Alternative Fuels Incentive Act of 1991 - Amends the Internal Revenue Code to permit an income tax credit for investments in qualified clean-burning (natural gas, liquefied petroleum gas, or alcohol) motor vehicle fuel property. Permits a 20 percent credit from 1992 through 2001, phasing out the credit in five percent increments annually thereafter to reach zero percent at the end of 2004. Applies the credit to tangible property that is: (1) equipment designed either to modify a motor vehicle so that it will be propelled by a clean-burning fuel or to assist in delivering such fuel into such vehicles; or (2) a motor vehicle propelled by clean-burning fuel.
Authorizes the Secretary of the Treasury to make credit-equivalent payments to States and to local governments in connection with qualified property.
HR 1497 IH 102d CONGRESS 1st Session H. R. 1497 To amend the Internal Revenue Code of 1986 to allow an investment tax credit for vehicles fueled by clean-burning substances, for converting vehicles to be so fueled, and for other purposes. IN THE HOUSE OF REPRESENTATIVES March 20, 1991 Mr. ANDREWS of Texas 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 an investment tax credit for vehicles fueled by clean-burning substances, for converting vehicles to be so fueled, and for other purposes. 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 `Alternative Fuels Incentive Act of 1991'. SEC. 2. INVESTMENT TAX CREDIT FOR VEHICLES FUELED BY CLEAN-BURNING FUELS, FOR PROPERTY CONVERTING VEHICLES TO BE SO FUELED, AND FOR FACILITIES FOR THE RETAIL DELIVERY OF SUCH FUELS. (a) ALLOWANCE OF INVESTMENT CREDIT- Section 46 of the Internal Revenue Code of 1986 (relating to amount of credit) is amended by striking `and' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting `, and', and by adding at the end thereof the following new paragraph: `(4) the qualified clean-burning motor vehicle credit.' (b) QUALIFIED CLEAN-BURNING MOTOR VEHICLE CREDIT- Section 48 of such Code is amended by adding at the end thereof the following new subsection: `(c) QUALIFIED CLEAN-BURNING MOTOR VEHICLE CREDIT- `(1) IN GENERAL- For purposes of section 46, the qualified clean-burning motor vehicle credit for any taxable year is the air quality percentage of the basis of each qualified clean-burning motor vehicle fuel property placed in service during such taxable year. `(2) AIR QUALITY PERCENTAGE- For purposes of paragraph (1), the air quality percentage is-- `(A) 20 percent for the period beginning January 1, 1992, and ending December 31, 2001, `(B) 15 percent for the period beginning January 1, 2002, and ending December 31, 2002, `(C) 10 percent for the period beginning January 1, 2003, and ending December 31, 2003, `(D) 5 percent for the period beginning January 1, 2004, and ending December 31, 2004, and `(E) 0 for the period after December 31, 2004. `(3) QUALIFIED CLEAN-BURNING MOTOR VEHICLE FUEL PROPERTY- For purposes of paragraph (1), the term `qualified clean-burning motor vehicle fuel property' means any tangible property (not including a building and its structural components) the original use of which commences with the taxpayer-- `(A) which is equipment designed to modify a motor vehicle which is propelled by a fuel which is not a clean-burning fuel so that the vehicle may be propelled by a clean-burning fuel, `(B) which is a motor vehicle propelled only by a clean-burning fuel but only to the extent of the portion of the basis of such vehicle which is attributable to the storage or delivery to the engine of such fuel or the exhaust of gases from combustion, or `(C) which is directly related to the delivery of a clean-burning fuel into the fuel tank of a motor vehicle propelled by such fuel (including storage tanks for such fuel at the point where such fuel is so delivered). `(4) CLEAN-BURNING FUEL- For purposes of paragraph (3), the term `clean-burning fuel' means-- `(A) natural gas, `(B) liquefied petroleum gas, `(C) liquefied natural gas, `(D) electricity, and `(E) any fuel at least 85 percent of which is 1 or more of the following: methanol, ethanol, any other alcohol, or ether.' (d) BASIS ADJUSTMENT NOT TO APPLY- Subsection (c) of section 50 of such Code (relating to basis adjustment to investment credit property) is amended by adding at the end thereof the following new paragraph: `(6) BASIS ADJUSTMENT NOT TO APPLY TO QUALIFIED CLEAN-BURNING MOTOR VEHICLE FUEL PROPERTY- Paragraph (1) shall not apply to the credit determined under section 46(4).' (e) CREDIT-EQUIVALENT PAYMENTS FOR PROPERTY OWNED BY STATE AND LOCAL GOVERNMENTS- (1) IN GENERAL- The Secretary of the Treasury or his delegate shall pay to each State governmental unit which files a claim under this paragraph for any calendar year an amount equal to the credit which would be determined under section 46(4) of the Internal Revenue Code of 1986 if-- (A) all qualified clean-burning motor vehicle fuel property (as defined in section 48(c) of such Code) held by such unit were used in a trade or business, (B) such unit were subject to tax under chapter 1 of such Code, and (C) such year were such unit's taxable year. (2) COORDINATION WITH RECAPTURE RULES- For purposes of section 50(a) of such Code, any payment under paragraph (1) shall be treated as a credit allowed by section 38. (3) TREATMENT AS OVERPAYMENT- For purposes of any law of the United States, any payment under paragraph (1) shall be treated as a refund of an overpayment of tax imposed by chapter 1 of such Code. (4) STATE GOVERNMENTAL UNIT- For purposes of this subsection, the term `State governmental unit' means any State or political subdivision thereof, the District of Columbia, and any agency or instrumentality of any of the foregoing. (f) RECAPTURE OF CREDIT IF PROPERTY CEASES TO BE QUALIFIED CLEAN-BURNING MOTOR VEHICLE FUEL PROPERTY- Subsection (a) of section 50 of such Code (relating to certain dispositions, etc., of investment credit property) is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new subparagraph: `(5) SPECIAL RULES FOR QUALIFIED CLEAN-BURNING MOTOR VEHICLE FUEL PROPERTY- If, during any taxable year, property with respect to which the taxpayer was allowed any qualified clean-burning motor vehicle credit under section 38 ceases to be qualified clean-burning motor vehicle fuel property at any time during the taxable year (but otherwise continues to be investment credit property), this paragraph shall be applied-- `(i) as if such property ceased to be investment credit property at the time of such cessation, and `(ii) by taking into account only the portion of the credit allowed by section 38 which is attributable to the qualified clean-burning motor vehicle credit.' (g) CLERICAL AMENDMENTS- (1) The section heading for section 48 of such Code is amended by inserting before the period `; qualified clean-burning motor vehicle credit'. (2) The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting before the period in the item relating to section 48 `; qualified clean-burning motor vehicle credit'. (h) EFFECTIVE DATE- The amendments made by this section shall apply to periods after December 31, 1991, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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