1.
(a)This Act may be cited
as the New Alternative Transportation
to Give Americans Solutions
.
(b)Except as otherwise
expressly provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
(c)The table of contents for this Act is as follows:
Sec. 1. Short title, etc.
TITLE I—Promote the Purchase and Use of NGVs With an Emphasis on
Heavy Duty Vehicles and Fleet Vehicles
Sec. 101. Modification of alternative fuel credit.
Sec. 102. Extension and modification of new qualified
alternative fuel motor vehicle credit.
Sec. 103. Allowance of vehicle and infrastructure credits
against regular and minimum tax and transferability of credits.
Sec. 104. Natural gas vehicle bonds.
Sec. 105. Modification of credit for purchase of vehicles
fueled by compressed natural gas or liquified natural gas.
Sec. 106. Modification of definition of new qualified
alternative fuel motor vehicle.
TITLE II—Promote production of NGVs by Original Equipment
Manufacturers
Sec. 201. Incentives for manufacturing facilities producing
vehicles fueled by compressed or liquified natural gas.
TITLE III—Incentivize the Installation of Natural Gas Fuel Pumps
at Service Stations and Depots and Domestic LNG Production Facilities for Small
Energy Producers
Sec. 301. Extension and modification of alternative fuel
vehicle refueling property credit.
Sec. 302. Increase in credit for certain alternative fuel
vehicle refueling properties.
TITLE IV—Natural Gas Vehicles
Sec. 401. Natural gas vehicles in Federal fleet.
Sec. 402. Grants for natural gas vehicles research and
development.
Sec. 403. Sense of the Senate on EPA certification of NGV
retrofit kits.
<enum>I</enum><header>Promote the
Purchase and Use of NGVs With an Emphasis on Heavy Duty Vehicles and Fleet
Vehicles</header>
<section id="HC576511DDBE94207A8A466AD03CED675"><enum>101.</enum><header>Modification of
alternative fuel credit</header>
<subsection id="H89D7768C5CC24EA1A36D3F3D596B6D1B"><enum>(a)</enum><header>Alternative fuel
credit</header><text>Paragraph (5) of section 6426(d) (relating to alternative
fuel credit) is amended by inserting <quote>, and December 31, 2019, in the
case of any sale or use involving compressed or liquefied natural gas)</quote>
after <quote>hydrogen</quote>.</text>
</subsection><subsection commented="no" id="HD008C4BAAEF641B5829CEEFFAD12CD14"><enum>(b)</enum><header>Alternative fuel
mixture credit</header><text display-inline="yes-display-inline">Paragraph (3)
of section 6426(d) is amended by inserting <quote>, and December 31, 2019, in
the case of any sale or use involving compressed or liquefied natural
gas)</quote> after <quote>hydrogen</quote>.</text>
</subsection><subsection id="HD96F5B02D0404A6AAD83D8224F63009B"><enum>(c)</enum><header>Payments
relating to alternative fuel or alternative fuel
mixtures</header><text>Paragraph (6) of section 6427(e) is amended—</text>
<paragraph id="H5A6FF511FD2B4FF09856BF597E08F237"><enum>(1)</enum><text>in subparagraph
(C)—</text>
<subparagraph id="HE7283DB3E2C34A7A819479DD37DD35E7"><enum>(A)</enum><text>by striking
<quote>subparagraph (D)</quote> in subparagraph (C) and inserting
<quote>subparagraphs (D) and (E)</quote>, and</text>
</subparagraph><subparagraph id="HE7F8E3F7FEEE4BCF8F80D81A7A9F9A78"><enum>(B)</enum><text>by striking
<quote>and</quote> at the end thereof,</text>
</subparagraph></paragraph><paragraph id="H912A2F7FA2C14DA7AD9EA47843D476F0"><enum>(2)</enum><text>by striking the
period at the end of subparagraph (D) and inserting <quote>, and</quote>,
and</text>
</paragraph><paragraph id="HED01B3AAA5874D6C8D28B225BA97721A"><enum>(3)</enum><text>by inserting at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H06D4E7D6D3294405A71C7A7E83C7B2DD" style="OLC">
<subparagraph id="H67F249B9430343C99FC36A3634F76F24"><enum>(E)</enum><text display-inline="yes-display-inline">any alternative fuel or alternative fuel
mixture (as so defined) involving compressed or liquefied natural gas sold or
used after December 31,
2019.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H24B033F46C2744B0BE08EB97E14B896"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to fuel sold
or used after the date of the enactment of this Act.</text>
</subsection></section><section id="H1BE04755351D4BDE9D78F8CF4F641BB1"><enum>102.</enum><header>Extension and
modification of new qualified alternative fuel motor vehicle credit</header>
<subsection id="H2B68582713DE440EA5A8EF89AFB007"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (4) of
section 30B(k) (relating to termination) is amended by inserting
<quote>(December 31, 2019, in the case of a vehicle powered by compressed or
liquefied natural gas)</quote> before the period at the end.</text>
</subsection><subsection id="HE8A7E404CE0040D79EAFC99BE343F3FA"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><section id="HDA2B96F2304743D8B2DEC474BC1836F0"><enum>103.</enum><header>Allowance of
vehicle and infrastructure credits against regular and minimum tax and
transferability of credits</header>
<subsection id="H7040382CDB1A40EF8E25522D79AE0983"><enum>(a)</enum><header>Business
credits</header><text>Subparagraph (B) of section 38(c)(4) is amended by
striking <quote>and</quote> at the end of clause (vii), by striking the period
