Common Sense Automobile Efficiency Act of 2005 - Amends the Internal Revenue Code to repeal the phaseouts of the tax credit for qualified electric vehicles and of the tax deduction for clean-fuel vehicles.
Increases from 30 million to 60 million the productive capacity limit for small ethanol producers for purposes of qualifying for the tax credit for alcohol used as fuel.
Denies an export exemption from gasoline excise taxes for fuel delivered into the tank of a motor vehicle which is shipped or driven outside the United States.
Allows a tax credit for investment in certain alternative motor vehicles, including fuel cell vehicles, advanced lean burn technology motor vehicles, hybrid motor vehicles, and alternative fuel motor vehicles. Sets forth formulae for determining the amount of such credit based on various factors, including vehicle weight and fuel efficiency ratings.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1744 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1744
To amend the Internal Revenue Code of 1986 to provide incentives for
alternative fuels and alternative fuel vehicles.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 20, 2005
Mr. Ruppersberger introduced the following bill; which was referred to
the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide incentives for
alternative fuels and alternative fuel vehicles.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Common Sense Automobile Efficiency
Act of 2005''.
SEC. 2. REPEAL OF PHASEOUTS FOR QUALIFIED ELECTRIC VEHICLES AND CLEAN-
FUEL VEHICLES.
(a) Qualified Electric Vehicles.--Subsection (b) of section 30 of
the Internal Revenue Code of 1986 (relating to limitations) is amended
by striking paragraph (2) and redesignating paragraph (3) as paragraph
(2).
(b) Clean-Fuel Vehicles and Certain Refueling Property.--Paragraph
(1) of section 179A(b) of such Code (relating to qualified clean-fuel
vehicle property) is amended to read as follows:
``(1) Qualified clean-fuel vehicle property.--The cost
which may be taken into account under subsection (a)(1)(A) with
respect to any motor vehicle shall not exceed--
``(A) in the case of a motor vehicle not described
in subparagraph (B) or (C), $2,000,
``(B) 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
``(C) $50,000 in the case of--
``(i) a truck or van with a gross vehicle
weight rating greater than 26,000 pounds, or
``(ii) any bus which has a seating capacity
of at least 20 adults (not including the
driver).''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 3. SMALL ETHANOL PRODUCER CREDIT.
(a) Definition of Small Ethanol Producer.--Section 40(g) of the
Internal Revenue Code of 1986 (relating to definitions and special
rules for eligible small ethanol producer credit) is amended by
striking ``30,000,000'' each place it appears and inserting
``60,000,000''.
(b) Conforming Amendment.--Section 1388 of such Code (relating to
definitions and special rules for cooperative organizations) is amended
by adding at the end the following new subsection:
``(l) Cross Reference.--For provisions relating to the
apportionment of the alcohol fuels credit between cooperative
organizations and their patrons, see section 40(g)(6).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
SEC. 4. NONAPPLICATION OF EXPORT EXEMPTION TO DELIVERY OF FUEL TO MOTOR
VEHICLES REMOVED FROM UNITED STATES.
(a) In General.--Section 4221(d)(2) of the Internal Revenue Code of
1986 (defining export) is amended by adding at the end the following
new sentence: ``Such term does not include the delivery of a taxable
fuel (as defined in section 4083(a)(1)) into a fuel tank of a motor
vehicle which is shipped or driven out of the United States.''.
(b) Conforming Amendments.--
(1) Section 4041(g) of such Code (relating to other
exemptions) is amended by adding at the end the following new
sentence: ``Paragraph (3) shall not apply to the sale for
delivery of a liquid into a fuel tank of a motor vehicle which
is shipped or driven out of the United States.''.
(2) Clause (iv) of section 4081(a)(1)(A) of such Code
(relating to tax on removal, entry, or sale) is amended by
inserting ``or at a duty-free sales enterprise (as defined in
section 555(b)(8) of the Tariff Act of 1930)'' after ``section
4101''.
(c) Effective Date.--The amendments made by this section shall
apply to sales or deliveries made after the date of the enactment of
this Act.
SEC. 5. ALTERNATIVE MOTOR VEHICLE CREDIT.
(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:
``SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to the sum of--
``(1) the new qualified fuel cell motor vehicle credit
determined under subsection (b),
``(2) the new advanced lean burn technology motor vehicle
credit determined under subsection (c),
``(3) the new qualified hybrid motor vehicle credit
determined under subsection (d), and
``(4) the new qualified alternative fuel motor vehicle
credit determined under subsection (e).
