Alternate Fuels Engine Development Act of 1979

Alternate Fuels Engine Development Act of 1979 - Title I: Alternative Fuels Engine Development Program - Directs the Secretary of Energy to establish a comprehensive program for the development of gas turbine engines for commercial production. Stipulates that such program shall include development of gasoline engine conversion systems. Authorizes the Secretary to make grants, contracts, and loans with specified types of institutions and organizations in order to carry out this title.

Authorizes the Secretary to make loans to qualified entities to assist in the commercial production of such engines and conversion systems.

Authorizes appropriations for programs described under this title.

Requires that federally-purchased vehicles be equipped with gas turbine engines or gasoline engine conversion systems.

Directs the Secretary to take such steps as necessary to assure participation by small businesses in the programs conducted under this title.

Terminates the provisions of this Act effective January 1, 1990.

Title II: Tax Incentives for Gas Turbine Engine Development and Production and for Gasoline Engine Conversion Equipment - Amends the Internal Revenue Code of 1954 to provide an additional 15 percent investment tax credit for gasoline conservation property, as defined under this Act.

Allows a tax deduction with respect to the amortization of any qualified gasoline conservation product facility based on a period of 60 months. Sets forth procedures for determining eligibility for and claiming such deduction.

Allows a tax credit for purchase of qualified gasoline conservation products.

Allows a tax deduction for fees paid for transportation of a taxpayer on any public transportation motor vehicle which uses any qualified gasoline conservation product.