at the end of clause (viii) and inserting <quote>, and</quote>, and by
inserting after clause (viii) the following new clauses:</text>
<quoted-block id="H5C4571BEE4B74EF89424B3CAF26325D2" style="OLC">
<clause id="H30F067A4899C45A599B1D99FB76D2C02"><enum>(ix)</enum><text display-inline="yes-display-inline">the portion of the credit determined under
section 30B which is attributable to the application of subsection (e)(3)
thereof with respect to new qualified alternative fuel motor vehicles which are
capable of being powered by compressed or liquefied natural gas, and</text>
</clause><clause id="H9B17A0313E404B84803640005E416FE9"><enum>(x)</enum><text display-inline="yes-display-inline">the portion of the credit determined under
section 30C which is attributable to the application of subsection (b) thereof
with respect to refueling property which is used to store and or dispense
compressed or liquefied natural
gas.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE57B69C7C88747F684B62D80A2AA35E0"><enum>(b)</enum><header>Personal
credits</header>
<paragraph id="H89603227CB2D420EA82E2D472ED01FB2"><enum>(1)</enum><header>New qualified
alternative fuel motor vehicles</header><text>Subsection (g) of section 30B is
amended by adding at the end the following new paragraph:</text>
<quoted-block id="H5077766EFCAB410EA8E8855E4EFEBD60" style="OLC">
<paragraph id="H5F39F8F2869145F0BC5969696BD4E882"><enum>(3)</enum><header>Special rule
relating to certain new qualified alternative fuel motor vehicles</header><text display-inline="yes-display-inline">In the case of the portion of the credit
determined under subsection (a) which is attributable to the application of
subsection (e)(3) with respect to new qualified alternative fuel motor vehicles
which are capable of being powered by compressed or liquefied natural
gas—</text>
<subparagraph id="HBE71F5C0AD644D1FBE71E41354E3F175"><enum>(A)</enum><text display-inline="yes-display-inline">paragraph (2) shall (after the application
of paragraph (1)) be applied separately with respect to such portion,
and</text>
</subparagraph><subparagraph id="H71ECAF612E5E4489ACE72ECCA9098D4"><enum>(B)</enum><text>in lieu of the
limitation determined under paragraph (2), such limitation shall not exceed the
excess (if any) of—</text>
<clause id="H25FA0DAD0FCB49FD88CB8F65BE66A760"><enum>(i)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tentative minimum
tax for the taxable year, reduced by</text>
</clause><clause id="H8BF2BC9724B0493BB47326BA580559F2"><enum>(ii)</enum><text>the sum of the
credits allowable under subpart A and sections 27 and
30.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6E8FEE3D998B4C46B050B8E074C8857"><enum>(2)</enum><header>Alternative fuel
vehicle refueling properties</header><text>Subsection (d) of section 30C is
amended by adding at the end the following new paragraph:</text>
<quoted-block id="H8133FBA78BAE4568818800A244DEB2AB" style="OLC">
<paragraph id="HB92106B133DF465299E64145489E7547"><enum>(3)</enum><header>Special rule
relating to certain alternative fuel vehicle refueling properties</header><text display-inline="yes-display-inline">In the case of the portion of the credit
determined under subsection (a) with respect to refueling property which is
used to store and or dispense compressed or liquefied natural gas and which is
attributable to the application of subsection (b)—</text>
<subparagraph id="H95312CBDD7F84FA2AA30428BD6CD0746"><enum>(A)</enum><text>paragraph (2)
shall (after the application of paragraph (1)) be applied separately with
respect to such portion, and</text>
</subparagraph><subparagraph id="H3A420505F9664F948B9D44657249C206"><enum>(B)</enum><text>in lieu of the
limitation determined under paragraph (2), such limitation shall not exceed the
excess (if any) of—</text>
<clause id="HE8F63AD78F9D41799367EFD3A779A42"><enum>(i)</enum><text>the
sum of the regular tax liability (as defined in section 26(b)) plus the
tentative minimum tax for the taxable year, reduced by</text>
</clause><clause id="H0CF3493ED1784133B50747A7728F5877"><enum>(ii)</enum><text>the sum of the
credits allowable under subpart A and sections 27, 30, and the portion of the
credit determined under section 30B which is attributable to the application of
subsection (e)(3)
thereof.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HBD83A6659B194820A6C9DE6648C54834"><enum>(c)</enum><header>Credits may be
transferred</header>
<paragraph commented="no" id="H92DCF68270A24821BE4B1CD26ED8EB8B"><enum>(1)</enum><header>Vehicle
credits</header><text display-inline="yes-display-inline">Subsection (h) of
section 30B is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id296CFE41C40446A195D10582ED537F0E" style="OLC">
<paragraph commented="no" id="ID55453997f2f94806953de1001234255c"><enum>(11)</enum><header>Transferability
of credit</header>
<subparagraph id="IDb0768c6581f74144aa0f1c552bf87d36"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), a taxpayer who
places in service any new qualified alternative fuel motor vehicle which is
capable of being powered by compressed or liquefied natural gas may transfer
the credit allowed under this section by reason of subsection (e) with respect
to such vehicle through an assignment to the seller or lessor of such vehicle.