``(b) New Qualified Fuel Cell Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a), the new
qualified fuel cell motor vehicle credit determined under this
subsection with respect to a new qualified fuel cell motor
vehicle placed in service by the taxpayer during the taxable
year shall be determined in accordance with the following
table:
The new qualified fuel
``In the case of a vehicle which has a gross cell motor vehicle
vehicle weight rating of-- credit is--
Not more than 8,500 lbs........................ $4,000
More than 8,500 lbs but not more than 14,000 $10,000
lbs...........................................
More than 14,000 lbs but not more than 26,000 $20,000
lbs...........................................
More than 26,000 lbs........................... $40,000.
``(2) Increase for fuel efficiency.--
``(A) In general.--The amount determined under
paragraph (1) with respect to a new qualified fuel cell
motor vehicle which is a passenger automobile or light
truck shall be increased by the additional credit
amount.
``(B) Additional credit amount.--For purposes of
subparagraph (A), the additional credit amount shall be
determined in accordance with the following table:
``In the case of a vehicle which achieves a
fuel economy (expressed as a percentage of the The additional credit
2002 model year city fuel economy) of-- amount is--
At least 150 percent but less than 175 percent. $1,000
At least 175 percent but less than 200 percent. $1,500
At least 200 percent but less than 225 percent. $2,000
At least 225 percent but less than 250 percent. $2,500
At least 250 percent but less than 275 percent. $3,000
At least 275 percent but less than 300 percent. $3,500
At least 300 percent........................... $4,000.
``(3) New qualified fuel cell motor vehicle.--For purposes
of this subsection, the term `new qualified fuel cell motor
vehicle' means a motor vehicle--
``(A) which is propelled by power derived from one
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,
``(B) which, in the case of a passenger automobile
or light truck, has received--
``(i) a certificate of conformity under the
Clean Air Act and meets or exceeds the
equivalent qualifying California low emission
vehicle standard under section 243(e)(2) of the
Clean Air Act for that make and model year, and
``(ii) a certificate that such vehicle
meets or exceeds the Bin 5 Tier II emission
standard established in regulations prescribed
by the Administrator of the Environmental
Protection Agency under section 202(i) of the
Clean Air Act for that make and model year
vehicle,
``(C) the original use of which commences with the
taxpayer,
``(D) which is acquired for use or lease by the
taxpayer and not for resale, and
``(E) which is made by a manufacturer.
``(c) New Advanced Lean Burn Technology Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a), the new
advanced lean burn technology motor vehicle credit determined
under this subsection with respect to a new advanced lean burn
technology motor vehicle placed in service by the taxpayer
during the taxable year is the credit amount determined under
paragraph (2).
``(2) Credit amount.--
``(A) Fuel economy.--The credit amount determined
under this paragraph shall be determined in accordance
with the following table:
``In the case of a vehicle which achieves a
fuel economy (expressed as a percentage of the The credit amount is--
2002 model year city fuel economy) of--
At least 125 percent but less than 150 percent. $400
At least 150 percent but less than l75 percent. $800
At least 175 percent but less than 200 percent. $1,200
At least 200 percent but less than 225 percent. $1,600
At least 225 percent but less than 250 percent. $2,000
At least 250 percent........................... $2,400.
``(B) Conservation credit.--The amount determined
under subparagraph (A) with respect to a new advanced
lean burn technology motor vehicle shall be increased
by the conservation credit amount determined in
accordance with the following table:
``In the case of a vehicle which achieves a
lifetime fuel savings (expressed in gallons of The conservation credit
gasoline) of-- amount is--
At least 1,200 but less than 1,800............. $250
At least 1,800 but less than 2,400............. $500
At least 2,400, but less than 3,000............ $750
At least 3,000................................. $1,000.
``(3) New advanced lean burn technology motor vehicle.--For
purposes of this subsection, the term `new advanced lean burn
technology motor vehicle' means a passenger automobile or a
light truck--
``(A) with an internal combustion engine which--
``(i) is designed to operate primarily
using more air than is necessary for complete
combustion of the fuel,
``(ii) incorporates direct injection,
``(iii) achieves at least 125 percent of
the 2002 model year city fuel economy, and
``(iv) for 2005 and later model vehicles,
has received a certificate that such vehicle
meets or exceeds--
``(I) in the case of a vehicle
having a gross vehicle weight rating of
6,000 pounds or less, the Bin 5 Tier II
emission standard established in
regulations prescribed by the
Administrator of the Environmental
Protection Agency under section 202(i)
of the Clean Air Act for that make and
model year vehicle, and
``(II) in the case of a vehicle
having a gross vehicle weight rating of
more than 6,000 pounds but not more
than 8,500 pounds, the Bin 8 Tier II
emission standard which is so
established,
``(B) the original use of which commences with the
taxpayer,
``(C) which is acquired for use or lease by the
taxpayer and not for resale, and
``(D) which is made by a manufacturer.
