109 HR 5973 IH: Hydrogen Transportation Wins Over U.S. House of Representatives 2006-07-28 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. 5973 IN THE HOUSE OF REPRESENTATIVES July 28, 2006 Mr. Dent (for himself, Mr. Wynn, Mr. Inglis of South Carolina, and Mr. Larson of Connecticut) 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 for the installation of hydrogen fueling stations, and for other purposes.

1.

Short title

This Act may be cited as the Hydrogen Transportation Wins Over Growing Reliance on Oil (H2 GROW) Act.

2.

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:

30D.

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 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, (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, and (4)such property is located at a facility of the taxpayer from which the taxpayer sells such fuel for dispensing into fuel tanks of motor vehicles of the general public. (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, 30B, and 30C, 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 (36), by striking the period at the end of paragraph (37) and inserting , and, and by adding at the end the following new paragraph: (38)to the extent provided in section 30D(e). . (2)Section 55(c)(2) of such Code is amended by inserting 30D(d), after 30C(d)(2),. (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 30C the following new item: Sec. 30D. 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.

3.

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:

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 vehicle. (b)

Definition of hydrogen vehicle

For purposes of this section, the term hydrogen vehicle means a motor vehicle (as defined in section 30(c)(2)) which is propelled— (1)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, or (2)by an internal combustion engine that is fueled by hydrogen. (c)

Termination

This section shall not apply to income attributable to sales after December 31, 2014.

. (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, 2004, in taxable years ending after such date.