Such transfer may be revoked only with the consent of the Secretary.</text>
</subparagraph><subparagraph id="id5D48209C589244F0AA7DA19827EC47BE"><enum>(B)</enum><header>Denial of
double benefit</header><text>No assignment of a credit allowed under this
section by reason of subsection (e) with respect to any new qualified
alternative fuel motor vehicle which is capable of being powered by compressed
or liquefied natural gas may be made under subparagraph (A) to a taxpayer who
has claimed a credit under section 54G with respect to the financing of such
vehicle.</text>
</subparagraph><subparagraph id="IDa9bd6ea5e16743d693e5586d3ac82545"><enum>(C)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as necessary to ensure that any
credit transferred under subparagraph (A) is claimed once and not reassigned by
such other
person.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H7CE288BC59D040D5A5D1B71000A400A0"><enum>(2)</enum><header>Infrastructure
credit</header><text>Subsection (e) of section 30C is amended by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id62670F490A2D4B40AD3742F056553842" style="OLC">
<paragraph commented="no" id="idF6BF4416959E4560AD07A337A030E791"><enum>(7)</enum><header>Transferability
of credit</header>
<subparagraph id="idCFA4D2FD70BA447FAFE7E07406ADC0C3"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), a taxpayer who
places in service any qualified alternative fuel vehicle refueling property
relating to compressed or liquefied natural gas may transfer the credit allowed
under this section with respect to such property through an assignment to the
seller or lessor of such property. Such transfer may be revoked only with the
consent of the Secretary.</text>
</subparagraph><subparagraph id="idD3954FC7457D47ABAA8C531E0B275C96"><enum>(B)</enum><header>Denial of
double benefit</header><text>No assignment of a credit allowed under this
section by reason of subsection (e) with respect to any qualified alternative
fuel vehicle refueling property relating to compressed or liquefied natural gas
may be made under subparagraph (A) to a taxpayer who has claimed a credit under
section 54G with respect to the financing of such property.</text>
</subparagraph><subparagraph id="id8E67CB9D60454EFC98DC97F670129DB4"><enum>(C)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as necessary to ensure that any
credit transferred under subparagraph (A) is claimed once and not reassigned by
such other
person.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H52E81A680D5C4326B8FC88DA88EE1A"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to property placed in service after the date of the enactment of this
Act.</text>
</subsection></section><section id="H6B25A6F4A05D496FB27613A35C8F9EDD"><enum>104.</enum><header>Natural gas
vehicle bonds</header>
<subsection id="idE923CA26090649DE85919D7840598278"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart I of part IV
of subchapter A of chapter 1 (relating to qualified tax credit bonds) is
amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="idBF9F5FB722954E88BB07677F122C52BD" style="OLC">
<section id="ID69f9d6dc09264b2e99fbc3f53090ad73"><enum>54G.</enum><header>Natural gas
vehicle bonds</header>
<subsection id="ID645d81a51d2d4387822d308b5e37fe36"><enum>(a)</enum><header>Natural gas
vehicle bond</header><text>For purposes of this subpart, the term <term>natural
gas vehicle bond</term> means any bond issued as part of an issue if—</text>
<paragraph id="idD526EAD251B14BFA8E347E578F6311AB"><enum>(1)</enum><text>100 percent of
the available project proceeds of such issue are to be used for capital
expenditures incurred by a governmental body for 1 or more qualified natural
gas vehicle projects placed in service by such governmental body primarily for
governmental or public use,</text>
</paragraph><paragraph id="id689E4B94BA5A4EA3B66EEBFD359D9CCF"><enum>(2)</enum><text>the bond is
issued by a governmental body,</text>
</paragraph><paragraph id="id34C7E7313B574291A00B8F14ACDB883D"><enum>(3)</enum><text>the issuer
designates such bond for purposes of this section, and</text>
</paragraph><paragraph id="idBB872D692BD44B33AF551EFEDE75DA0A"><enum>(4)</enum><text>in lieu of the
requirements of section 54A(d)(2), the issue meets the requirements of
subsection (c).</text>
</paragraph></subsection><subsection id="IDf89bdd064a8c4a1a8d165dbb512aad58"><enum>(b)</enum><header>Limitation on
amount of bonds designated</header>
<paragraph id="idB9A48C019AAF40A592B7854D1629A07A"><enum>(1)</enum><header>In
general</header><text>The maximum aggregate face amount of bonds which may be
designated under subsection (a) by any issuer shall not exceed the limitation
amount allocated under this subsection to such issuer.</text>
</paragraph><paragraph id="ID584e7016c80e46ccac214bb86d9df6ec"><enum>(2)</enum><header>National
limitation on amount of bonds designated</header><text>There is a national
natural gas vehicle bond limitation of $3,000,000,000.</text>
</paragraph><paragraph id="ID2d2d0639f4e74ca995ee4e308a2cb8f1"><enum>(3)</enum><header>Allocation by
Secretary</header><text>The Secretary shall allocate the amount described in
paragraph (2) among qualified natural gas vehicle projects in such manner as
the Secretary determines appropriate.</text>
</paragraph></subsection><subsection id="ID9a90ba234b304043ab3a5365a37c0c23"><enum>(c)</enum><header>Special rules
relating to expenditures</header>
<paragraph id="ID675909b3c32b4749a244a9ffd26c648a"><enum>(1)</enum><header>In
