SECTION 4. DEFINITIONS

AND CROSS REFERENCES TO APPLICABLE REGULATIONS

.01 Definitions . The following definitions apply for purposes of this notice:

(1) QAFV refueling property . QAFV refueling property is any property (other than a building or its structural components) that meets the following requirements:

(i) The property is not used predominantly outside the United States (or, in the case of property described in § 168(g)(4)(G), is property used predominantly in a U.S. possession).

(ii) The property is of a character subject to the allowance for depreciation or is installed on property that is used as the taxpayer’s principal residence (within the meaning of § 121)).

(iii) The original use of the property begins with the taxpayer.

(iv) The property is used for— (a) Storing alternative fuel at the point where the fuel is delivered into the fuel tank of a motor vehicle that is propelled by such fuel; or

(b) Dispensing alternative fuel at such point into the fuel tank of a motor vehicle that is propelled by such fuel.

(2) Dual-use property . Dual-use property is refueling property that is used—

(a) To store and/or dispense both alternative fuel and conventional fuel; or

(b) Both to store alternative fuel that is dispensed into the fuel tanks of motor vehicles at the location of the storage facility and to store alternative fuel that is transported to other locations.

(3) Alternative fuel . A fuel is an alternative fuel if—

(i) At least 85 percent of its volume consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen; or

(ii) It is a qualifying biodiesel mixture. (4) Qualifying biodiesel mixture . A fuel is a qualifying biodiesel mixture if it is a mixture of biodiesel (as defined in § 40A(d)(1)) and diesel fuel (as defined in § 4083(a)(3)) and the mixture contains at least 20 percent biodiesel. For this purpose, any kerosene in a mixture—

(i) Is disregarded in determining whether the mixture is a mixture of biodiesel and diesel fuel; and

(ii) Is taken into account in determining whether the mixture contains at least 20 percent biodiesel.

(5) Conventional fuel . Conventional fuel is any fuel that is not an alternative fuel. Conventional fuel includes diesel fuel that is not in a qualifying biodiesel mixture and gasoline.

(6) Conventional refueling property . Conventional refueling property is property that is used to dispense or store only conventional fuel.

(7) Fuel tank . The fuel tank of a motor vehicle that is propelled by alternative fuel includes only the tank that supplies fuel to the propulsion engine of the vehicle.

.02 Cross References to Applicable Regulations . The following provisions of the Income Tax Regulations (26 CFR Part

1. apply for purposes of this notice: (1) Building and structural compo- nents . Whether property is a building or a structural component of a building is determined under the principles of § 1.48–1(e).

(2) Original use . Whether the original use of property begins with the taxpayer is determined under the principles of § 1.48–2.

(3) Placed in service . The year in which property is placed in service and whether the property is placed in service as QAFV refueling property are determined under the principles of § 1.46–3(d).

(4) Subject to allowance for depreci- ation . Whether property is of a character subject to the allowance for depreciation is determined under the principles of § 1.48–1(b).

(5) Use outside the United States . Whether property is used predominantly outside the United States is determined under the principles of § 1.48–1(g).