Sec. 4. Credit for new qualified natural gas motor vehicles
1,006 words·~5 min read·
/bill/115/hr/5959/ih/section-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the credit amount determined under subsection
(b)with respect to each new qualified natural gas motor vehicle placed in service by the taxpayer during the taxable year. The amount determined under this subsection with respect to any new qualified natural gas motor vehicle is— $7,500, in the case of a new qualified natural gas motor vehicle which has a gross vehicle weight rating of less than 14,000 pounds, $15,000, in the case of a new qualified natural gas motor vehicle which has a gross vehicle weight rating of at least 14,000 pounds and not greater than 26,000 pounds, and $25,000, in the case of a new qualified natural gas motor vehicle which has a gross vehicle weight rating of more than 26,000 pounds. In the case of any vehicle which— is not fueled wholly by specified natural gas, and is not equipped with a dual-fuel compression engine that is engineered and designed to only operate on 90 percent or more specified natural gas, paragraph
(1)shall be applied by substituting for the dollar amount which is otherwise applicable for such vehicle an amount equal to 50 percent of such otherwise applicable amount. So much of the credit which would be allowed under subsection
(a)for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). For purposes of this title, the credit allowed under subsection
(a)for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. For purposes of this section— The term new qualified natural gas motor vehicle means a motor vehicle— the original use of which commences with the taxpayer, which is acquired for use or lease by the taxpayer and not for resale, which is made by a manufacturer, which is treated as a motor vehicle for purposes of title II of the Clean Air Act, which is fueled wholly or partially by specified natural gas, and in the case of a motor vehicle which is not fueled wholly by specified natural gas, has a driving range on specified natural gas of— in the case of a motor vehicle which has a gross vehicle weight rating of less than 8,500 pounds, at least 150 miles, and in any other case, at least 200 miles. The requirement of paragraph (1)(A) shall be treated as satisfied with respect to a motor vehicle if— such vehicle was originally manufactured and certified to operate on gasoline or diesel fuel, such vehicle has been modified to have the capability to operate on specified natural gas, and the original use of such vehicle after such modification commences with the taxpayer. The terms motor vehicle and manufacturer have the meaning given such terms under paragraphs
(2)and
(3)of section 30D(d), respectively. The term specified natural gas means compressed natural gas, liquefied natural gas, and renewable natural gas. In the case of a new qualified natural gas motor vehicle sold during the phaseout period with respect to such vehicle, only the applicable percentage of the credit otherwise allowable under subsection
(a)shall be allowed. For purposes of this subsection, the phaseout period is— in the case of a new qualified natural gas motor vehicle described in subsection (b)(1)(A), the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified natural gas motor vehicles described in subsection (b)(1)(A), manufactured by the manufacturer of such vehicle, and sold for use in the United States after December 31, 2018, is at least 200,000, and in the case of a new qualified natural gas motor vehicle described in subparagraph
(B)or
(C)of subsection (b)(1), the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the combined number of new qualified natural gas motor vehicles described in subparagraph
(B)or
(C)of subsection (b)(1), manufactured by the manufacturer of such vehicle, and sold for use in the United States after December 31, 2018, is at least 100,000. For purposes of paragraph (1), the applicable percentage is— 50 percent for the first 2 calendar quarters of the phaseout period, 25 percent for the 3d and 4th calendar quarters of the phaseout period, and 0 percent for each calendar quarter thereafter. Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection. Rules similar to the rules of section 30D(f) shall apply for purposes of this section. . Section 38(b) of such Code is amended by striking plus at the end of paragraph (31), by striking the period at the end of paragraph
(32)and inserting plus , and by adding at the end the following new paragraph: the portion of the new qualified natural gas motor vehicle credit to which section 30E(c)(1) applies. . Section 1016(a) of such Code is amended by striking and at the end of paragraph (37), by striking the period at the end of paragraph
(38)and inserting , and , and by adding at the end the following new paragraph: to the extent provided in section 30E(f). . Section 6501(m) of such Code is amended by inserting 30E(f), after 30D(e)(4), . The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 30E. New qualified natural gas motor vehicles. . The amendments made by this section shall apply to taxable years beginning after December 31, 2017.