text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Clean Vehicles Incentive Act of 
  2013''.
  
  SEC. 2. CLEAN-FUEL CREDIT WITH RESPECT TO BUSINESSES LOCATED IN 
                NONATTAINMENT AREAS.
  
      (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
  of the Internal Revenue Code of 1986 (relating to business-related 
  credits) is amended by adding at the end the following new section:
  
  ``SEC. 45S. CLEAN-FUEL CREDIT WITH RESPECT TO BUSINESSES LOCATED IN 
                NONATTAINMENT AREAS.
  
      ``(a) In General.--For purposes of section 38, in the case of an 
  eligible business the clean-fuel credit determined under this section 
  for the taxable year is the sum of--
              ``(1) the clean-fuel property credit, plus
              ``(2) the clean-burning fuel use credit.
      ``(b) Clean-Fuel Property Credit.--
              ``(1) In general.--The clean-fuel property credit is the 
          sum of--
                      ``(A) qualified vehicle property costs, plus
                      ``(B) qualified refueling property costs.
              ``(2) Qualified vehicle property costs.--
                      ``(A) In general.--For purposes of paragraph (1), 
                  the term `qualified vehicle property costs' means the 
                  amount paid or incurred by the eligible business for 
                  qualified clean-fuel vehicle property which is placed 
                  in service during the taxable year by the eligible 
                  business and substantially all of the use of which is 
                  in a nonattainment area.
                      ``(B) Limitation.--The amount which may be taken 
                  into account under subparagraph (A) with respect to any 
                  motor vehicle shall not exceed--
                              ``(i) $8,000, in the case of a motor 
                          vehicle with a gross vehicle weight rating of 
                          not more than 8,500 pounds,
                              ``(ii) $20,000, in the case of a motor 
                          vehicle with a gross vehicle weight rating of 
                          more than 8,500 pounds but not more than 14,000 
                          pounds,
                              ``(iii) $40,000, in the case of a motor 
                          vehicle with a gross vehicle weight rating of 
                          more than 14,000 pounds but not more than 
                          26,000 pounds, and
                              ``(iv) $80,000, in the case of a motor 
                          vehicle with a gross vehicle weight rating of 
                          more than 26,000 pounds.
                      ``(C) Qualified clean-fuel vehicle property.--The 
                  term `qualified clean-fuel vehicle property' shall have 
                  the meaning given to such term by section 179A(c) 
                  (without regard to paragraphs (1)(A) and (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.
              ``(3) Qualified refueling property costs.--
                      ``(A) In general.--For purposes of paragraph (1), 
                  the term `qualified refueling property costs' means 
                  amounts paid or incurred by the eligible business for 
                  qualified clean-fuel vehicle refueling property (as 
                  defined by section 179A(d)) which is placed in service 
                  in a nonattainment area during the taxable year by the 
                  eligible business.
                      ``(B) Limitation.--
                              ``(i) In general.--The aggregate cost which 
                          may be taken into account under subparagraph 
                          (A) with respect to qualified clean-fuel 
                          vehicle refueling property placed in service by 
                          the eligible business during the taxable year 
                          at a location shall not exceed the lesser of--
                                      ``(I) $150,000, 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) Clean-Burning Fuel Use Credit.--
              ``(1) In general.--For purposes of subsection (a), the 
          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 business during the taxable year to propel 
          qualified clean-fuel vehicle property.
              ``(2) Clean-burning fuel.--For purposes of paragraph (1), 
          the term `clean-burning fuel' has the meaning given to such 
          term by section 179A, except that such term includes compressed 
          natural gas and biodiesel (as defined by section 40A(d)(1)).
              ``(3) Gasoline gallon equivalent.--For purposes of 
          paragraph (1), 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.
      ``(d) Other Definitions.--For purposes of this section--
              ``(1) Eligible business.--The term `eligible business' 
          means--
                      ``(A) a qualified business entity or a qualified 
                  proprietorship (as such terms are defined by section 
                  1397C, determined by substituting `nonattainment area' 
                  for `empowerment zone' and `enterprise zone' each place 
                  it appears), and
                      ``(B) a trade or business located outside of a 
                  nonattainment area, but only with respect to qualified 
                  clean-fuel vehicle property used substantially within a 
                  nonattainment area.
              ``(2) Nonattainment area.--The term `nonattainment area' 
          shall have the meaning given to such term by section 171 of the 
          Clean Air Act (42 U.S.C. 7501).
      ``(e) Denial of Double Benefit.--Except as provided in section 
  30B(d)(4), 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.
      ``(f) Recapture.--The Secretary shall, by regulations, provide for 
  recapturing the benefit under any credit allowable under subsection (a) 
  with respect to any property substantially all of the use of which is 
  not in a nonattainment area.''.
      (b) 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 (35), by striking 
  the period at the end of paragraph (36) and inserting ``, plus'', and 
  by adding at the end thereof the following new paragraph:
              ``(37) the clean-fuel credit determined under section 
          45S.''.
      (c) 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:
      ``(i) 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 45S.''.
      (d) Credit Allowed Against Regular and Minimum Tax.--Subparagraph 
  (B) of section 38(c)(4) of such Code (relating to specified credits) is 
  amended by striking ``and'' at the end of clause (viii), by striking 
  the period at the end of clause (ix) and inserting ``, and'', and by 
  inserting after clause (ix) the following:
                              ``(x) the credit determined under section 
                          45S.''.
      (e) Deduction for Certain Unused Business Credits.--Subsection (c) 
  of section 196 of such Code is amended by striking ``and'' at the end 
  of paragraph (13), by striking the period at the end of paragraph (14) 
  and inserting ``, and'', and by adding after paragraph (14) the 
  following new paragraph:
              ``(15) the clean fuels credit determined under section 
          45S.''.
      (f) Conforming Amendment.--The table of sections for subpart D of 
  part IV of subchapter A of chapter 1 of such Code is amended by 
  inserting after the item relating to section 45R the following new 
  item:
  