``(4) Lifetime fuel savings.--For purposes of this
subsection, the term `lifetime fuel savings' means, in the case
of any new advanced lean burn technology motor vehicle, an
amount equal to the excess (if any) of--
``(A) 120,000 divided by the 2002 model year city
fuel economy for the vehicle inertia weight class, over
``(B) 120,000 divided by the city fuel economy for
such vehicle.
``(d) New Qualified Hybrid Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a), the new
qualified hybrid motor vehicle credit determined under this
subsection with respect to a new qualified hybrid motor vehicle
placed in service by the taxpayer during the taxable year is
the credit amount determined under paragraph (2).
``(2) Credit amount.--
``(A) Credit amount for passenger automobiles and
light trucks.--In the case of a new qualified hybrid
motor vehicle which is a passenger automobile or light
truck and which has a gross vehicle weight rating of
not more than 8,500 pounds, the amount determined under
this paragraph is the sum of the amounts determined
under clauses (i) and (ii).
``(i) Fuel economy.--The amount determined
under this clause is the amount which would be
determined under subsection (c)(2)(A) if such
vehicle were a vehicle referred to in such
subsection.
``(ii) Conservation credit.--The amount
determined under this clause is the amount
which would be determined under subsection
(c)(2)(B) if such vehicle were a vehicle
referred to in such subsection.
``(B) Credit amount for other motor vehicles.--
``(i) In general.--In the case of any new
qualified hybrid motor vehicle to which
subparagraph (A) does not apply, the amount
determined under this paragraph is the amount
equal to the applicable percentage of the
qualified incremental hybrid cost of the
vehicle as certified under clause (v).
``(ii) Applicable percentage.--For purposes
of clause (i), the applicable percentage is--
``(I) 20 percent if the vehicle
achieves an increase in city fuel
economy relative to a comparable
vehicle of at least 30 percent but less
than 40 percent,
``(II) 30 percent if the vehicle
achieves such an increase of at least
40 percent but less than 50 percent,
and
``(III) 40 percent if the vehicle
achieves such an increase of at least
50 percent.
``(iii) Qualified incremental hybrid
cost.--For purposes of this subparagraph, the
qualified incremental hybrid cost of any
vehicle is equal to the amount of the excess of
the manufacturer's suggested retail price for
such vehicle over such price for a comparable
vehicle, to the extent such amount does not
exceed--
``(I) $7,500, if such vehicle has a
gross vehicle weight rating of not more
than 14,000 pounds,
``(II) $15,000, if such vehicle has
a gross vehicle weight rating of more
than 14,000 pounds but not more than
26,000 pounds, and
``(III) $30,000, if such vehicle
has a gross vehicle weight rating of
more than 26,000 pounds.
``(iv) Comparable vehicle.--For purposes of
this subparagraph, the term `comparable
vehicle' means, with respect to any new
qualified hybrid motor vehicle, any vehicle
which is powered solely by a gasoline or diesel
internal combustion engine and which is
comparable in weight, size, and use to such
vehicle.
``(v) Certification.--A certification
described in clause (i) shall be made by the
manufacturer and shall be determined in
accordance with guidance prescribed by the
Secretary. Such guidance shall specify
procedures and methods for calculating fuel
economy savings and incremental hybrid costs.
