109 HR 5703 IH: To amend the Internal Revenue Code of 1986 to provide a U.S. House of Representatives 2006-06-28 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 5703 IN THE HOUSE OF REPRESENTATIVES June 28, 2006 Mr. Meehan introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Internal Revenue Code of 1986 to provide a credit for the purchase of qualified flexible fuel motor vehicles, and for other purposes.

1.

Short title

This Act may be cited as the Green Vehicles Promotion Act of 2006.

2.

Qualified flexible fuel motor vehicle credit

(a)

In general

Section 30B of the Internal Revenue Code of 1986 (relating to alternative motor vehicle credit) is amended— (1)in subsection (a) by striking and at the end of paragraph (3), by striking the period and inserting , and at the end of paragraph (4), and by adding at the end the following new paragraph: (5)the qualified flexible fuel motor vehicle credit determined under subsection (f). , and (2)by redesignating subsections (f), (g), (h), (i), and (j) as subsections (g), (h), (i), (j), and (k), respectively, and by inserting after subsection (e) the following new subsection: (f)

Qualified flexible fuel motor vehicle credit

(1)

Allowance of credit

For purposes of subsection (a), the qualified flexible fuel motor vehicle credit determined under this subsection for the taxable year is an amount equal to the sum of— (A)$100 for each qualified flexible fuel motor vehicle placed in service by the taxpayer during the taxable year that is not a new qualified hybrid motor vehicle (as described in subsection (d)(3)), plus (B)$200 for each qualified flexible fuel motor vehicle placed in service by the taxpayer during the taxable year that is a new qualified hybrid motor vehicle (as described in subsection (d)(3)). (2)

Qualified flexible fuel motor vehicle

For purposes of this subsection— (A)

In general

The term qualified flexible fuel motor vehicle means a motor vehicle that meets the requirements of subparagraph (B) and is designed so that the vehicle is propelled by an engine which can use as a fuel a gasoline mixture of which 85 percent (or another percentage of not less than 70 percent, as the Secretary may determine, by rule, to provide for requirements relating to cold start, safety, or vehicle functions) of the volume of consists of ethanol. (B)

Other requirements

A vehicle meets the requirements of this paragraph if— (i)the original use of the vehicle commences with the taxpayer, (ii)the vehicle is acquired for use or lease by the taxpayer and not for resale, and (iii)the vehicle is made by a manufacturer in the United States. . (b)

Termination

Subsection (k) of section 30B of such Code (as redesignated by subsection (a)) is amended by striking and at the end of paragraph (3), by striking the period and inserting , and at the end of paragraph (4), and by adding at the end the following new paragraph: (5)in the case of a qualified flexible fuel motor vehicle (as described in subsection (f)(2)), December 31, 2010. . (c)

Conforming amendments

(1)Paragraph (4) of section 30B(i) of such Code (as redesignated by subsection (a)) is amended by striking subsection (g) and inserting subsection (h). (2)Paragraph (6) of section 30B(i) of such Code (as redesignated by subsection (a)) is amended by striking subsection (g) each place it appears and inserting subsection (h). (3)Paragraph (25) of section 38(b) of such Code is amended by striking section 30B(g)(1) and inserting section 30B(h)(1). (4)Paragraph (3) of section 55(c) of such Code is amended by striking 30B(g)(2) and inserting 30B(h)(2). (5)Paragraph (36) of section 1016(a) of such Code is amended by striking section 30B(h)(4) and inserting section 30B(i)(4). (6)Subsection (m) of section 6501 of such Code is amended by striking 30B(h)(9) and inserting 30B(i)(9). (d)

Effective date

The amendments made by this section shall apply to purchases made after the date of the enactment of this Act, in taxable years ending after such date.

3.

Credit for conversion of motor vehicle to qualified flexible fuel motor vehicle

(a)

In general

Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section:

25E.

Credit for conversion of motor vehicle to qualified flexible fuel motor vehicle

(a)

Allowance of credit

In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 100 percent of the qualified flexible fuel motor vehicle conversion expenditures made by the taxpayer during the taxable year. (b)

Maximum credit

The credit allowed under subsection (a) for any taxable year shall not exceed $500. (c)

Qualified flexible fuel motor vehicle conversion expenditure

For purposes of this section— (1)

In general

The term qualified flexible fuel motor vehicle conversion expenditure means any expenditure directly related to the process of converting a motor vehicle owned by a taxpayer to a motor vehicle that meets the qualified flexible fuel motor vehicle requirement described in paragraph (2). (2)

Qualified flexible fuel motor vehicle requirement

A vehicle meets the qualified flexible fuel motor vehicle requirements described in this paragraph if the vehicle is propelled by an engine which can use as a fuel a gasoline mixture of which 85 percent (or another percentage of not less than 70 percent, as the Secretary may determine, by rule, to provide for requirements relating to cold start, safety, or vehicle functions) of the volume of consists of ethanol. (3)

Motor vehicle

The term motor vehicle means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. (d)

Termination

The credit allowed under this section shall not apply to expenditures made after December 31, 2010.

. (b)

Conforming amendment

The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item: Sec. 25E. Credit for conversion of motor vehicle to qualified flexible fuel motor vehicle. . (c)

Effective date

The amendments made by this section shall apply to expenditures made after December 31, 2006, in taxable years ending after such date.

