[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5746 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 5746
To amend the Internal Revenue Code of 1986 to establish the
infrastructure foundation for the hydrogen economy, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 9, 2008
Mr. Larson of Connecticut (for himself, Mr. Dent, Mr. Wynn, Mr. Inglis
of South Carolina, Ms. DeLauro, Mr. Doyle, Mr. Holden, Mr. Wamp, Mr.
Terry, Mr. McNulty, and Mr. Butterfield) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish the
infrastructure foundation for the hydrogen economy, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Hydrogen Tax Incentives Act of
2008''.
SEC. 2. HYDROGEN INFRASTRUCTURE AND FUEL COSTS.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to foreign tax credit,
etc.) is amended by adding at the end the following new section:
``SEC. 30D. HYDROGEN INFRASTRUCTURE AND FUEL COSTS.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to the sum of--
``(1) the hydrogen infrastructure costs credit determined
under subsection (b), and
``(2) the hydrogen fuel costs credit determined under
subsection (c).
``(b) Hydrogen Infrastructure Costs Credit.--
``(1) In general.--For purposes of subsection (a), the
hydrogen infrastructure costs credit determined under this
subsection with respect to each eligible hydrogen production
and distribution facility of the taxpayer is an amount equal to
30 percent of so much of the infrastructure costs for the
taxable year as does not exceed $200,000 with respect to such
facility.
``(2) Eligible hydrogen production and distribution
facility.--For purposes of this subsection, the term `eligible
hydrogen production and distribution facility' means a hydrogen
production and distribution facility which is placed in service
after December 31, 2007.
``(c) Hydrogen Fuel Costs Credit.--
``(1) In general.--For purposes of subsection (a), the
hydrogen fuel costs credit determined under this subsection
with respect to each eligible hydrogen device of the taxpayer
is an amount equal to the qualified hydrogen expenditure
amounts with respect to such device.
``(2) Qualified hydrogen expenditure amount.--For purposes
of this subsection--
``(A) In general.--The term `qualified hydrogen
expenditure amount' means, with respect to each
eligible hydrogen energy conversion device of the
taxpayer with a production capacity of not more than 25
kilowatts of electricity, the lesser of--
``(i) 30 percent of the amount paid or
incurred by the taxpayer during the taxable
year for hydrogen which is consumed by such
device, and
``(ii) $2,000.
In the case of any device which is not owned by the
taxpayer at all times during the taxable year, the
$2,000 amount in clause (ii) shall be reduced by an
amount which bears the same ratio to $2,000 as the
portion of the year which such device is not owned by
the taxpayer bears to the entire year.
``(B) Higher limitation for devices with more
production capacity.--In the case of any eligible
hydrogen energy conversion device with a production
capacity of--
``(i) more than 25 but less than 100
kilowatts of electricity, subparagraph (A)
shall be applied by substituting `$4,000' for
`$2,000' each place it appears, and
``(ii) not less than 100 kilowatts of
electricity, subparagraph (A) shall be applied
by substituting `$6,000' for `$2,000' each
place it appears.
``(3) Eligible hydrogen energy conversion devices.--For
purposes of this subsection--
``(A) In general.--The term `eligible hydrogen
energy conversion device' means, with respect to any
taxpayer, any hydrogen energy conversion device which--
``(i) is placed in service after December
31, 2004, and
``(ii) is wholly owned by the taxpayer
during the taxable year.
If an owner of a device (determined without regard to
this subparagraph) provides to the primary user of such
device a written statement that such user shall be
treated as the owner of such device for purposes of
this section, then such user (and not such owner) shall
be so treated.
``(B) Hydrogen energy conversion device.--The term
`hydrogen energy conversion device' means--
``(i) any electrochemical device which
converts hydrogen into electricity, and
``(ii) any combustion engine which burns
hydrogen as a fuel.
``(d) Reduction in Basis.--For purposes of this subtitle, if a
credit is allowed under this section for any expenditure with respect
to any property, the increase in the basis of such property which would
(but for this paragraph) result from such expenditure shall be reduced
by the amount of the credit so allowed.
``(e) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--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 amounts which (but
for subsection (g) would be allowed as a deduction under
section 162 shall be treated as a credit listed in section
38(b) for such taxable year (and not allowed under subsection
(a)).
``(2) Personal credit.--The credit allowed under subsection
(a) (after the application of paragraph (1)) for any taxable
year shall not exceed the excess (if any) of--
``(A) the regular tax liability (as defined in
section 26(b)) reduced by the sum of the credits
allowable under subpart A and sections 27, 30, 30B, and
30C, over
``(B) the tentative minimum tax for the taxable
year.
``(f) Denial of Double Benefit.--The amount of any deduction or
other credit allowable under this chapter for any cost taken into
account in determining the amount of the credit under subsection (a)
shall be reduced by the amount of such credit attributable to such
cost.
``(g) Recapture.--The Secretary shall, by regulations, provided for
recapturing the benefit of any credit allowable under subsection (a)
with respect to any property which ceases to be property eligible for
such credit.
``(h) 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.
``(i) Regulations.--The Secretary shall prescribe such regulations
as necessary to carry out the provisions of this section.
``(j) Termination.--This section shall not apply to any costs paid
or incurred after the end of the 3-year period beginning on the date of
the enactment of this section.''.
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986 is
amended by striking ``plus'' at the end of paragraph (30), by
striking the period at the end of paragraph (31) and inserting
``plus'', and by adding at the end the following new paragraph:
``(32) the portion of the hydrogen infrastructure and fuel
credit to which section 30D(e)(1) applies.''.
(2) Section 55(c)(3) of such Code is amended by inserting
``30D(e)(2),'' after ``30C(d)(2),''.
(3) Section 1016(a) of such Code is amended by striking
``and'' at the end of paragraph (36), by striking the period at
the end of paragraph (37) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(38) to the extent provided in section 30D(d).''.
(4) Section 6501(m) of such Code is amended by inserting
``30D(h),'' after ``30C(e)(5),''.
(5) The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 30C the following new item:
``Sec. 30D. Hydrogen infrastructure and fuel costs.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after December 31, 2007, in taxable
years ending after such date.
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