general</header><text>An issue shall be treated as meeting the requirements of
this subsection if, as of the date of issuance, the issuer reasonably
expects—</text>
<subparagraph id="ID723f641d246844c8b5a59803cc7d4b5d"><enum>(A)</enum><text>100 percent or
more of the available project proceeds of such issue are to be spent for 1 or
more qualified natural gas vehicle projects within the 5-year period beginning
on the date of issuance of the natural gas vehicle bond,</text>
</subparagraph><subparagraph id="idF7A11260DBCC4E4AA45E800B0511DA90"><enum>(B)</enum><text>a binding
commitment with a third party to spend at least 10 percent of such available
project proceeds will be incurred within the 6-month period beginning on the
date of issuance of the natural gas vehicle bond, and</text>
</subparagraph><subparagraph id="id2E1DE313F17D4D26A985D075D3F0F45C"><enum>(C)</enum><text>such projects
will be completed with due diligence and such available project proceeds will
be spent with due diligence.</text>
</subparagraph></paragraph><paragraph id="ID24077af2179c4abe9939cd05f85841d8"><enum>(2)</enum><header>Extension of
period</header><text>Upon submission of a request prior to the expiration of
the period described in paragraph (1)(A), the Secretary may extend such period
if the issuer establishes that the failure to satisfy the 5-year requirement is
due to reasonable cause and the related projects will continue to proceed with
due diligence.</text>
</paragraph><paragraph id="ID92f7cc8a51c74bd8a2168c41c8b31b13"><enum>(3)</enum><header>Failure to
spend required amount of bond proceeds within 5 years</header><text>To the
extent that less than 100 percent of the available project proceeds of such
issue are expended by the close of the 5-year period beginning on the date of
issuance (or if an extension has been obtained under paragraph (2), by the
close of the extended period), the issuer shall redeem all of the nonqualified
bonds within 90 days after the end of such period. For purposes of this
paragraph, the amount of the nonqualified bonds required to be redeemed shall
be determined in the same manner as under section 142.</text>
</paragraph></subsection><subsection id="ID88e602ee13df4b26b5df3ce70e80ac81"><enum>(d)</enum><header>Governmental
body</header><text>For purposes of this section, the term <term>governmental
body</term> means any State or Indian tribal government, or any political
subdivision thereof.</text>
</subsection><subsection id="ID70ab0565fede40feb7dd0563b864d3ce"><enum>(e)</enum><header>Qualified
natural gas vehicle project</header><text>For purposes of this subpart, the
term <term>qualified natural gas vehicle project</term> means—</text>
<paragraph id="idAACE15E00DF244F59ED5348431B3019D"><enum>(1)</enum><text display-inline="yes-display-inline">1 or more new qualified alternative fuel
motor vehicles which are capable of being powered by compressed or liquefied
natural gas (within the meaning of section 30B(e)(4)), or</text>
</paragraph><paragraph id="id6AE87B1CB19C46E186360814060275C7"><enum>(2)</enum><text display-inline="yes-display-inline">1 or more qualified alternative fuel
vehicle refueling properties which are used to store and or dispense compressed
or liquefied natural gas (within the meaning of section 30C(c)).</text>
</paragraph></subsection><subsection id="IDf2b171f688b64e4a91ad590fcc14b878"><enum>(f)</enum><header>Termination</header><text>This
section shall not apply with respect to any bond issued after December 31,
2019.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID9ef415c8e95a448b9297715d27cba612"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="ID8781c688b63340b89ba26a53fd7d8379"><enum>(1)</enum><text>Paragraph (1) of
section 54A(d) is amended by striking <quote>or</quote> at the end of
subparagraph (D), by inserting <quote>or</quote> at the end of subparagraph
(E), and by inserting after subparagraph (E) the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id8C32B11CD1E4430F89732E26A66CD06B" style="OLC">
<subparagraph id="IDf2b1394773fd4443b24b2dd72a811926"><enum>(F)</enum><text>a natural gas
vehicle
bond,</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID0816fec5c18c4f5aad7af3f59f717713"><enum>(2)</enum><text>Subparagraph (C)
of section 54A(d)(2) is amended by striking <quote>and</quote> at the end of
clause (iv), by striking the period at the end of clause (v) and inserting
<quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="id5501F8658A334C2EA37322FFD83F3C46" style="OLC">
<clause id="IDe17f63e351c642cfb7c70009c00a3f65"><enum>(vi)</enum><text>in the case of a
natural gas vehicle bond, a purpose specified in section
54G(a)(1).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id29F1F2349D6D49AAA693DC93CE1B70EE"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subpart I of part IV of
subchapter A of chapter 1 is amended by adding at the end the following new
item:</text>
<quoted-block id="idf7d6bef2-336f-4013-9dee-4a1b75e70b72" style="OLC">
<toc>
<toc-entry idref="ID69f9d6dc09264b2e99fbc3f53090ad73" level="section">Sec. 54G. Natural gas vehicle
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID9feb4fd50f304bdaacbde7957564c70e"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" id="HF9ED42E3437C428DA340990018777639"><enum>105.</enum><header>Modification of
credit for purchase of vehicles fueled by compressed natural gas or liquified
natural gas</header>
<subsection commented="no" id="HEC99585365FB4CF7B5CF35B6C3196155"><enum>(a)</enum><header>Increase in
credit</header><text display-inline="yes-display-inline">Paragraph (2) of