``(3) New qualified hybrid motor vehicle.--For purposes of
this subsection--
``(A) In general.--The term `new qualified hybrid
motor vehicle' means a motor vehicle--
``(i) which draws propulsion energy from
onboard sources of stored energy which are
both--
``(I) an internal combustion or
heat engine using consumable fuel, and
``(II) a rechargeable energy
storage system,
``(ii) which, in the case of a vehicle to
which paragraph (2)(A) applies, has received a
certificate of conformity under the Clean Air
Act and meets or exceeds the equivalent
qualifying California low emission vehicle
standard under section 243(e)(2) of the Clean
Air Act for that make and model year, and
``(I) in the case of a vehicle
having a gross vehicle weight rating of
6,000 pounds or less, the Bin 5 Tier II
emission standard established in
regulations prescribed by the
Administrator of the Environmental
Protection Agency under section 202(i)
of the Clean Air Act for that make and
model year vehicle, and
``(II) in the case of a vehicle
having a gross vehicle weight rating of
more than 6,000 pounds but not more
than 8,500 pounds, the Bin 8 Tier II
emission standard which is so
established,
``(iii) which has a maximum available power
of at least--
``(I) 4 percent in the case of a
vehicle to which paragraph (2)(A)
applies,
``(II) 10 percent in the case of a
vehicle which has a gross vehicle
weight rating or more than 8,500 pounds
and not than 14,000 pounds, and
``(III) 15 percent in the case of a
vehicle in excess of 14,000 pounds,
``(iv) which, in the case of a vehicle to
which paragraph (2)(B) applies, has an internal
combustion or heat engine which has received a
certificate of conformity under the Clean Air
Act as meeting the emission standards set in
the regulations prescribed by the Administrator
of the Environmental Protection Agency for 2005
through 2008 model year diesel heavy duty
engines or ottocycle heavy duty engines, as
applicable,
``(v) the original use of which commences
with the taxpayer,
``(vi) which is acquired for use or lease
by the taxpayer and not for resale, and
``(vii) which is made by a manufacturer.
Such term shall not include any vehicle which is not a
passenger automobile or light truck if such vehicle has
a gross vehicle weight rating of less than 8,500
pounds.
``(B) Consumable fuel.--For purposes of
subparagraph (A)(i)(I), the term `consumable fuel'
means any solid, liquid, or gaseous matter which
releases energy when consumed by an auxiliary power
unit.
``(C) Maximum available power.--
``(i) Certain passenger automobiles and
light trucks.--In the case of a vehicle to
which paragraph (2)(A) applies, the term
`maximum available power' means the maximum
power available from the rechargeable energy
storage system, during a standard 10 second
pulse power or equivalent test, divided by such
maximum power and the SAE net power of the heat
engine.
``(ii) Other motor vehicles.--In the case
of a vehicle to which paragraph (2)(B) applies,
the term `maximum available power' means the
maximum power available from the rechargeable
energy storage system, during a standard 10
second pulse power or equivalent test, divided
by the vehicle's total traction power. For
purposes of the preceding sentence, the term
`total traction power' means the sum of the
peak power from the rechargeable energy storage
system and the heat engine peak power of the
vehicle, except that if such storage system is
the sole means by which the vehicle can be
driven, the total traction power is the peak
power of such storage system.
``(e) New Qualified Alternative Fuel Motor Vehicle Credit.--
``(1) Allowance of credit.--Except as provided in paragraph
(5), the new qualified alternative fuel motor vehicle credit
determined under this subsection is an amount equal to the
applicable percentage of the incremental cost of any new
qualified alternative fuel motor vehicle placed in service by
the taxpayer during the taxable year.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage with respect to any new
qualified alternative fuel motor vehicle is--
``(A) 40 percent, plus
``(B) 30 percent, if such vehicle--
``(i) has received a certificate of
conformity under the Clean Air Act and meets or
exceeds the most stringent standard available
for certification under the Clean Air Act for
that make and model year vehicle (other than a
zero emission standard), or
``(ii) has received an order certifying the
vehicle as meeting the same requirements as
vehicles which may be sold or leased in
California and meets or exceeds the most
stringent standard available for certification
under the State laws of California (enacted in
accordance with a waiver granted under section
209(b) of the Clean Air Act) for that make and
model year vehicle (other than a zero emission
standard).
For purposes of the preceding sentence, in the case of any new
qualified alternative fuel motor vehicle which has a gross
vehicle weight rating of more than 14,000 pounds, the most
stringent standard available shall be such standard available
for certification on the date of the enactment of the Common
Sense Automobile Efficiency Act of 2005.
``(3) Incremental cost.--For purposes of this subsection,
the incremental cost of any new qualified alternative fuel
motor vehicle is equal to the amount of the excess of the
manufacturer's suggested retail price for such vehicle over
such price for a gasoline or diesel fuel motor vehicle of the
same model, to the extent such amount does not exceed--
``(A) $5,000, if such vehicle has a gross vehicle
weight rating of not more than 8,500 pounds,
``(B) $10,000, if such vehicle has a gross vehicle
weight rating of more than 8,500 pounds but not more
than 14,000 pounds,
``(C) $25,000, if such vehicle has a gross vehicle
weight rating of more than 14,000 pounds but not more
than 26,000 pounds, and
``(D) $40,000, if such vehicle has a gross vehicle
weight rating of more than 26,000 pounds.