4.

Use of CAFE penalties to build alternative fueling infrastructure

Section 32912 of title 49, United States Code, is amended by adding at the end the following: (e)

Alternative Fueling Infrastructure Grant Program

(1)

Trust fund

(A)There is established in the Treasury of the United States a trust fund, to be known as the Alternative Fueling Infrastructure Trust Fund (referred to in this subsection as the Trust Fund), consisting of such amounts as are deposited into the Trust Fund under subparagraph (B) and any interest earned on investment of amounts in the Trust Fund. (B)The Secretary of Transportation shall remit 90 percent of the amount collected in civil penalties under this section to the Trust Fund. (2)

Establishment of Grant Program

The Secretary of Energy shall obligate such sums as are available in the Trust Fund to establish a grant program to increase the number of locations at which consumers may purchase alternative fuels. (3)

Grant recipients

(A)

Allocation to corporate and nonprofit entities

The Secretary of Energy may allocate from the Trust Fund such sums as the Secretary considers appropriate to corporations (including nonprofit corporations) with demonstrated experience in the administration of grant funding for the purpose of making alternative fueling infrastructure grants to owners and operators of fueling stations. The Secretary of Energy may allocate funds only to a corporation that agrees to provide $1 of non-Federal contributions for every $3 of Federal funding received under this subparagraph. In no case may administrative expenses exceed 5 percent of any total allocation that may be provided. Allocations under this paragraph may be made only for specific types of alternative fuels that can be used in at least 50,000 automobiles produced in the United States in the prior automobile production year. (B)

Considerations

In making allocations to corporate and nonprofit entities for alternative fueling infrastructure awards under subparagraph (A), the Secretary shall— (i)consider the number of automobiles produced for sale in the preceding production year capable of using each specific type of alternative fuel; and (ii)identify 1 primary entity per alternative fuel capable of implementing a national deployment program and providing technical and marketing assistance. (C)

Direct Grants to fueling station owners and operators

The Secretary of Energy may award grants directly to owners and operators of fueling stations for the purpose of installing alternative fuel infrastructure for specific types of alternative fuels that can be used in not fewer than 50,000 automobiles produced in the United States in the prior automobile production year. (D)

Grant recipients

A recipient of an allocation under subparagraph (A) and the Secretary of Energy under subparagraph (C) shall award grants to owners and operators of fueling stations in an amount not greater than $150,000 per site or $500,000 per entity. A recipient of a grant under this paragraph shall agree to provide $1 of non-Federal contributions for every $3 of grant funds received under this paragraph. In no case may administrative expenses exceed 3 percent of any grant that may be provided. Recipients of grants shall be selected on a formal, open, and competitive basis, based on— (i)the public demand for each alternative fuel in a particular county based on state registration records showing the number of automobiles that can be operated with alternative fuel; (ii)the opportunity to create or expand corridors of alternative fuel stations along interstate or State highways; and (iii)the opportunity to increase economic activity in economically-depressed communities. (E)

Technical and marketing assistance

A recipient of an allocation under subparagraph (A) shall provide technical and marketing assistance to recipients of grant awards, including point of sale and labeling materials. (4)

Use of funds

(A)Grant funds received under this subsection may be used to— (i)construct new facilities to dispense alternative fuels; (ii)purchase equipment to upgrade, expand, or otherwise improve existing alternative fuel facilities; (iii)purchase equipment or pay for specific turnkey fueling services by alternative fuel providers; or (iv)assist with marketing, point of sale materials, including labeling materials and any other efforts to promote the availability of alternative fuels. (5)

Operation of alternative fuel stations

Facilities constructed or upgraded with grant funds received under this subsection shall— (A)provide alternative fuel available to the public for a period of not less than 4 years; (B)establish a marketing plan to advance the sale and use of alternative fuels; (C)prominently display the price of alternative fuel on the marquee and in the station; (D)provide point of sale materials on alternative fuel; (E)clearly label the dispenser with consistent materials; (F)price the alternative fuel at the same margin that is received for unleaded gasoline; and (G)support and use all available tax incentives to reduce the cost of the alternative fuel to the lowest possible retail price. (6)

Notification requirements

(A)Not later than the date on which each alternative fuel station begins to offer alternative fuel to the public, the grant recipient that used grant funds to construct such station shall notify the Secretary of Energy of such opening. The Secretary of Energy shall add each new alternative fuel station to the alternative fuel station locator on its Website when it receives notification under this subparagraph. (B)Not later than 6 months after the receipt of a grant award under this subsection, and every 6 months thereafter, each grant recipient shall submit a report to the Secretary of Energy that describes— (i)the status of each alternative fuel station constructed with grant funds received under this subsection; (ii)the amount of alternative fuel dispensed at each station during the preceding 6-month period; and (iii)the average price per gallon of the alternative fuel sold at each station during the preceding 6-month period. (7)

Alternative fuel defined

For the purposes of this subsection, the term alternative fuel means— (A)any fuel of which at least 85 percent (or such percentage, but not less than 70 percent, as determined by the Secretary, by rule, to provide for requirements relating to cold start, safety, or automobile functions) of the volume consists of ethanol, liquefied petroleum gas, or hydrogen; or (B)any mixture of biodiesel and diesel fuel determined without regard to any use of kerosene that contains at least 20 percent biodiesel. .