Text: H.R.1835 — 111th Congress (2009-2010)

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Introduced in House (04/01/2009)


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[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 1835 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1835

  To amend the Internal Revenue Code of 1986 to encourage alternative 
                  energy investments and job creation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 2009

 Mr. Boren (for himself, Mr. Larson of Connecticut, Mr. Sullivan, Mr. 
   Abercrombie, Mr. Bishop of Georgia, Mr. Burgess, Mr. Conaway, Mr. 
Kagen, Mr. McMahon, Ms. Markey of Colorado, Mr. Miller of Florida, Mr. 
  Minnick, Mr. Teague, and Mr. Thompson of California) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
 and in addition to the Committees on Oversight and Government Reform 
and Science and Technology, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to encourage alternative 
                  energy investments and job creation.

    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 ``New Alternative 
Transportation to Give Americans Solutions Act of 2009''.
    (b) Amendment of 1986 Code.--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) Table of Contents.--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 alternative fuel vehicle 
                            credit.
Sec. 103. Allowance of vehicle and infrastructure credits against 
                            regular and minimum tax and transferability 
                            of credits.
Sec. 104. Modification of credit for purchase of vehicles fueled by 
                            natural gas or liquified natural gas.
Sec. 105. Modification of definition of new qualified alternative fuel 
                            motor vehicle.
      TITLE II--PROMOTE PRODUCTION OF NGVS BY ORIGINAL EQUIPMENT 
                             MANUFACTURERS

Sec. 201. Credit for producing vehicles fueled by natural gas or 
                            liquified natural gas.
TITLE III--TO 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.

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.

    (a) Alternative Fuel Credit.--Paragraph (5) of section 6426(d) 
(relating to alternative fuel credit) is amended by inserting ``, and 
December 31, 2027, in the case of any sale or use involving compressed 
or liquefied natural gas)'' after ``hydrogen''.
    (b) Alternative Fuel Mixture Credit.--Paragraph (3) of section 
6426(d) is amended by inserting ``, and December 31, 2027, in the case 
of any sale or use involving compressed or liquefied natural gas)'' 
after ``hydrogen''.
    (c) Payments Relating to Alternative Fuel or Alternative Fuel 
Mixtures.--Paragraph (6) of section 6427(e) is amended--
            (1) in subparagraph (C)--
                    (A) by striking ``subparagraph (D)'' in 
                subparagraph (C) and inserting ``subparagraphs (D) and 
                (E)'', and
                    (B) by striking ``and'' at the end thereof,
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``, and'',
            (3) by inserting at the end the following: ``or with 
        respect to compressed or liquefied natural gas'' after 
        ``subparagraph (D)''.
                    ``(E) any alternative fuel or alternative fuel 
                mixture (as so defined) involving compressed or 
                liquefied natural gas.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after the date of the enactment of this Act.

SEC. 102. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL VEHICLE 
              CREDIT.

    (a) In General.--Paragraph (4) of section 30B(k) (relating to 
termination) is amended by inserting ``(December 31, 2027, in the case 
of a vehicle powered by compressed or liquefied natural gas)'' before 
the period at the end.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 103. ALLOWANCE OF VEHICLE AND INFRASTRUCTURE CREDITS AGAINST 
              REGULAR AND MINIMUM TAX AND TRANSFERABILITY OF CREDITS.

