Editor's Note:
Pub. L. 113-295, Div. A, Sec. 221(a)(34)(A), struck Sec. 179A, effective Dec. 19, 2014.
I.R.C. § 179A(a) Allowance Of Deduction
I.R.C. § 179A(a)(1) In General —
There shall be allowed as a deduction an amount equal to the cost of—
I.R.C. § 179A(a)(1)(A) —
any qualified clean-fuel vehicle property, and
I.R.C. § 179A(a)(1)(B) —
any qualified clean-fuel vehicle refueling property.
The deduction under the preceding sentence with respect to any property shall be
allowed for the taxable year in which such property is placed in service.
I.R.C. § 179A(a)(2) Incremental Cost For Certain Vehicles —
If a vehicle may be propelled by both a clean-burning fuel and any other fuel, only
the incremental cost of permitting the use of the clean-burning fuel shall be taken
into account.
I.R.C. § 179A(b) Limitations
I.R.C. § 179A(b)(1) Qualified Clean-Fuel Vehicle Property
I.R.C. § 179A(b)(1)(A) In General —
The cost which may be taken into account under subsection (a)(1)(A) with respect to any motor vehicle shall not exceed—
I.R.C. § 179A(b)(1)(A)(i) —
in the case of a motor vehicle not described in clause (ii) or (iii), $2,000,
I.R.C. § 179A(b)(1)(A)(ii) —
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, $5,000, or
I.R.C. § 179A(b)(1)(A)(iii) —
$50,000 in the case of—
I.R.C. § 179A(b)(1)(A)(iii)(I) —
a truck or van with a gross vehicle weight rating greater than 26,000 pounds, or
I.R.C. § 179A(b)(1)(A)(iii)(II) —
any bus which has a seating capacity of at least 20 adults (not including the driver).
I.R.C. § 179A(b)(1)(B) Phaseout —
In the case of any qualified clean-fuel vehicle property placed in service after
December 31, 2005, the limit otherwise allowable under subparagraph (A) shall be reduced by 75 percent.
I.R.C. § 179A(b)(2) Qualified Clean-Fuel Vehicle Refueling Property
I.R.C. § 179A(b)(2)(A) In General —
The aggregate cost which may be taken into account under subsection (a)(1)(B)
with respect to qualified clean-fuel vehicle refueling property placed in service
during the taxable year at a location shall not exceed the excess (if any) of—
I.R.C. § 179A(b)(2)(A)(i) —
$100,000, over
I.R.C. § 179A(b)(2)(A)(ii) —
the aggregate amount taken into account under subsection (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.
I.R.C. § 179A(b)(2)(B) Related Person —
For purposes of this paragraph, a person shall be treated as related to another
person if such person bears a relationship to such other person described in section
267(b) or 707(b)(1).
I.R.C. § 179A(b)(2)(C) Election —
If the limitation under subparagraph (A) applies for any taxable year, the taxpayer shall, on the return of tax for such
taxable year, specify the items of property (and the portion of costs of such property)
which are to be taken into account under subsection (a)(1)(B).
I.R.C. § 179A(c) Qualified Clean-Fuel Vehicle Property Defined —
For purposes of this section—
I.R.C. § 179A(c)(1) In General. —
The term “qualified clean fuel vehicle property” means property which is acquired
for use by the taxpayer and not for resale, the original use of which commences with
the taxpayer, with respect to which the environmental standards of paragraph (2) are met, and which is described in either of the following subparagraphs:
I.R.C. § 179A(c)(1)(A) Retrofit Parts And Components —
Any property installed on a motor vehicle which is propelled by a fuel which is
not a clean-burning fuel for purposes of permitting such vehicle to be propelled
by a clean-burning fuel—
I.R.C. § 179A(c)(1)(A)(i) —
if the property is an engine (or modification thereof) which may use a clean-burning
fuel, or
I.R.C. § 179A(c)(1)(A)(ii) —
to the extent the property is used in the storage or delivery to the engine of such
fuel, or the exhaust of gases from combustion of such fuel.
I.R.C. § 179A(c)(1)(B) Original Equipment Manufacturer's Vehicles —
A motor vehicle produced by an original equipment manufacturer and designed so that
the vehicle may be propelled by a clean-burning fuel, but only to the extent of the
portion of the basis of such vehicle which is attributable to an engine which may
use such fuel, to the storage or delivery to the engine of such fuel, or to the exhaust
of gases from combustion of such fuel.
I.R.C. § 179A(c)(2) Environmental Standards —
Property shall not be treated as qualified clean-fuel vehicle property unless—
I.R.C. § 179A(c)(2)(A) —
the motor vehicle of which it is a part meets any applicable Federal or State emissions
standards with respect to each fuel by which such vehicle is designed to be propelled,
or
I.R.C. § 179A(c)(2)(B) —
in the case of property described in paragraph (1)(A), such property meets applicable Federal and State emissions-related certification,
testing, and warranty requirements.
I.R.C. § 179A(c)(3) Exception For Qualified Electric Vehicles —
The term “qualified clean-fuel vehicle property” does not include any qualified
electric vehicle (as defined in section 30(c)).
I.R.C. § 179A(d) Qualified Clean-Fuel Vehicle Refueling Property Defined —
For purposes of this section, the term “qualified clean-fuel vehicle refueling property”
means any property (not including a building and its structural components) if—
I.R.C. § 179A(d)(1) —
such property is of a character subject to the allowance for depreciation,
I.R.C. § 179A(d)(2) —
the original use of such property begins with the taxpayer, and
I.R.C. § 179A(d)(3) —
such property is—
I.R.C. § 179A(d)(3)(A) —
for the storage or dispensing of a clean-burning fuel into the fuel tank of a motor
vehicle propelled by such fuel, but only if the storage or dispensing of the fuel
is at the point where such fuel is delivered into the fuel tank of the motor vehicle,
or
I.R.C. § 179A(d)(3)(B) —
for the recharging of motor vehicles propelled by electricity, but only if the property
is located at the point where the motor vehicles are recharged.
