article: SECTION 1. CREDIT FOR INSTALLATION OF HYDROGEN FUELING STATIONS. (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. 30B. HYDROGEN-POWERED VEHICLE REFUELING PROPERTY CREDIT. ``(a) Credit Allowed.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the amount paid or incurred by the taxpayer during the taxable year for the qualified hydrogen-powered vehicle refueling property and the installation thereof. ``(b) Year Credit Allowed.--The credit allowed under subsection (a) shall be allowed in the taxable year in which the qualified hydrogen- powered vehicle refueling property is placed in service by the taxpayer. ``(c) Definition of Qualified Hydrogen-Powered Vehicle Refueling Property.--The term `qualified hydrogen-powered vehicle refueling property' means any property (not including a building and its structural components) if-- ``(1) such property is of a character subject to the allowance for depreciation, ``(2) the original use of such property begins with the taxpayer, and ``(3) such property is for the production, storage, or dispensing of hydrogen fuel into the fuel tank of a motor vehicle propelled by such fuel. ``(d) Application With Other Credits.--The credit allowed under subsection (a) for any taxable year shall not exceed the excess (if any) of-- ``(1) the regular tax for the taxable year reduced by the sum of the credits allowable under subpart A and sections 27, 29, 30, and 30A, over ``(2) the tentative minimum tax for the taxable year. ``(e) Basis Reduction.--For purposes of this title, the basis of any property shall be reduced by the portion of the cost of such property taken into account under subsection (a). ``(f) No Double Benefit.--No deduction shall be allowed under section 179A with respect to any property with respect to which a credit is allowed under subsection (a). ``(g) Carryforward Allowed.-- ``(1) In general.--If the credit amount allowable under subsection (a) for a taxable year exceeds the amount of the limitation under subsection (d) for such taxable year (referred to as the `unused credit year' in this subsection), such excess shall be allowed as a credit carryforward for each of the 20 taxable years following the unused credit year. ``(2) Rules.--Rules similar to the rules of section 39 shall apply with respect to the credit carryforward under paragraph (1). ``(h) Special Rules.--Rules similar to the rules of paragraphs (4) and (5) of section 179A(e) shall apply. ``(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 property placed in service after December 31, 2013.''. (b) Conforming Amendments.-- (1) Section 1016(a) of such Code is amended by striking ``and'' at the end of paragraph (27), by striking the period at the end of paragraph (28) and inserting ``, and'', and by adding at the end the following new paragraph: ``(29) to the extent provided in section 30B(e).''. (2) Section 55(c)(2) of such Code is amended by inserting ``30B(d),'' after ``30(b)(3),''. (3) 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 30A the following new item: ``Sec. 30B. Hydrogen-powered vehicle refueling property credit.''. (c) Effective Date.--The amendments made by this section shall apply to property placed in service in taxable years beginning after the date of the enactment of this Act. SEC. 2. EXCLUSION OF EARNINGS FROM HYDROGEN FUEL SALES. (a) In General.--Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by inserting after section 136 the following new section: ``SEC. 136A. INCOME FROM HYDROGEN FUEL SALES. ``(a) Exclusion.--Gross income shall not include income attributable to the sale of hydrogen fuel sold at retail for use in a hydrogen fuel cell vehicle. ``(b) Definition of Hydrogen Fuel Cell Vehicle.--For purposes of this section, the term `hydrogen fuel cell vehicle' means a motor vehicle (as defined in section 30(c)(2)) which is propelled by power derived from 1 or more cells which convert chemical energy directly into electricity by combining oxygen with hydrogen fuel which is stored on board the vehicle in any form and may or may not require reformation prior to use. ``(c) Termination.--This section shall not apply to income attributable to sales after December 31, 2013.''. (b) Conforming Amendment.--The table of sections for subpart B of part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 136 the following new item: ``Sec. 136A. Income from hydrogen fuel sales.''. (c) Effective Date.--The amendments made by this section shall apply to income received after December 31, 2003, in taxable years ending after such date.
summary: Amends the Internal Revenue Code to allow a tax credit for 50 percent of the cost of a qualified hydrogen-powered vehicle refueling property (defined as depreciable property used for the production, storage, or dispensing of hydrogen fuel into the fuel tank of a motor vehicle) and its installation. Excludes from gross income amounts attributable to the sale of hydrogen fuel sold at retail for use in a hydrogen fuel cell vehicle.