2003, in taxable years 
ending after such date.
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