  ``Sec. 45S. Clean-fuel credit with respect to businesses located in 
                              nonattainment areas.''.
      (g) Effective Date.--The amendments made by this section shall 
  apply to property placed in service after December 31, 2012.
  
  SEC. 3. CREDIT FOR HYBRID VEHICLES PLACED IN SERVICE IN NONATTAINMENT 
                AREAS.
  
      (a) In General.--Subsection (d) of section 30B of the Internal 
  Revenue Code of 1986 is amended by adding at the end the following new 
  paragraph:
              ``(4) Vehicles placed in service in nonattainment area 
          after 2012.--
                      ``(A) In general.--No amount shall be allowed as a 
                  credit determined under this subsection for any taxable 
                  year beginning after 2012 with respect to a new 
                  qualified hybrid motor vehicle unless such vehicle is 
                  placed in service by an eligible business and 
                  substantially all of the use of which is in a 
                  nonattainment area.
                      ``(B) Recapture.--The Secretary shall, by 
                  regulations, provide for recapturing the benefit under 
                  any credit allowable under subsection (a) by reason of 
                  subparagraph (A) with respect to any property 
                  substantially all of the use of which is not in a 
                  nonattainment area.
                      ``(C) Phaseout not to apply.--For purposes of this 
                  subsection, subsection (f) shall not apply.
                      ``(D) Definitions.--For purposes of this 
                  subsection, the terms `eligible business' and 
                  `nonattainment area' have the meanings given such terms 
                  by section 45S(d).''.
      (b) Extension of Credit for Hybrid Vehicles Placed in Service in 
  Nonattainment Areas.--Paragraph (3) of section 30(k) of such Code is 
  amended to read as follows:
              ``(3) in the case of a new qualified hybrid motor vehicle 
          (as described in subsection (d)(2)(B))--
                      ``(A) December 31, 2009, and before January 1, 
                  2013, or
                      ``(B) December 31, 2012, and before January 1, 
                  2018.''.
      (c) Effective Date.--The amendments made by this section shall 
  apply to property placed in service after December 31, 2012.
target: Clean Vehicles Incentive Act of&nbsp;2013 - Amends the Internal Revenue Code to allow certain businesses located in areas designated as nonattainment areas under the Clean Air Act a general business tax credit for the cost of certain clean-fuel vehicle property and the use of clean-burning fuel. Allows the credit to be taken against regular and alternative minimum tax liabilities. Allows a tax deduction for any unused clean fuel credit amounts.  Allows a new qualified hybrid motor vehicle tax credit for any taxable year after 2012 only for such a vehicle which is placed in service after December 31, 2012, by an eligible business and substantially all of the use of which is in a nonattainment area.
feat_title: Clean Vehicles Incentive Act of 2013