Section
by Section Summary
Title I - Hydrogen Fuel Cell Vehicles
Section
101 encourages the use of hydrogen fuel cell vehicles by providing a
tax credit for purchasers of new qualified fuel cell vehicles. The tax
credit allowed is a percentage of the retail sale price for each qualified
fuel cell-powered vehicle with a cap on the total credit that can be
claimed. Initially, the credit allowed is 25 percent of the sale price,
with a cap set at $50,000. After 2009, the percentage credit and total
amount allowed would be phased down with the percentage credit reduced
to 5 percent and the total credit capped at $10,000 after 2012. In addition,
the amount of the credit is increased for any vehicle that achieves
fuel economy superior to the 2000 model year standards for that class
of vehicle. A purchaser of a qualified fuel cell vehicle may transfer
the tax credit to another person.
Section 102 exempts fuel cell vehicles from current
limits on the amount of depreciation that may be claimed for automobiles.
Section 103 establishes requirements for Federal
agencies that are currently required to purchase alternative fuel vehicles
for their fleets to include in their fleet purchases a minimum percentage
of hydrogen fuel cell vehicles.
Section 103 also requires in cases where there
are no public fueling facilities convenient or accessible to the locations
of Federal agencies required to purchase hydrogen fuel cell vehicles
that such agencies enter into commercial arrangements for fueling their
hydrogen fuel cell vehicles.
Section 104 sets a goal to use hydrogen-powered
fuel cells to replace U.S. reliance on 30 million barrels of foreign
oil.
Section 104 also an advisory commission to provide
recommendations to Congress and the Administration on how to accelerate
commercialization of hydrogen fuel cell vehicles and achieve the goal
of using these vehicles to replace 30 million barrels of foreign oil.
Title II - Hydrogen Fuel
Section
201 creates a hydrogen fuel retail sales credit of 50 cents for each
gasoline gallon equivalent of hydrogen sold at retail to propel a qualified
motor vehicle.
Section 202 establishes a credit for production
of hydrogen fuel from any source of $10 per barrel of oil equivalent.
An additional credit of $10 per barrel of oil equivalent is provided
for hydrogen fuel produced from renewable sources.
Section 203 provides a 10-year tax holiday for
any otherwise taxable motor fuel used to power a fuel cell vehicle.
Section 204 declares it is the Sense of Congress that no tax should
be imposed on hydrogen for a period of 10 years from the date of enactment.
Section 205 allows employers to provide their employees
with a 50 percent discount on the cost of hydrogen fuel as a tax-free
fringe benefit.
Section 206 creates an incentive to produce and
sell hydrogen fuel by excluding earnings from hydrogen fuel sales from
gross income subject to Federal income taxes.
Section 207 provides that each gallon equivalent
of ethanol used to produce hydrogen fuel counts as 100 gallons of ethanol
for purpose of satisfying any Federal law requiring a refiner or importer
of motor fuel to use ethanol or other renewable fuel in the production
or import of motor fuel.
Title III - Hydrogen Fueling Infrastructure
Section
301 creates a tax credit for taxpayers who install in their homes equipment
for refuelign hydrogen fuel cell vehicles of up to 50 percent of the
cost of the refueling equipment.
Section 302 creates an incentive to manufacture
and sell hydrogen fueling equipment by excluding earnings from hydrogen
fueling equipment sales from gross income subject to Federal income
taxes.
Section 303 extends an existing tax deduction for
clean fuel vehicle refueling properties until 2013 for hydrogen fueling
infrastructure.
Section 304 establishes a new tax deduction for
purchasers of hydrogen fuel cells that are intended to be expanded for
use for hydrogen vehicle fueling.
Section 305 provides for accelerated depreciated
of hydrogen fueling equipment.
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