article: SECTION 1. CLEAN-FUEL VEHICLES USED BY ENTERPRISE ZONE BUSINESSES AND RENEWAL COMMUNITY BUSINESSES. (a) Empowerment Zones.--Part III of subchapter U of chapter 1 of the Internal Revenue Code of 1986 (relating to additional incentives for empowerment zones) is amended-- (1) by redesignating subpart D as subpart E, (2) by redesignating sections 1397C, 1397D, 1397E, and 1397F as sections 1397D, 1397E, 1397F, and 1397G, respectively, and (3) by inserting after subpart C the following new subpart: ``Subpart D--Incentives for Clean-Fuel Vehicles ``Sec. 1397C. Incentives for clean-fuel vehicles. ``SEC. 1397C. INCENTIVES FOR CLEAN-FUEL VEHICLES. ``(a) Zone Clean Fuels Credit.--For purposes of section 38, in the case of an eligible enterprise zone business, the amount of the zone clean fuels credit determined under this section for the taxable year is the sum of-- ``(1) the zone clean-fuel property credit, and ``(2) the zone clean-burning fuel use credit. ``(b) Zone Clean-Fuel Property Credit.-- ``(1) In general.--The zone clean-fuel property credit is the cost of-- ``(A) qualified clean-fuel vehicle property, plus ``(B) qualified clean-fuel vehicle refueling property. The credit under this section with respect to any property shall be allowed for the taxable year in which such property is placed in service by the eligible enterprise zone business. ``(2) Limitations.-- ``(A) Qualified clean-fuel vehicle property.--The cost which may be taken into account under paragraph (1)(A) with respect to any motor vehicle shall not exceed-- ``(i) $2,000 in the case of a motor vehicle not described in clause (ii) or (iii), ``(ii) $5,000 in the case of any truck or van with a gross vehicle weight rating greater than 10,000 pounds but not greater than 26,000 pounds, or ``(iii) $50,000 in the case of-- ``(I) a truck or van with a gross vehicle weight rating greater than 26,000 pounds, or ``(II) any bus which has a seating capacity of at least 20 adults (not including the driver). ``(B) Qualified clean-fuel vehicle refueling property.-- ``(i) In general.--The aggregate cost which may be taken into account under paragraph (1)(B) with respect to qualified clean-fuel vehicle refueling property placed in service by the eligible enterprise zone business during the taxable year at a location shall not exceed the lesser of-- ``(I) $100,000, or ``(II) the cost of such property reduced by the amount described in clause (ii). ``(ii) Reduction for amounts previously taken into account.--For purposes of clause (i)(II), the amount described in this clause is the sum of-- ``(I) the aggregate amount taken into account under paragraph (1)(B) for all preceding taxable years, and ``(II) the aggregate amount taken into account under section 179A(a)(1)(B) by the taxpayer (or any related person or predecessor) with respect to property placed in service at such location for all preceding taxable years. ``(iii) Special rules.--For purposes of this subparagraph, the provisions of subparagraphs (B) and (C) of section 179A(b)(2) shall apply. ``(c) Zone Clean-Burning Fuel Use Credit.--The zone clean-burning fuel use credit is the amount equal to 50 cents for each gasoline gallon equivalent of clean-burning fuel used by an eligible enterprise zone business during the taxable year to propel qualified clean-fuel vehicle property. ``(d) Definitions.--For purposes of this section-- ``(1) Eligible enterprise zone business.--The term `eligible enterprise zone business' means-- ``(A) an enterprise zone business (as defined in section 1397D) located within an area that is an empowerment zone or enterprise community and that is within a nonattainment area (within the meaning of section 171 of the Clean Air Act (42 U.S.C. 7501)), and ``(B) a trade or business located outside of an empowerment zone or enterprise community, but only with respect to qualified clean-fuel vehicle property used substantially within an area that is an empowerment zone or enterprise community and that is within a nonattainment area (within the meaning of section 171 of the Clean Air Act (42 U.S.C. 7501)). For purposes of this paragraph, section 1397D shall be applied by substituting `empowerment zone or enterprise community' for `empowerment zone' each place it appears. ``(2) Clean-burning fuel.--The term `clean-burning fuel' has the meaning given to such term by section 179A, except that such term includes compressed natural gas. ``(3) Qualified clean-fuel vehicle property.--The term `qualified clean-fuel vehicle property' has the meaning given to such term by section 179A(c) without regard to paragraph (3) thereof, except that such term does not include property that is a motor vehicle propelled by a fuel that is not a clean- burning fuel. ``(4) Qualified clean-fuel vehicle refueling property.--The term `qualified clean-fuel vehicle refueling property' has the meaning given to such term by section 179A(d). ``(5) Gasoline gallon equivalent.--The term `gasoline gallon equivalent' means, with respect to any clean burning fuel, the amount (determined by the Secretary) of such fuel having a Btu content of 114,000. ``(e) Denial of Double Benefit.--No credit shall be allowed under subsection (a) for any expense for which a deduction or credit is allowed under any other provision of this chapter.''. (b) Renewal Communities.