    (a) Business Credits.--Subparagraph (B) of section 38(c)(4) 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 new clauses:
                            ``(ix) the portion of the credit determined 
                        under section 30B which is attributable to the 
                        application of subsection (e)(3) thereof with 
                        respect to qualified alternative fuel motor 
                        vehicles which are capable of being powered by 
                        compressed or liquefied natural gas, and
                            ``(x) 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.''.
    (b) Personal Credits.--
            (1) New qualified alternative fuel motor vehicles.--
        Subsection (g) of section 30B is amended by adding at the end 
        the following new paragraph:
            ``(3) Special rule relating to certain new qualified 
        alternative fuel motor vehicles.--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 qualified alternative fuel motor vehicles which are 
        capable of being powered by compressed or liquefied natural 
        gas--
                    ``(A) paragraph (2) shall (after the application of 
                paragraph (1)) be applied separately with respect to 
                such portion, and
                    ``(B) in lieu of the limitation determined under 
                paragraph (2), such limitation shall not exceed the 
                excess (if any) of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the 
                        tentative minimum tax for the taxable year, 
                        reduced by
                            ``(ii) the sum of the credits allowable 
                        under subpart A and sections 27 and 30.''.
            (2) Alternative fuel vehicle refueling properties.--
        Subsection (d) of section 30C is amended by adding at the end 
        the following new paragraph:
            ``(3) Special rule relating to certain alternative fuel 
        vehicle refueling properties.--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)--
                    ``(A) paragraph (2) shall (after the application of 
                paragraph (1)) be applied separately with respect to 
                such portion, and
                    ``(B) in lieu of the limitation determined under 
                paragraph (2), such limitation shall not exceed the 
                excess (if any) of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the 
                        tentative minimum tax for the taxable year, 
                        reduced by
                            ``(ii) 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.''.
    (c) Credits May Be Transferred.--
            (1) Vehicle credits.--Subsection (h) of section 30B is 
        amended by adding at the end the following new paragraph:
            ``(11) Transferability of credit.--Nothing in any law or 
        rule of law shall be construed to limit a taxpayer from 
        transferring, through sale and repurchase agreement, the credit 
        allowed by this section for qualified alternative fuel motor 
        vehicles which are capable of being powered by compressed or 
        liquefied natural gas.''.
            (2) Infrastructure credit.--Subsection (e) of section 30C 
        is amended by adding at the end the following new paragraph:
            ``(6) Credit may be transferred.--Nothing in any law or 
        rule of law shall be construed to limit a taxpayer from 
        transferring the credit allowed by this section through sale 
        and repurchase agreements.''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to property placed in service after the date of the 
enactment of this Act.

SEC. 104. MODIFICATION OF CREDIT FOR PURCHASE OF VEHICLES FUELED BY 
              NATURAL GAS OR LIQUIFIED NATURAL GAS.

    (a) Increase in Credit.--Paragraph (2) of section 30B(e) (relating 
to applicable percentage) is amended to read as follows:
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage with respect to any new 
        qualified alternative fuel motor vehicle is--
                    ``(A) except as provided in subparagraphs (B) and 
                (C)--
                            ``(i) 50 percent, plus
                            ``(ii) 30 percent, if such vehicle--
                                    ``(I) 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
                                    ``(II) 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)
                    ``(B) 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
                    ``(C) 50 percent, in the case of vehicles described 
                subsection (e)(4)(A)(i)(II).
        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.''.
    (b) Higher Incremental Cost Limits for Natural Gas Vehicles.--
Subsection (e) of section 30B (relating to new qualified alternative 
motor vehicle credit) is amended by adding at the end the following new 
paragraph:
            ``(6) Higher incremental cost limits for natural gas 
        vehicles.--In the case of alternative fueled motor vehicles 
        with respect to vehicles powered by compressed or liquefied 
        natural gas, paragraph (3) shall be applied--
                    ``(A) in subparagraph (A) by substituting `$12,500' 
                for `$5,000',
                    ``(B) in subparagraph (B) by substituting `$20,000' 
                for `$10,000',
                    ``(C) in subparagraph (C) by substituting `$50,000' 
                for `$25,000', and
                    ``(D) in subparagraph (D) by substituting `$80,000' 
                for `$40,000'.''.
    (c) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act.

SEC. 105. MODIFICATION OF DEFINITION OF NEW QUALIFIED ALTERNATIVE FUEL 
              MOTOR VEHICLE.

    (a) In General.--Clause (i) of section 30B(e)(4)(A) (relating to 
definition of new qualified alternative fuel motor vehicle) is amended 
to read as follows:
                            ``(i) which--
                                    ``(I) is only capable of operating 
                                on an alternative fuel, or
                                    ``(II) is capable of operating on 
                                compressed or liquefied natural gas and 
                                (but not in combination with) 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.''.
    (b) Conversions and Repowers.--Paragraph (4) of section 30B(e) is 
amended by adding at the end the following new subparagraph:
                    ``(C) Conversions and repowers.--
                            ``(i) In general.--The term `new qualified 
                        alternative fuel vehicle' includes the 
                        conversion or repower of a new or used vehicle 
                        so that it is capable of operating on a 
                        qualified alternative fuel as it was not 
                        previously capable of operating on an 
                        alternative fuel.
                            ``(ii) Treatment as new.--A vehicle which 
                        has been converted to operate on alternative 
                        fuel shall be treated as new on the date of 
                        such conversion for purposes of this section.
                            ``(iii) Rule of construction.--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.''.
    (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.

      TITLE II--PROMOTE PRODUCTION OF NGVS BY ORIGINAL EQUIPMENT 
                             MANUFACTURERS

SEC. 201. CREDIT FOR PRODUCING VEHICLES FUELED BY NATURAL GAS OR 
              LIQUIFIED NATURAL GAS.

