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S. 3506 (110th): A bill to amend the Internal Revenue Code of 1986 to increase the credit for purchase of vehicles fueled by natural gas or liquefied natural gas and to amend the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users to reauthorize the Clean School Bus Program of the Environmental Protection Agency.


The text of the bill below is as of Sep 17, 2008 (Introduced). The bill was not enacted into law.


II

110th CONGRESS

2d Session

S. 3506

IN THE SENATE OF THE UNITED STATES

September 17, 2008

Mr. Reid (for ) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to increase the credit for purchase of vehicles fueled by natural gas or liquefied natural gas and to amend the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users to reauthorize the Clean School Bus Program of the Environmental Protection Agency.

1.

Increased credit for purchase of vehicles fueled by natural gas or liquified natural gas; extension of credit

(a)

In general

Subsection (e) of section 30B of the Internal Revenue Code of 1986 (relating to new qualified alternative motor vehicle credit) is amended by adding at the end the following new paragraph:

(6)

Increased credit for natural gas vehicles

(A)

Increased credit percentage

In the case of any natural gas vehicle, the applicable percentage under paragraph (2) shall be 100 percent.

(B)

Higher incremental cost limits for fleet purchasers

In the case of a taxpayer who places in service 100 or more natural gas vehicles during the taxable year, paragraph (3) shall be applied for such year by doubling the amounts contained in such paragraph.

(C)

Natural gas vehicle

For purposes of this paragraph, the term natural gas vehicle means any new qualified alternative fuel motor vehicle fueled by natural gas or liquified natural gas.

.

(b)

Extension of credit for all new qualified alternative fuel vehicles through 2017

Paragraph (4) of section 30B(j) of such Code is amended by striking December 31, 2010 and inserting December 31, 2017.

(c)

Effective date

The amendments made by this section shall apply to vehicles placed in service after December 31, 2008, in taxable years ending after such date.

2.

Clean School Bus Program

(a)

In general

Section 6015 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (42 U.S.C. 16091a) is amended—

(1)

in subsection (b)(5)—

(A)

in subparagraph (A)—

(i)

in the subparagraph heading, by striking 50 and inserting 75; and

(ii)

in the matter preceding clause (i), by striking one-half and inserting 75 percent; and

(B)

in subparagraph (B)—

(i)

in the subparagraph heading, by striking 25 and inserting 50; and

(ii)

in the matter preceding clause (i), by striking one-fourth and inserting 50 percent; and

(2)

in subsection (d)—

(A)

in paragraph (1), by striking and at the end;

(B)

in paragraph (2), by striking 2008, 2009, and 2010. and inserting 2008 and 2009; and; and

(C)

by adding at the end the following:

(3)

$110,000,000 for each of fiscal years 2010 through 2015.

.

(b)

Technical correction

Section 741 of the Energy Policy Act of 2005 (42 U.S.C. 16091) is repealed.

3.

Natural gas vehicles in Federal fleet

The Administrator of General Services, in consultation with the Administrator of the Environmental Protection Agency, shall conduct, and submit to Congress a report describing the results of, a study to determine whether and the extent to which the number of natural gas vehicles in the Federal fleet should be increased.