Alternative Fuel Utilization and Infrastructure Development Incentives Act of 2005 - Amends the Internal Revenue Code to allow tax credits for: (1) 50 percent of the cost of any residential or commercial alternative fuel vehicle refueling property to store or dispense E-85 fuel (alternative vehicle fuel consisting of at least 85 percent ethanol) that is placed in service; and (2) the retail sale of E-85 fuel for use in an alternative fuel motor vehicle.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3059 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3059
To provide for Flexible Fuel Vehicle (FFV) refueling capability at new
and existing refueling station facilities to promote energy security.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 24, 2005
Ms. Carson (for herself and Mr. Shimkus) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide for Flexible Fuel Vehicle (FFV) refueling capability at new
and existing refueling station facilities to promote energy security.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This Act may be cited as the ``Alternative Fuel
Utilization and Infrastructure Development Incentives Act of 2005''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this division 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) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title, etc.
Sec. 2. Purpose.
Sec. 3. Findings.
Sec. 4. Incentives for the installation of alternative fuel refueling
stations.
Sec. 5. Incentives for the retail sale of alternative fuels as motor
vehicle fuel.
SEC. 2. PURPOSE.
The purpose of this Act is to decrease the dependence of the United
States on foreign oil by increasing the use of high ratio blends of
gasoline with a minimum 85 percent domestically derived ethanol content
(E-85) as an alternative fuel and providing greater access to this fuel
for American motorists.
SEC. 3. FINDINGS.
Congress finds the following:
(1) The growing United States reliance on foreign produced
petroleum and the recent escalation of crude oil prices demands
that all prudent measures be undertaken to increase United
States refining capacity, domestic oil production, and expanded
utilization of alternative forms of transportation fuels and
infrastructure.
(2) Recent studies confirm the environmental and overall
energy security benefits of high ratio blends of gasoline with
a minimum 85 percent domestically derived ethanol content (E-
85), especially with regard to the reduction of greenhouse gas
emissions from the national on-road passenger car vehicle
fleet.
(3) The market penetration of E-85 capable Flexible Fuel
Vehicles (FFVs) now exceeds 5,000,000 with an additional
1,000,000 or more FFVs expected to be added annually as
automakers continue to respond positively to congressionally
provided production incentives.
(4) It is further recognized that actual implementation of
the use of E-85 fuel has been significantly underutilized due
primarily to the lack of E-85 refueling infrastructure
availability and promotion and that such utilization rate will
continue to lag unless resources are provided to substantially
accelerate national refueling infrastructure development.
(5) Additionally, incentives in the form of tax credits can
serve to stimulate infrastructure development and E-85 fuel
utilization.
SEC. 4. INCENTIVES FOR THE INSTALLATION OF ALTERNATIVE FUEL REFUELING
STATIONS.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
(relating to foreign tax credit, etc.) is amended by adding at the end
the following new section:
``SEC. 30B. ALTERNATIVE FUEL 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 cost of any qualified alternative fuel vehicle
refueling property placed in service by the taxpayer during the taxable
year.
``(b) Limitation.--
``(1) In general.--The credit allowed under subsection (a)
with respect to any alternative fuel vehicle refueling property
shall not exceed--
``(A) $30,000 in the case of a property of a
character subject to an allowance for depreciation, and
``(B) $1,000 in any other case.
``(2) Phaseout.--In the case of any qualified alternative
fuel vehicle refueling property placed in service after
December 31, 2010, the limit otherwise applicable under
paragraph (1) shall be reduced by--
``(A) 25 percent in the case of any alternative
fuel vehicle refueling property placed in service in
calendar year 2011, and
``(B) 50 percent in the case of any alternative
fuel vehicle refueling property placed in service in
calendar year 2012.
``(c) Definitions.--For purposes of this section--
``(1) Qualified alternative fuel vehicle refueling
property.--Except as provided in paragraph (2), the term
`qualified alternative fuel vehicle refueling property' has the
meaning given to such term by section 179A(d), but only with
respect to any fuel at least 85 percent of the volume of which
consists of ethanol.
``(2) Residential property.--In the case of any property
installed on property which is used as the principal residence
(within the meaning of section 121) of the taxpayer, paragraph
(1) of section 179A(d) shall not apply.
``(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, and 30, over
``(2) the tentative minimum tax for the taxable year.
``(e) 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, 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).