section 30B(e) (relating to applicable percentage) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H7B47F8632B85421387778224F0008000" style="OLC">
<paragraph id="H36637C5176004900AB2CA1B29BCA1714"><enum>(2)</enum><header>Applicable
percentage</header><text>For purposes of paragraph (1), the applicable
percentage with respect to any new qualified alternative fuel motor vehicle
is—</text>
<subparagraph id="H28BF8FE662744B6A97864313A88008C8"><enum>(A)</enum><text display-inline="yes-display-inline">except as provided in subparagraphs (B) and
(C)—</text>
<clause display-inline="no-display-inline" id="HC67DF200A9F842C0A4DCE6B0831333E2"><enum>(i)</enum><text>50 percent,
plus</text>
</clause><clause id="HF53B0B0C1CDE477E875FBEF823B692E8"><enum>(ii)</enum><text>30 percent, if
such vehicle—</text>
<subclause id="H44C1261BFDD7487097D74CC03693937E"><enum>(I)</enum><text>has received a
certificate of conformity under the Clean Air Act and meets or exceeds the most
stringent standard available for certification under the Clean Air Act for that
make and model year vehicle (other than a zero emission standard), or</text>
</subclause><subclause id="H9613E77C1AB7447DB3D465527D9DFF67"><enum>(II)</enum><text>has received an
order certifying the vehicle as meeting the same requirements as vehicles which
may be sold or leased in California and meets or exceeds the most stringent
standard available for certification under the State laws of California
(enacted in accordance with a waiver granted under section 209(b) of the Clean
Air Act) for that make and model year vehicle (other than a zero emission
standard),</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="H08C7998F889E4E558517F074FD22BFD1"><enum>(B)</enum><text display-inline="yes-display-inline">80 percent, in the case of vehicles that
are only capable of operating on compressed natural gas or liquefied natural
gas, or mix-fuel vehicles which are capable of operating on compressed or
liquefied natural gas, and</text>
</subparagraph><subparagraph commented="no" id="HBF0297F4BB314EC3B97CFB86F3D917FB"><enum>(C)</enum><text>50 percent, in the
case of vehicles described subsection (e)(4)(A)(i)(II).</text>
</subparagraph><continuation-text continuation-text-level="paragraph">For
purposes of the preceding sentence, in the case of any new qualified
alternative fuel motor vehicle which weighs more than 14,000 pounds gross
vehicle weight rating, the most stringent standard available shall be such
standard available for certification on the date of the enactment of the Energy
Tax Incentives Act of
2005.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HF98F3991BAC24BDEBCAF272B9317FCA3"><enum>(b)</enum><header>Higher
incremental cost limits for natural gas vehicles</header><text display-inline="yes-display-inline">Subsection (e) of section 30B (relating to
new qualified alternative fuel motor vehicle credit) is amended by adding at
the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HD7FC9038E7D9472B006445A224BDE525" style="OLC">
<paragraph commented="no" id="HFA83E9FB5E9C4020A441201EF22E8F17"><enum>(6)</enum><header>Higher
incremental cost limits for natural gas vehicles</header><text display-inline="yes-display-inline">In the case of new qualified alternative
fuel motor vehicles with respect to vehicles powered by compressed or liquefied
natural gas, paragraph (3) shall be applied—</text>
<subparagraph id="H7835FBD4868141ED8610C6E7A009C5AF"><enum>(A)</enum><text>in subparagraph
(A) by substituting <quote>$12,500</quote> for <quote>$5,000</quote>,</text>
</subparagraph><subparagraph id="HEC3A6D19055048E880E51034B366200"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (B) by substituting
<quote>$20,000</quote> for <quote>$10,000</quote>,</text>
</subparagraph><subparagraph id="H0B37D9FD73464395A900B409B47E31B3"><enum>(C)</enum><text display-inline="yes-display-inline">in subparagraph (C) by substituting
<quote>$50,000</quote> for <quote>$25,000</quote>, and</text>
</subparagraph><subparagraph id="HB28D752B43FC4A7D00C9F5BD75A73DAF"><enum>(D)</enum><text display-inline="yes-display-inline">in subparagraph (D) by substituting
<quote>$80,000</quote> for
<quote>$40,000</quote>.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H2C5F607E6D194780B87B15C1D067DF25"><enum>(c)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><section id="H0AFDD8C798CF40F482FBE360796DF9C"><enum>106.</enum><header>Modification of
definition of new qualified alternative fuel motor vehicle</header>
<subsection id="H61CFE525D0A24EC49644A7D1DA5236B8"><enum>(a)</enum><header>In
general</header><text>Clause (i) of section 30B(e)(4)(A) (relating to
definition of new qualified alternative fuel motor vehicle) is amended to read
as follows:</text>
<quoted-block id="HD6E57C4EA539485E863F00336FFB1F89" style="OLC">
<clause id="H160B329FF57441B3BB751E7121AEA86E"><enum>(i)</enum><text>which—</text>
<subclause id="HCDEAF365C9494DC7A6A46D00ED7F009F"><enum>(I)</enum><text>is only capable of
operating on an alternative fuel, or</text>
</subclause><subclause id="H9F5711077F604D9385A702F797809BE4"><enum>(II)</enum><text display-inline="yes-display-inline">is capable of operating on compressed or
liquefied natural gas and gasoline or diesel fuel, but in no case shall such
vehicle have an operating range of less than 200 miles on compressed or
liquefied natural
gas.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8D84BE0F19264044B02EE12FCB5B5566"><enum>(b)</enum><header>Conversions and
repowers</header><text display-inline="yes-display-inline">Paragraph (4) of