--Part III of subchapter X of chapter 1 of the Internal Revenue Code of 1986 (relating to additional incentives for renewal communities) is amended by adding at the end the following new section: ``SEC. 1400K. RENEWAL COMMUNITY CLEAN FUELS CREDIT. ``(a) In General.--For purposes of section 1397C-- ``(1) a renewal community shall be treated as an empowerment zone, ``(2) a renewal community business shall be treated as an enterprise zone business, and ``(3) qualified renewal property shall be treated as qualified zone property.''. (c) Credit Made Part of General Business Credit.--Subsection (b) of section 38 of such Code (relating to current year business credit) is amended by striking ``plus'' at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ``, plus'', and by adding at the end thereof the following new paragraph: ``(13) the zone clean fuels credit determined under section 1397C.''. (d) Denial of Double Benefit.--Section 280C of such Code (relating to certain expenses for which credits are allowable) is amended by adding at the end thereof the following new subsection: ``(d) Zone Clean Fuels Expenses.--No deduction shall be allowed for that portion of expenses for clean-burning fuel otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 1397C.''. (e) Credit Allowed Against Regular and Minimum Tax.-- (1) In general.--Subsection (c) of section 38 of such Code (relating to limitation based on amount of tax) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: ``(3) Special rules for zone clean fuels credit.-- ``(A) In general.--In the case of the zone clean fuels credit-- ``(i) this section and section 39 shall be applied separately with respect to the credit, and ``(ii) in applying paragraph (1) to the credit-- ``(I) subparagraph (A) thereof shall not apply, and ``(II) the limitation under paragraph (1) (as modified by subclause (I)) shall be reduced by the credit allowed under subsection (a) for the taxable year (other than the zone clean fuels credit). ``(B) Zone clean fuels credit.--For purposes of this subsection, the term `zone clean fuels credit' means the credit allowable under subsection (a) by reason of section 1397B.''. (2) Conforming amendment.--Subclause (II) of section 38(c)(2)(A)(ii) of such Code is amended by inserting ``or the zone clean fuels credit'' after ``employment credit''. (f) Limitation on Carryback.--Subsection (d) of section 39 of such Code is amended by adding at the end the following new paragraph: ``(9) No carryback of zone clean fuels credit before effective date.--No portion of the unused business credit for any taxable year which is attributable to the credit determined under section 1397C may be carried back to any taxable year ending before the date of the enactment of section 1397C.''. (g) Deduction for Certain Unused Business Credits.--Subsection (c) of section 196 of such Code is amended by striking ``and'' at the end of paragraph (7), by striking the period at the end of paragraph (8) and inserting ``, and'', and by adding after paragraph (8) the following new paragraph: ``(9) the empowerment zone clean fuels credit determined under section 1397C.''. (h) Conforming Amendments.-- (1) Paragraph (2) of section 1394(b) of such Code is amended-- (A) by striking ``section 1397D'' and inserting ``section 1397E'', and (B) by striking ``section 1397D(a)(2)'' and inserting ``section 1397E(a)(2)''. (2) Paragraph (3) of section 1394(b) of such Code is amended-- (A) by striking ``section 1397C'' each place it appears and inserting ``section 1397D'', and (B) by striking ``section 1397C(d)'' and inserting ``section 1397D(d)''. (3) Paragraph (3) of section 1394(f) of such Code is amended by striking ``sections 1397C and 1397D'' both places it appears and inserting ``sections 1397D and 1397E''. (4) Section 1397B(b)(1)(A)(ii) of such Code is amended by striking ``section 1397C'' and inserting ``section 1397D''. (5) Sections 1400(e), 1400B(c), and 1400G of such Code are each amended by striking ``section 1397C'' each place it appears and inserting ``section 1397D''. (6) Section 1400J(b) of such Code is amended by striking ``section 1397D'' each place it appears and inserting ``section 1397E''. (7) Section 45D(d) of such Code is amended-- (A) in paragraph (2)(A)(v) by striking ``section 1397C(e)'' and inserting ``section 1397D(e)'', and (B) in paragraph (3) by striking ``section 1397C(d)'' and inserting ``section 1397D(d)''. (8) Section 1202(a)(2) of such Code is amended by striking ``section 1397C(b)'' and inserting ``section 1397D(b)''. (9) The table of subparts for part III of subchapter U of chapter 1 of such Code is amended by striking the last item and inserting the following new items: ``Subpart D. Incentives for Clean-Fuel Vehicles. ``Subpart E. General provisions.''. (10) The table of sections for subpart E of such part III is amended to read as follows: ``Sec. 1397E. Enterprise zone business defined. ``Sec. 1397E. Qualified zone property defined.''. (11) The table of sections for part III of subchapter X of chapter 1 of such Code is amended by adding at the end the following new item: ``Sec. 1400K. Renewal community clean fuels credit.''. (i) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2000.
summary: Amends the Internal Revenue Code to establish credits for the use of clean-fuel vehicles by businesses within empowerment zones, enterprise communities, and renewal communities.