``(f) Special Rules.--For purposes of this section--
``(1) Basis reduction.--The basis of any property shall be
reduced by the portion of the cost of such property taken into
account under subsection (a).
``(2) 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).
``(3) Property used by tax-exempt entity.--In the case of
any qualified alternative fuel vehicle refueling property the
use of which is described in paragraph (3) or (4) of section
50(b) and which is not subject to a lease, the person who sold
such property to the person or entity using such property shall
be treated as the taxpayer that placed such property in
service, but only if such person clearly discloses to such
person or entity in a document the amount of any credit
allowable under subsection (a) with respect to such property
(determined without regard to subsection (d)).
``(4) Property used outside united states, etc., not
qualified.--No credit shall be allowable under subsection (a)
with respect to any property referred to in section 50(b)(1) or
with respect to the portion of the cost of any property taken
into account under section 179.
``(5) Election not to take credit.--No credit shall be
allowed under subsection (a) for any property if the taxpayer
elects not to have this section apply to such property.
``(6) Recapture rules.--Rules similar to the rules of
section 179A(e)(4) shall apply.
``(g) Regulations.--The Secretary shall prescribe such regulations
as necessary to carry out the provisions of this section.
``(h) Termination.--This section shall not apply to any property
placed in service after December 31, 2013.''.
(b) Conforming Amendments.--
(1) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (30), by striking the period at the end of
paragraph (31) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(32) to the extent provided in section 30B(f)(1).''.
(2) Section 55(c)(2) is amended by inserting ``30B(e),''
after ``30(b)(3),''.
(3) Section 6501(m) is amended by inserting ``30B(f)(5),''
after ``30(d)(4),''.
(4) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 30A the following new item:
``Sec. 30B. Alternative fuel vehicle refueling property credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
SEC. 5. INCENTIVES FOR THE RETAIL SALE OF ALTERNATIVE FUELS AS MOTOR
VEHICLE FUEL.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits) is amended by inserting after
section 40A the following new section:
``SEC. 40B. CREDIT FOR RETAIL SALE OF ALTERNATIVE FUELS AS MOTOR
VEHICLE FUEL.
``(a) General Rule.--The alternative fuel retail sales credit for
any taxable year is 35 cents for each gallon of alternative fuel sold
at retail by the taxpayer during such year.
``(b) Definitions.--For purposes of this section--
``(1) Alternative fuel.--The term `alternative fuel' means
any fuel at least 85 percent of the volume of which consists of
ethanol.
``(2) Sold at retail.--
``(A) In general.--The term `sold at retail' means
the sale, for a purpose other than resale, after
manufacture, production, or importation.
``(B) Use treated as sale.--If any person uses
alternative fuel (including any use after importation)
as a fuel to propel any qualified alternative fuel
motor vehicle (as defined in this section) before such
fuel is sold at retail, then such use shall be treated
in the same manner as if such fuel were sold at retail
as a fuel to propel such a vehicle by such person.
``(3) Qualified alternative fuel motor vehicle.--The term
`new qualified alternative fuel motor vehicle' means any motor
vehicle--
``(A) which is capable of operating on an
alternative fuel,
``(B) the original use of which commences with the
taxpayer,
``(C) which is acquired by the taxpayer for use or
lease, but not for resale, and
``(D) which is made by a manufacturer.
``(c) Election to Pass Credit.--A person which sells alternative
fuel at retail may elect to pass the credit allowable under this
section to the purchaser of such fuel or, in the event the purchaser is
a tax-exempt entity or otherwise declines to accept such credit, to the
person which supplied such fuel, under rules established by the
Secretary.
``(d) Pass-Thru in the Case of Estates and Trusts.--Under
regulations prescribed by the Secretary, rules similar to the rules of
subsection (d) of section 52 shall apply.
``(e) Termination.--This section shall not apply to any fuel sold
at retail after December 31, 2010.''.
(b) Credit Treated as Business Credit.--Section 38(b) (relating to
current year business credit) is amended by striking ``plus'' at the
end of paragraph (18), by striking the period at the end of paragraph
(19) and inserting ``, plus'', and by adding at the end the following
new paragraph:
``(20) the alternative fuel retail sales credit determined
under section 40B(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by inserting after the
item relating to section 40A the following new item:
``Sec. 40B. Credit for retail sale of alternative fuels as motor
vehicle fuel.''.
(d) Effective Date.--The amendments made by this section shall
apply to fuel sold at retail after the date of the enactment of this
Act, in taxable years ending after such date.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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