section 30B(e) is amended by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H6064593FCC6948DF81AE25D8D09EA803" style="OLC">
<subparagraph id="HC64EA5334A3D45CA865D353F37D7A935"><enum>(C)</enum><header>Conversions and
repowers</header>
<clause id="HA8829648342F482DAB7BDDD68AA9AC02"><enum>(i)</enum><header>In
general</header><text>The term <term>new qualified alternative fuel motor
vehicle</term> includes the conversion or repower of a new or used vehicle so
that it is capable of operating on an alternative fuel as it was not previously
capable of operating on an alternative fuel.</text>
</clause><clause id="HB562868D9851422381FDE152EC63DBD3"><enum>(ii)</enum><header>Treatment as
new</header><text>A vehicle which has been converted to operate on an
alternative fuel shall be treated as new on the date of such conversion for
purposes of this section.</text>
</clause><clause id="H8EDF3211241941698BA4B394A0E8EEDC"><enum>(iii)</enum><header>Rule of
construction</header><text>In the case of a used vehicle which is converted or
repowered, nothing in this section shall be construed to require that the motor
vehicle be acquired in the year the credit is claimed under this section with
respect to such
vehicle.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6ABEFCEF80494E8B86CF22B397D3CFD0"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><enum>II</enum><header>Promote
production of NGVs by Original Equipment Manufacturers</header>
<section id="id93821A5DCBA04BB6B7E26FC4115E5F09"><enum>201.</enum><header>Incentives for
manufacturing facilities producing vehicles fueled by compressed or liquified
natural gas</header>
<subsection id="id8927D006A81F411F9140F1B9AA6A404D"><enum>(a)</enum><header>Deduction for
manufacturing facilities</header><text>Part VI of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 (relating to itemized deductions for
individuals and corporations) is amended by inserting after section 179E the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="id5ADB6E5FC421473EA6C17B9F057F442E" style="OLC">
<section id="id98128FC7158C40E7AEABF0734E8B8A5B"><enum>179F.</enum><header>Expensing for
manufacturing facilities producing vehicles fueled by compressed natural gas or
liquified natural gas</header>
<subsection id="id2DF1098B377746E28DB892E48CE89426"><enum>(a)</enum><header>Treatment as
expenses</header><text>A taxpayer may elect to treat the applicable percentage
of the cost of any qualified natural gas vehicle manufacturing facility
property as an expense which is not chargeable to a capital account. Any cost
so treated shall be allowed as a deduction for the taxable year in which the
qualified manufacturing facility property is placed in service.</text>
</subsection><subsection id="id65B9782CD9724B79A51A6ED26707A28F"><enum>(b)</enum><header>Applicable
percentage</header><text>For purposes of subsection (a), the applicable
percentage is—</text>
<paragraph id="idFFE11F00F2D142D5A0EDE3BB9DDC1374"><enum>(1)</enum><text>100 percent, in
the case of qualified natural gas vehicle manufacturing facility property which
is placed in service before January 1, 2015, and</text>
</paragraph><paragraph id="id7140944257B24F2DABFC9A716D2E169C"><enum>(2)</enum><text>50 percent, in
the case of qualified natural gas vehicle manufacturing facility property which
is placed in service after December 31, 2014, and before January 1,
2020.</text>
</paragraph></subsection><subsection id="ID68b0b01685d04dcfb2c4399b4759a6b0"><enum>(c)</enum><header>Election</header>
<paragraph id="IDcee8946d276c4f1184e3c913f04970cb"><enum>(1)</enum><header>In
general</header><text>An election under this section for any taxable year shall
be made on the taxpayer's return of the tax imposed by this chapter for the
taxable year. Such election shall be made in such manner as the Secretary may
by regulations prescribe.</text>
</paragraph><paragraph id="ID733c924abc96478fbe85b229ee90c594"><enum>(2)</enum><header>Election
irrevocable</header><text>Any election made under this section may not be
revoked except with the consent of the Secretary.</text>
</paragraph></subsection><subsection id="id5D919ACCD75E4C269DD3A35B35C4B4F2"><enum>(d)</enum><header>Qualified
natural gas vehicle manufacturing facility property</header><text>For purposes
of this section—</text>
<paragraph id="id18A06A84882B4AAB8037426AC0F79146"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified natural gas vehicle
manufacturing facility property</term> means any qualified property—</text>
<subparagraph id="id15010DDCE17C42AE8B5EF3BBEDBC04B7"><enum>(A)</enum><text>the original use
of which commences with the taxpayer,</text>
</subparagraph><subparagraph id="id5CF3E76C68EF4A6EB13EEDFC8BC195AF"><enum>(B)</enum><text>which is placed
in service by the taxpayer after the date of the enactment of this section and
before January 1, 2020, and</text>
</subparagraph><subparagraph id="id0036B2467F344EEB8E201E70EFEC723F"><enum>(C)</enum><text>no written
binding contract for the construction of which was in effect on or before the
date of the enactment of this section.</text>
</subparagraph></paragraph><paragraph id="idCE0A072E32134EBAA4787F2D8E5D335D"><enum>(2)</enum><header>Qualified
property</header>
<subparagraph id="id40F95BF412774D188DD119F98A659EDE"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified property</term> means any
property which is a facility or a portion of a facility used for the production
of—</text>
<clause id="id79C2636961C74E84BA7DB887E976BDEE"><enum>(i)</enum><text>any new qualified
