[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 184 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 184
To amend the Internal Revenue Code of 1986 to provide a business credit
relating to the use of clean-fuel and fuel efficient vehicles by
businesses within areas designated as nonattainment areas under the
Clean Air Act.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 6, 2009
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 a business credit
relating to the use of clean-fuel and fuel efficient vehicles by
businesses within areas designated as nonattainment areas under the
Clean Air Act.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Clean Vehicles for Cleaner Air Act
of 2009''.
SEC. 2. CLEAN-FUEL CREDIT WITH RESPECT TO BUSINESSES LOCATED IN
NONATTAINMENT AREAS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business-related
credits) is amended by adding at the end the following new section:
``SEC. 45R. CLEAN-FUEL CREDIT WITH RESPECT TO BUSINESSES LOCATED IN
NONATTAINMENT AREAS.
``(a) In General.--For purposes of section 38, in the case of an
eligible business the clean-fuel credit determined under this section
for the taxable year is the sum of--
``(1) the clean-fuel property credit, plus
``(2) the clean-burning fuel use credit.
``(b) Clean-Fuel Property Credit.--
``(1) In general.--The clean-fuel property credit is the
sum of--
``(A) qualified vehicle property costs, plus
``(B) qualified refueling property costs.
``(2) Qualified vehicle property costs.--
``(A) In general.--For purposes of paragraph (1),
the term `qualified vehicle property costs' means the
amount paid or incurred by the eligible business for
qualified clean-fuel vehicle property which is placed
in service during the taxable year by the eligible
business and substantially all of the use of which is
in a nonattainment area.
``(B) Limitation.--The amount which may be taken
into account under subparagraph (A) with respect to any
motor vehicle shall not exceed--
``(i) $4,000 in the case of a motor vehicle
not described in clause (ii) or (iii),
``(ii) $10,000 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) $80,000 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).
``(C) Qualified clean-fuel vehicle property.--The
term `qualified clean-fuel vehicle property' shall have
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.
``(3) Qualified refueling property costs.--
``(A) In general.--For purposes of paragraph (1),
the term `qualified refueling property costs' means
amounts paid or incurred by the eligible business for
qualified clean-fuel vehicle refueling property (as
defined by section 179A(d)) which is placed in service
in a nonattainment area during the taxable year by the
eligible business.
``(B) Limitation.--
``(i) In general.--The aggregate cost which
may be taken into account under subparagraph
(A) with respect to qualified clean-fuel
vehicle refueling property placed in service by
the eligible business during the taxable year
at a location shall not exceed the lesser of--
``(I) $150,000, 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) Clean-Burning Fuel Use Credit.--
``(1) In general.--For purposes of subsection (a), the
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 business during the taxable year to propel
qualified clean-fuel vehicle property.
``(2) Clean-burning fuel.--For purposes of paragraph (1),
the term `clean-burning fuel' has the meaning given to such
term by section 179A, except that such term includes compressed
natural gas and biodiesel (as defined by section 40A(d)(1)).
``(3) Gasoline gallon equivalent.--For purposes of
paragraph (1), 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.
``(d) Other Definitions.--For purposes of this section--
``(1) Eligible business.--The term `eligible business'
means--
``(A) a qualified business entity or a qualified
proprietorship (as such terms are defined by section
1397C, determined by substituting `nonattainment area'
for `empowerment zone' and `enterprise zone' each place
it appears), and
``(B) a trade or business located outside of a
nonattainment area, but only with respect to qualified
clean-fuel vehicle property used substantially within a
nonattainment area.
``(2) Nonattainment area.--The term `nonattainment area'
shall have the meaning given to such term by section 171 of the
Clean Air Act (42 U.S.C. 7501).
``(e) Denial of Double Benefit.--Except as provided in section
30B(i), 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.
``(f) Recapture.--The Secretary shall, by regulations, provide for
recapturing the benefit under any credit allowable under subsection (a)
with respect to any property substantially all of the use of which is
not in a nonattainment area.''.
(b) 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 (34), by striking
the period at the end of paragraph (35) and inserting ``, plus'', and
by adding at the end thereof the following new paragraph:
``(36) the clean-fuel credit determined under section
45R.''.
(c) 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:
``(g) 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 45R.''.
(d) Credit Allowed Against Regular and Minimum Tax.--Subparagraph
(B) of section 38(c)(4) of such Code (relating to specified credits) is
amended by striking ``and'' at the end of clause (vii), by striking the
period at the end of clause (viii) and inserting ``, and'', and by
inserting after clause (viii) the following:
``(ix) the credit determined under section
45R.''.
(e) Deduction for Certain Unused Business Credits.--Subsection (c)
of section 196 of such Code is amended by striking ``and'' at the end
of paragraph (12), by striking the period at the end of paragraph (13)
and inserting ``, and'', and by adding after paragraph (13) the
following new paragraph:
``(14) the clean fuels credit determined under section
45R.''.
(f) Conforming Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 45Q the following new
item:
``Sec. 45R. Clean-fuel credit with respect to businesses located in
nonattainment areas.''.
(g) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2008.
SEC. 3. CREDIT FOR HYBRID VEHICLES PLACED IN SERVICE IN NONATTAINMENT
AREAS.
(a) In General.--Section 30B of the Internal Revenue Code of 1986
(relating to alternative motor vehicle credit) is amended by
redesignating subsections (i) and (j) as subsections (j) and (k),
respectively, and by inserting after subsection (h) the following new
subsection:
``(i) Certain Vehicles Placed in Service in Nonattainment Areas.--
``(1) In general.--In the case of a new qualified hybrid
motor vehicle (as defined in subsection (d)) placed in service
by an eligible business and substantially all of the use of
which is in a nonattainment area, in lieu of the credit allowed
under subsection (a)(3) there shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an
amount equal to 200 percent of the amount otherwise determined
under this section (without regard to this subsection and
subsection (d)(2)(A)(ii)) with respect to such vehicle.
``(2) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit under any credit allowable
under subsection (a) by reason of paragraph (1) of this
subsection with respect to any property substantially all of
the use of which is not in a nonattainment area.
``(3) Phaseout not to apply.--For purposes of this
subsection, subsection (f) shall not apply.
``(4) Definitions.--For purposes of this subsection, the
terms `eligible business' and `nonattainment area' have the
meanings given such terms by section 45R(d).''.
(b) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2008.
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