``(4) New qualified alternative fuel motor vehicle.--For
purposes of this subsection--
``(A) In general.--The term `new qualified
alternative fuel motor vehicle' means any motor
vehicle--
``(i) which is only capable of operating on
an alternative fuel,
``(ii) the original use of which commences
with the taxpayer,
``(iii) which is acquired by the taxpayer
for use or lease, but not for resale, and
``(iv) which is made by a manufacturer.
``(B) Alternative fuel.--The term `alternative
fuel' means compressed natural gas, liquefied natural
gas, liquefied petroleum gas, hydrogen, and any liquid
at least 85 percent of the volume of which consists of
methanol.
``(5) Credit for mixed-fuel vehicles.--
``(A) In general.--In the case of a mixed-fuel
vehicle placed in service by the taxpayer during the
taxable year, the credit determined under this
subsection is an amount equal to--
``(i) in the case of a 75/25 mixed-fuel
vehicle, 70 percent of the credit which would
have been allowed under this subsection if such
vehicle was a qualified alternative fuel motor
vehicle, and
``(ii) in the case of a 90/10 mixed-fuel
vehicle, 90 percent of the credit which would
have been allowed under this subsection if such
vehicle was a qualified alternative fuel motor
vehicle.
``(B) Mixed-fuel vehicle.--For purposes of this
subsection, the term `mixed-fuel vehicle' means any
motor vehicle described in subparagraph (C) or (D) of
paragraph (3), which--
``(i) is certified by the manufacturer as
being able to perform efficiently in normal
operation on a combination of an alternative
fuel and a petroleum-based fuel,
``(ii) either--
``(I) has received a certificate of
conformity under the Clean Air Act, or
``(II) has received an order
certifying the vehicle as meeting the
same requirements as vehicles which may
be sold or leased in California and
meets or exceeds the low emission
vehicle standard under section 88.105-
94 of title 40, Code of Federal
Regulations, for that make and model
year vehicle,
``(iii) the original use of which commences
with the taxpayer,
``(iv) which is acquired by the taxpayer
for use or lease, but not for resale, and
``(v) which is made by a manufacturer.
``(C) 75/25 mixed-fuel vehicle.--For purposes of
this subsection, the term `75/25 mixed-fuel vehicle'
means a mixed-fuel vehicle which operates using at
least 75 percent alternative fuel and not more than 25
percent petroleum-based fuel.
``(D) 90/10 mixed-fuel vehicle.--For purposes of
this subsection, the term `90/10 mixed-fuel vehicle'
means a mixed-fuel vehicle which operates using at
least 90 percent alternative fuel and not more than 10
percent petroleum-based fuel.
``(f) Limitation Based on Amount of Tax.--The credit allowed under
subsection (a) for the taxable year shall not exceed the excess of--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) the sum of the credits allowable under subpart A and
sections 27 and 30 for the taxable year.
``(g) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Motor vehicle.--The term `motor vehicle' has the
meaning given such term by section 30(c)(2).
``(2) Other terms.--The terms `automobile', `passenger
automobile', `light truck', and `manufacturer' have the
meanings given such terms in regulations prescribed by the
Administrator of the Environmental Protection Agency for
purposes of the administration of title II of the Clean Air Act
(42 U.S.C. 7521 et seq.).
``(3) 2002 model year city fuel economy.--
``(A) In general.--The 2002 model year city fuel
economy with respect to a vehicle shall be determined
in accordance with the following tables:
``(i) In the case of a passenger
automobile:
The 2002 model year
``If vehicle inertia weight class is: city fuel economy is:
1,500 or 1,750 lbs............................. 45.2 mpg
2,000 lbs...................................... 39.6 mpg
2,250 lbs...................................... 35.2 mpg
2,500 lbs...................................... 31.7 mpg
2,750 lbs...................................... 28.8 mpg
3,000 lbs...................................... 26.4 mpg
3,500 lbs...................................... 22.6 mpg
4,000 lbs...................................... 19.8 mpg
4,500 lbs...................................... 17.6 mpg
5,000 lbs...................................... 15.9 mpg
5,500 lbs...................................... 14.4 mpg
6,000 lbs...................................... 13.2 mpg
6,500 lbs...................................... 12.2 mpg
7,000 to 8,500 lbs............................. 11.3 mpg.