alternative fuel motor vehicle which is capable of being powered by compressed
or liquefied natural gas (within the meaning of section 30B(e)(4)), or</text>
</clause><clause id="id6AAE7CD0956E4AE4AB689CD95FE66D70"><enum>(ii)</enum><text>any eligible
component.</text>
</clause></subparagraph><subparagraph id="id52EF9FF33AAC45E6BCC3430668B97369"><enum>(B)</enum><header>Eligible
component</header><text>The term <term>eligible component</term> means any
component which is designed specifically for use in such a new qualified
alternative fuel motor vehicle.</text>
</subparagraph></paragraph></subsection><subsection id="id1BFFFAB6726B4270AE7DF1FB091854C2"><enum>(e)</enum><header>Special rule
for dual use property</header>
<paragraph id="id422B249CDD1A4A0BB63B0B053E48CDAF"><enum>(1)</enum><header>In
general</header><text>In the case of any qualified natural gas vehicle
manufacturing facility property which is used to produce both property
described in clauses (i) and (ii) of subsection (d)(2)(A) and property which is
not so described, the amount of costs taken into account under subsection (a)
shall be reduced by an amount equal to—</text>
<subparagraph id="id216092DB55B84B8FBCF5963071D22674"><enum>(A)</enum><text>the total amount
of such costs (determined before the application of this subsection),
multiplied by</text>
</subparagraph><subparagraph id="id36E60ED4DED548C8880B565320542A16"><enum>(B)</enum><text>the percentage of
property expected to be produced which is not so described.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id012F2033082A499284464D232D7B1555"><enum>(2)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such
regulations as are necessary to carry out the purpose of this
subsection.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id1A93577851684727AB23F64E5F2811B1"><enum>(b)</enum><header>Refund of
credit for prior year minimum tax liability</header><text>Section 53 (relating
to credit for prior year minimum tax liability) is amended by adding at the end
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id312755A726AC42CCB86712447E353B8C" style="OLC">
<subsection id="idF588F99A65A74928A40340D4AD612CB4"><enum>(g)</enum><header>Election To
treat amounts attributable to qualified manufacturing facility</header>
<paragraph id="id7F19FBF331C544BF84D999F4C8617C2A"><enum>(1)</enum><header>In
general</header><text>In the case of an eligible taxpayer, the amount
determined under subsection (c) for the taxable year (after the application of
subsection (e)) shall be increased by an amount equal to the applicable
percentage of any qualified natural gas vehicle manufacturing facility property
which is placed in service during the taxable year.</text>
</paragraph><paragraph id="id4E0F41D267734B1E874E8A3E29C10575"><enum>(2)</enum><header>Applicable
percentage</header><text>For purposes of paragraph (1), the applicable
percentage is—</text>
<subparagraph id="id56860D6EEAB3450DACCFADB1332476C0"><enum>(A)</enum><text>35 percent, in
the case of qualified natural gas vehicle manufacturing facility property which
is placed in service before January 1, 2015, and</text>
</subparagraph><subparagraph id="id63A7015694D2419BB1FBF1A986A3D2A7"><enum>(B)</enum><text>17.5 percent, in
the case of qualified natural gas vehicle manufacturing facility property which
is placed in service after December 31, 2014, and before January 1,
2020.</text>
</subparagraph></paragraph><paragraph id="id80643336A1024C54AA2B5D8E01EA9539"><enum>(3)</enum><header>Eligible
taxpayer</header><text>For purposes of this subsection, the term <term>eligible
taxpayer</term> means any taxpayer—</text>
<subparagraph id="idBFF49C67D3D74411AF8CD9D18CAA225D"><enum>(A)</enum><text>who places in
service qualified natural gas vehicle manufacturing facility property during
the taxable year,</text>
</subparagraph><subparagraph id="id62A423CA2E4E450B8C9B725065F3E5CD"><enum>(B)</enum><text>who does not make
an election under section 179F(c), and</text>
</subparagraph><subparagraph id="id64B8961337C149478EA0EA944CB678F3"><enum>(C)</enum><text>who makes an
election under this subsection.</text>
</subparagraph></paragraph><paragraph id="idD235D1A20F044B569922662D10551614"><enum>(4)</enum><header>Other
definitions and special rules</header>
<subparagraph id="id5DD81B039D4A403A9A1FBF93CA101DD1"><enum>(A)</enum><header>Qualified
natural gas vehicle manufacturing facility property</header><text>The term
<term>qualified natural gas vehicle manufacturing facility property</term> has
the meaning given such term under section 179F(d).</text>
</subparagraph><subparagraph id="id47D641E85D614C669B6E83A6E1073EB6"><enum>(B)</enum><header>Special rule
for dual use property</header><text>In the case of any qualified natural gas
vehicle manufacturing facility property which is used to produce both qualified
property (as defined in section 179F(d)) and other property which is not
qualified property, the amount of costs taken into account under paragraph (1)
shall be reduced by an amount equal to—</text>
<clause id="idD3AF2772A4734DCC9F808DA9655494F9"><enum>(i)</enum><text>the total amount
of such costs (determined before the application of this subparagraph),
multiplied by</text>
</clause><clause id="id4F59EBCAC91647AC838B0D9D0ED46B61"><enum>(ii)</enum><text>the percentage
of property expected to be produced which is not qualified property.</text>
</clause></subparagraph><subparagraph id="id9D1D8543DB214712B27BB669B539BC00"><enum>(C)</enum><header>Election</header>