    (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 45Q the following new section:

``SEC. 45R. PRODUCTION OF VEHICLES FUELED BY NATURAL GAS OR LIQUIFIED 
              NATURAL GAS.

    ``(a) In General.--For purposes of section 38, in the case of a 
taxpayer who is a manufacturer of natural gas vehicles, the natural gas 
vehicle credit determined under this section for any taxable year with 
respect to each eligible natural gas vehicle produced by the taxpayer 
during such year is an amount equal to the lesser of--
            ``(1) 10 percent of the manufacturer's basis in such 
        vehicle, or
            ``(2) $4,000.
    ``(b) Aggregate Credit Allowed.--The aggregate amount of credit 
allowed under subsection (a) with respect to a taxpayer for any taxable 
year shall not exceed $200,000,000 reduced by the amount of the credit 
allowed under subsection (a) to the taxpayer (or any predecessor) for 
all prior taxable years.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible natural gas vehicle.--The term `eligible 
        natural gas vehicle' means any motor vehicle (as defined in 
        section 30(c)(2))--
                    ``(A) which--
                            ``(i) is only capable of operating on 
                        natural gas or liquefied natural gas, or
                            ``(ii) is capable of operating on 
                        compressed or liquefied natural gas and (but 
                        not in combination with) 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, and
                    ``(B) the final assembly of which is in the United 
                States.
            ``(2) Manufacturer.--The term `manufacturer' has the 
        meaning given such term in regulations prescribed by the 
        Administrator of the Environmental Protection Agency for 
        purposes of the administration of title II of the Clean Air Act 
        (42 U.S.C. 7521 et seq.).
    ``(d) Special Rules.--For purposes of this section--
            ``(1) In general.--Rules similar to the rules of 
        subsections (c), (d), and (e) of section 52 shall apply.
            ``(2) Controlled groups.--
                    ``(A) In general.--All persons treated as a single 
                employer under subsection (a) or (b) of section 52 or 
                subsection (m) or (o) of section 414 shall be treated 
                as a single producer.
                    ``(B) Inclusion of foreign corporations.--For 
                purposes of subparagraph (A), in applying subsections 
                (a) and (b) of section 52 to this section, section 1563 
                shall be applied without regard to subsection (b)(2)(C) 
                thereof.
            ``(3) Verification.--No amount shall be allowed as a credit 
        under subsection (a) with respect to which the taxpayer has not 
        submitted such information or certification as the Secretary, 
        in consultation with the Secretary of Energy, determines 
        necessary.
    ``(e) Termination.--This section shall not apply to any vehicle 
produced after December 31, 2017.''.
    (b) Credit To Be Part of Business Credit.--Section 38(b) 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 the following:
            ``(36) the natural gas vehicle credit determined under 
        section 45R(a).''.
    (c) Conforming 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 45Q the following new item:

``Sec. 45R. Production of vehicles fueled by natural gas or liquified 
                            natural gas.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to vehicles produced after December 31, 2008.

TITLE III--TO 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.

    (a) In General.--Subsection (g) of section 30C is amended by 
striking ``and'' at the end of paragraph (1), by redesignating 
paragraph (2) as paragraph (3), and by inserting after paragraph (1) 
the following new paragraph:
            ``(2) in the case of property relating to compressed or 
        liquefied natural gas, after December 31, 2027.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 302. INCREASE IN CREDIT FOR CERTAIN ALTERNATIVE FUEL VEHICLE 
              REFUELING PROPERTIES.

    (a) In General.--Subsection (b) of section 30C is amended to read 
as follows:
    ``(b) Limitation.--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--
            ``(1) except as provided in paragraph (2), $30,000 in the 
        case of a property of a character subject to an allowance for 
        depreciation,
            ``(2) in the case of a compressed natural gas, or liquefied 
        natural gas, the lesser of--
                    ``(A) 50 percent of such cost, or
                    ``(B) $100,000, and
            ``(3) $2,000 in any other case.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to property placed in service after the date of the enactment of 
this Act.

                     TITLE IV--NATURAL GAS VEHICLES

SEC. 401. NATURAL GAS VEHICLES IN FEDERAL FLEET.

    Not later than December 31, 2014, and thereafter, at least 50 
percent of all new vehicles purchased or placed into service by the 
United States Government shall be vehicles that are capable of 
operating on compressed or liquefied natural gas.

SEC. 402. GRANTS FOR NATURAL GAS VEHICLES RESEARCH AND DEVELOPMENT.

    (a) In General.--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.
    (b) Limitation.--The aggregate amount of grants under subsection 
(a) for any fiscal year shall not exceed $30,000,000.
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