I.R.C. § 179A(e) Other Definitions And Special Rules —
For purposes of this section—
I.R.C. § 179A(e)(1) Clean-Burning Fuel —
The term “clean burning fuel” means—
I.R.C. § 179A(e)(1)(A) —
natural gas,
I.R.C. § 179A(e)(1)(B) —
liquefied natural gas,
I.R.C. § 179A(e)(1)(C) —
liquefied petroleum gas,
I.R.C. § 179A(e)(1)(D) —
hydrogen,
I.R.C. § 179A(e)(1)(E) —
electricity, and
I.R.C. § 179A(e)(1)(F) —
any other fuel at least 85 percent of which is 1 or more of the following: methanol,
ethanol, any other alcohol, or ether.
I.R.C. § 179A(e)(2) Motor Vehicle —
The term “motor vehicle” means any vehicle which is manufactured primarily for use
on public streets, roads, and highways
(not including a vehicle operated exclusively on a rail or rails)
and which has at least 4 wheels.
I.R.C. § 179A(e)(3) Cost Of Retrofit Parts Includes Cost Of Installation —
The cost of any qualified clean fuel vehicle property referred to in subsection
(c)(1)(A) shall include the cost of the original installation of such property.
I.R.C. § 179A(e)(4) Recapture —
The Secretary shall, by regulations, provide for recapturing the benefit of any
deduction allowable under subsection (a) with respect to any property
which ceases to be property eligible for such deduction.
I.R.C. § 179A(e)(5) Property Used Outside United States, Etc., Not Qualified —
No deduction shall be allowed under subsection (a) with respect to any property referred to in section 50(b) or with respect to the portion of the cost of any property taken into account under
section 179.
I.R.C. § 179A(e)(6) Basis Reduction
I.R.C. § 179A(e)(6)(A) In General —
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).
I.R.C. § 179A(e)(6)(B) Ordinary Income Recapture —
For purposes of section 1245, the amount of the deduction allowable under subsection (a) with respect to any property which is of a character subject to the allowance for
depreciation shall be treated as a deduction allowed for depreciation under section
167.
I.R.C. § 179A(f) Termination —
This section shall not apply to any property placed in service after December 31,
2005.
(Added by Pub. L. 102-486, Sec. 1913(a)(1), Oct. 24, 1992; amended by Pub. L. 104-188, title I, Sec. 1704(j)(2), Aug. 20, 1996, 110 Stat. 1755; Pub. L. 107-147, title VI, Sec. 606, Mar. 9, 2002, 116 Stat. 21; Pub. L. 108-311, title III, Sec. 319(a), Oct. 4, 2004, 118 Stat. 1166; Pub. L. 109-58, title XIII, Sec. 1348, Aug. 8, 2005, 119 Stat. 594; repealed by Pub. L. 113-295, Div. A, title II, Sec. 221(a)(34)(A), Dec. 19, 2014, 128 Stat. 4010.)
BACKGROUND NOTES
AMENDMENTS
2014 - Pub. L. 113-295, Div. A, Sec. 221(a)(34)(A), repealed Sec. 179A.
2005 - Subsec. (f). Pub. L. 109-58, Sec. 1348, amended subsec. (f) by substituting “December 31, 2005” for “December 31, 2006”.
2004 - Subsec. (b)(1)(B). Pub. L. 108-311, Sec. 319(a), amended subpar. (B). Before amendment is read as follows:
“(B) PHASEOUT.
“In the case of any qualified clean-fuel vehicle property placed in service after
December 31, 2003, the limit otherwise applicable under subparagraph (A) shall be
reduced by --
“(i) 25 percent in the case of property placed in service in calendar year 2004,
“(ii) 50 percent in the case of property placed in service in calendar year 2005,
and
“(iii) 75 percent in the case of property placed in service in calendar year 2006.”
2002 - Subsec. (b)(1)(B). Pub. L. 107-147, Sec. 606(a)(1)(A), amended subpar. (B) by substituting “December 31, 2003,” for “December 31, 2001,”.
Subsec. (b)(1)(B)(i)-(iii). Pub. L. 107-147, Sec. 606(a)(1)(B), amended clauses (i)-(iii) by substituting “2004”, “2005”, and “2006"
for “2002”, “2003”, and 2004”, respectively.
Subsec. (f). Pub. L. 107-147, Sec. 606(a)(2), amended subsec. (f) by substituting “December 31, 2006” for “December 31, 2004”.
1996 - Subsec. (g). Pub. L. 104-188, Sec. 1704(j)(2) redesignated subsec. (g) as subsec. (f).
EFFECTIVE DATE OF REPEAL
Repeal by Pub. L. 113-295, Div. A, Sec. 221(a)(34), effective on the date of the enactment of this Act [Enacted:
Dec. 19, 2014].
EFFECTIVE DATE OF 2005 AMENDMENT
Amendment by Sec. 1348 of Pub. L. 109-58 effective on the date of the enactment of this Act [Enacted: Aug. 8, 2005].
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Sec. 319(a) of Pub. L. 108-311 effective for property placed in service after December 31, 2003.
EFFECTIVE DATE OF 2002 AMENDMENTS
Amendments by Sec. 606 of Pub. L. 107-147 effective for property placed in service after December 31, 2001.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Sec. 1704 of Pub. L. 104-188 effective on the date of the enactment of this Act [enacted: Aug. 20, 1996].
EFFECTIVE DATE
Effective for property placed in service after June 30, 1983.
