Tax credit for hydrogen fuel

(a)

In general

Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

30D.

Hydrogen credit

(a)

Credit allowed

There shall be allowed as a credit against the tax imposed by this chapter for the taxable year the sum of the qualified hydrogen expenditure amounts for each qualified hydrogen device of the taxpayer. (b)

Qualified hydrogen expenditure amount

For purposes of this section, the term qualified hydrogen expenditure amount means, with respect to each qualified hydrogen energy conversion device of the taxpayer, the lesser of— (1)30 percent of the amount paid or incurred by the taxpayer during the taxable year for hydrogen which is consumed by such device, and (2)$1,500.

In the case of any device which is not owned by the taxpayer at all times during the taxable year, the $1,500 amount in paragraph (2) shall be reduced by an amount which bears the same ratio to $1,500 as the portion of the year which such device is not owned by the taxpayer bears to the entire year.

(c)

Qualified hydrogen energy conversion devices

For purposes of this section— (1)

In general

The term qualified hydrogen energy conversion device means, with respect to any taxpayer, any hydrogen energy conversion device which is placed in service after December 31, 2004, and which is wholly owned by the taxpayer during the taxable year. If an owner of a device (determined without regard to this paragraph) provides to the primary user of such device a written statement that such user shall be treated as the owner of such device for purposes of this section, then such user (and not such owner) shall be so treated. (2)

Hydrogen energy conversion device

The term hydrogen energy conversion device means— (A)any electrochemical device which converts hydrogen into electricity, and (B)any combustion engine which burns hydrogen as a fuel. (d)

Application with other credits

(1)

Business credit treated as part of general business credit

So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to amounts which (but for subsection (e) would be allowed as a deduction under section 162 shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). (2)

Personal credit

The credit allowed under subsection (a) (after the application of paragraph (1)) for any taxable year shall not exceed the excess (if any) of— (A)the regular tax liability (as defined in section 26(b)) reduced by the sum of the credits allowable under subpart A and sections 27, 30, 30B, and 30C, over (B)the tentative minimum tax for the taxable year. (e)

Denial of double benefit

For purposes of determining any deduction or any other credit under this subtitle, the amounts paid or incurred by the taxpayer for hydrogen which is taken into account under this section shall be reduced by the amount of the credit allowed under this section. (f)

Termination

This section shall not apply to amounts paid or incurred after December 31, 2015.

(b)

Conforming amendments

(1)Section 38(b) of such Code is amended by striking plus at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting plus, and by adding at the end the following new paragraph:

(32)the portion of the hydrogen credit to which section 30D(d)(1) applies.

(2)Section 55(c)(3) of such Code is amended by inserting 30D(d)(2), 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 adding at the end the following new item:

Sec. 30D. Hydrogen credit.

(c)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after December 31, 2007, in taxable years ending after such date.

Extension of existing tax credits for fuel cell and microturbine property

(a)

Residential energy efficient property

Subsection (g) of section 25D of the Internal Revenue Code of 1986 is amended by inserting (December 31, 2013, in the case of qualified fuel cell property) before the period at the end. (b)

Energy credit

(1)

Fuel cell property

Subparagraph (E) of section 48(c)(1) of such Code is amended by striking December 31, 2008 and inserting December 31, 2013. (2)

Microturbine property

Subparagraph (E) of section 48(c)(2) of such Code is amended by striking December 31, 2008 and inserting December 31, 2013.

Secondary fuel cell power sources for new public buildings

Section 3305 of title 40, United States Code, is amended by adding at the end the following:

(f)

Secondary fuel cell power sources for new public buildings

(1)

In general

A public building may not be constructed after December 31, 2008, that will be in excess of 50,000 square feet, unless the building has a fuel cell (as defined in section 781 of the Energy Policy Act of 2005 (42 U.S.C. 16121; 119 Stat. 835)) as an independent, backup source of electric power. (2)

Size and use of fuel cell

A fuel cell installed under this subsection in a building must have the capacity, and shall be used, to provide electric power for critical and essential functions and operations being conducted in the building during peak hours of electricity usage and during power outages. (3)

Consideration for base load power supply

In carrying out this subsection, the Administrator shall consider the use of a fuel cell to be installed or installed in a building under this subsection for use in meeting the base load electric power needs of the building. (4)

Limitation

This subsection shall not apply to a public building that is under construction on December 31, 2008.

Uniformity of hydrogen storage and transportation regulations

(a)

Purposes

The purposes of this section are— (1)to prepare Federal, State, and local regulatory agencies for the smooth commercialization of hydrogen and fuel cell devices and fueling stations and smooth transition from a hydrocarbon economy to hydrogen economy; and (2)to ensure comprehensive coordination among these agencies to develop and utilize the necessary enabling regulations that ensure public safety, commercial development of hydrogen and fuel cell devices and fueling stations, and a smooth transition from a hydrocarbon economy to hydrogen economy. (b)

Study and report

(1)

In general

Not later than January 1, 2008, the Secretary of Transportation, in cooperation with the Secretaries of Energy, Commerce, Defense, and the heads of other appropriate Federal agencies, shall establish an interagency task force and comprehensive study team to— (A)study and identify the regulatory actions that will be needed to ensure a safe, smooth transition— (i)to commercialization of hydrogen and fuel cell devices and fueling stations; and (ii)from a hydrocarbon economy to hydrogen economy; and (B)design a uniform regulatory approach to such transition that ensures public safety. (2)

Participation of state agencies

The Secretary of Transportation may also include in the task force and study team to be established under paragraph (1) the heads of those State agencies that the Secretary determines are most likely to be instrumental in leading the effort toward commercialization of hydrogen and fuel cell devices and fueling stations and will have responsibility for implementing the regulations issued as a result of the regulating actions referred to in paragraph (1). (3)

Report

Not later than January 1, 2010— (A)the task force and study team established under paragraph (1) shall complete the identification of the regulatory actions described in paragraph (1) and the study, and design of the uniform regulatory approach, under paragraph (1); and (B)the Secretary shall submit to Congress a report on the results of the identification process, study, and design process, together with proposed legislation that the Secretary recommends to facilitate such regulatory actions or as being necessary for commercial development and hydrogen and fuel cell devices and fueling stations and a smooth transition from a hydrocarbon economy to hydrogen economy. (c)

Training and Familiarization program

(1)

Establishment

The Secretary of Transportation, in cooperation with the task force and study team established under subsection (b), shall establish a cooperative, cost-shared training and familiarization program to facilitate commercial development and hydrogen and fuel cell devices and fueling stations and a smooth transition from a hydrocarbon economy to hydrogen economy. (2)

Cost-sharing agreements

Under the program, the Secretary shall enter into cost-sharing agreements with State and local governments and other persons that require the Secretary to provide for employees of, and individuals providing contracted services for, such governments and persons training and education regarding the uniform regulatory approach designed under subsection (b). (3)

Utilization of certain safety codes and standards

In providing training and education under this subsection, the Secretary shall utilize the safety codes and standards being developed under section 809(b) of the Energy Policy Act of 2005 (42 U.S.C. 16158; 119 Stat. 851). (d)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $4,000,000 for each of the fiscal years 2008 through 2012.