<clause id="idD51A1818D08C4A459CF4203D8C5464FA"><enum>(i)</enum><header>In
general</header><text>An election under this subsection for any taxable year
shall be made on the taxpayer's return of the tax imposed by this chapter for
the taxable year. Such election shall be made in such manner as the Secretary
may by regulations prescribe.</text>
</clause><clause id="idC29F856A1B614C4583BF0A1D3AA66BED"><enum>(ii)</enum><header>Election
irrevocable</header><text>Any election made under this subsection may not be
revoked except with the consent of the Secretary.</text>
</clause></subparagraph></paragraph><paragraph id="id0C383E6320814A7D8C8FC92FBB2115F1"><enum>(5)</enum><header>Credit
refundable</header><text>For purposes of this title (other than this section),
the credit allowed by reason of this subsection shall be treated as if it were
allowed under subpart
C.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3D55D91E5DEF4384AF63BA52B08EECF5"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section><enum>III</enum><header>Incentivize the
Installation of Natural Gas Fuel Pumps at Service Stations and Depots and
Domestic LNG Production Facilities for Small Energy Producers</header>
<section id="HC367C8F85E854525AB461949D4C7C99"><enum>301.</enum><header>Extension and
modification of alternative fuel vehicle refueling property credit</header>
<subsection id="HEFA05B95838140A19581C912F3B66011"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (g) of
section 30C is amended by striking <quote>and</quote> at the end of paragraph
(1), by redesignating paragraph (2) as paragraph (3), and by inserting after
paragraph (1) the following new paragraph:</text>
<quoted-block id="H553BCAED37A1428EA870EFF5C347BE80" style="OLC">
<paragraph id="H9C0E7933517447158D0113F5B5553C66"><enum>(2)</enum><text>in the case of
property relating to compressed or liquefied natural gas, after December 31,
2019,
and</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1860DDEBD9314FE5A0179580E003000"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall apply to
property placed in service after the date of the enactment of this Act.</text>
</subsection></section><section id="H1388D5307B91400CABA9B6B006289CBA"><enum>302.</enum><header>Increase in
credit for certain alternative fuel vehicle refueling properties</header>
<subsection id="HA41B0A19519144C09B23AD69531D40F6"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 30C is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H29BB84A663E844CA9213333202DBE325" style="OLC">
<subsection id="H13749C8F626249BE9BE88E65532F10A6"><enum>(b)</enum><header>Limitation</header><text display-inline="yes-display-inline">The credit allowed under subsection (a)
with respect to all qualified alternative fuel vehicle refueling property
placed in service by the taxpayer during the taxable year at a location shall
not exceed—</text>
<paragraph id="HA86560FFEFAE42928C4156D3D19B8B2F"><enum>(1)</enum><text display-inline="yes-display-inline">except as provided in paragraph (2),
$30,000 in the case of a property of a character subject to an allowance for
depreciation,</text>
</paragraph><paragraph id="H5B234118B27B47C4874E1C8673E9D6E"><enum>(2)</enum><text>in the case of a
compressed natural gas, or liquefied natural gas, the lesser of—</text>
<subparagraph id="H2CFCB289F40C495393118500D92195B4"><enum>(A)</enum><text>50 percent of such
cost, or</text>
</subparagraph><subparagraph id="H1B054EA5C7114A6398403463886FB9F8"><enum>(B)</enum><text>$100,000,
and</text>
</subparagraph></paragraph><paragraph id="HEF1D26258EF24E94AFDCEAAE7FEDFA96"><enum>(3)</enum><text>$2,000 in any
other
case.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE5F33259FBB94DF0A5E4EACE62CFAAA"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service in taxable years beginning after December 31, 2010.</text>
</subsection></section><enum>IV</enum><header>Natural Gas
Vehicles</header>
<section commented="no" id="H7DD2451D2AC54C80AF2D4D45C3C293A5"><enum>401.</enum><header>Natural gas
vehicles in Federal fleet</header><text display-inline="no-display-inline">When
complying with mandatory Federal fleet alternative fuel vehicle purchase
requirements, Federal agencies shall purchase dedicated alternative fuel
vehicles unless the agency can show that alternative fuel is unavailable or
purchasing such vehicles would be impractical.</text>
</section><section commented="no" id="HB64340CA7E1B4A78B28CBE73C43166A0"><enum>402.</enum><header>Grants for
natural gas vehicles research and development</header>
<subsection id="H326D3895298043A7860438D562F1534C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of
Energy may make grants to original equipment manufacturers of light duty and
heavy duty natural gas vehicles for the development of engines that reduce
emissions, improve performance and efficiency, and lower cost.</text>
</subsection><subsection id="HA57D4437D29E4B11964FB681C294F3D6"><enum>(b)</enum><header>Limitation</header><text>The
aggregate amount of grants under subsection (a) for any fiscal year shall not
exceed $30,000,000.</text>
</subsection></section><section id="id974DB3F3D28D4A4BB53F1DDB14877B2F"><enum>403.</enum><header>Sense of the
Senate on EPA certification of NGV retrofit kits</header><text display-inline="no-display-inline">It is the sense of the Senate that the
Environmental Protection Agency should streamline the process for certification
of natural gas vehicle retrofit kits to promote energy security while still
fulfilling the mission of the Clean Air Act.</text>
</section>