``(ii) In the case of a light truck:
The 2002 model year
``If vehicle inertia weight class is: city economy is:
1,500 or 1,750 lbs............................. 39.4 mpg
2,000 lbs...................................... 35.2 mpg
2,250 lbs...................................... 31.8 mpg
2,500 lbs...................................... 29.0 mpg
2,750 lbs...................................... 26.8 mpg
3,000 lbs...................................... 24.9 mpg
3,500 lbs...................................... 21.8 mpg
4,000 lbs...................................... 19.4 mpg
4,500 lbs...................................... 17.6 mpg
5,000 lbs...................................... 16.1 mpg
5,500 lbs...................................... 14.8 mpg
6,000 lbs...................................... 13.7 mpg
6,500 lbs...................................... 12.8 mpg
7,000 to 8,500 lbs............................. 12.1 mpg.
``(B) Vehicle inertia weight class.--For purposes
of subparagraph (A), the term `vehicle inertia weight
class' has the same meaning as when defined in
regulations prescribed by the Administrator of the
Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42
U.S.C. 7521 et seq.).
``(4) Fuel economy.--Fuel economy with respect to any
vehicle shall be measured under rules similar to the rules
under section 4064(c).
``(5) Reduction in basis.--For purposes of this subtitle,
if a credit is allowed under this section for any expenditure
with respect to any property, the increase in the basis of such
property which would (but for this paragraph) result from such
expenditure shall be reduced by the amount of the credit so
allowed.
``(6) No double benefit.--The amount of any deduction or
credit allowable under this chapter (other than the credits
allowable under this section and section 30) shall be reduced
by the amount of credit allowed under subsection (a) for such
vehicle for the taxable year.
``(7) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which ceases
to be property eligible for such credit (including recapture in
the case of a lease period of less than the economic life of a
vehicle).
``(8) Property used outside united states, etc., not
qualified.--No credit 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.
``(9) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(10) Business carryovers allowed.--If the credit
allowable under subsection (a) for a taxable year exceeds the
limitation under subsection (g) for such taxable year, such
excess (to the extent of the credit allowable with respect to
property subject to the allowance for depreciation) shall be
allowed as a credit carryback and carryforward under rules
similar to the rules of section 39.
``(11) Interaction with motor vehicle safety standards.--
Unless otherwise provided in this section, a motor vehicle
shall not be considered eligible for a credit under this
section unless such vehicle is in compliance with the motor
vehicle safety provisions of sections 30101 through 30169 of
title 49, United States Code.
``(h) Regulations.--
``(1) In general.--The Secretary shall promulgate such
regulations as necessary to carry out the provisions of this
section.
``(2) Determination of motor vehicle eligibility.--The
Secretary, after coordination with the Secretary of
Transportation and the Administrator of the Environmental
Protection Agency, shall prescribe such regulations as
necessary to determine whether a motor vehicle meets the
requirements to be eligible for a credit under this section.
``(i) Termination.--This section shall not apply to any property
placed in service after--
``(1) in the case of a new qualified alternative fuel motor
vehicle, December 31, 2007,
``(2) in the case of a new advanced lean burn technology
motor vehicle or a new qualified hybrid motor vehicle, December
31, 2009, and
``(3) in the case of a new qualified fuel cell motor
vehicle, December 31, 2013.''.
(b) Conforming Amendments.--
(1) Section 30(d) of such Code (relating to special rules)
is amended by adding at the end the following new paragraphs:
``(5) No double benefit.--No credit shall be allowed under
this section for any motor vehicle for which a credit is also
allowed under section 30B.''.
(2) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (30), by striking the period at the end of
paragraph (31) and inserting ``, and'', and by adding at the
end the following:
``(32) to the extent provided in section 30B(h)(5).''.
(3) Section 6501(m) of such Code is amended by inserting
``30B(h)(9),'' after ``30(d)(4),''.
(4) 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:
``Sec. 30B. Alternative motor vehicle credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
(d) Sticker Information Required at Retail Sale.--
(1) In general.--The Secretary of the Treasury shall issue
regulations under which each qualified vehicle sold at retail
shall display a notice--
(A) that such vehicle is a qualified vehicle, and
(B) that the buyer may not benefit from the credit
allowed under section 30B of the Internal Revenue Code
of 1986 if such buyer has insufficient tax liability.
(2) Qualified vehicle.--For purposes of paragraph (1), the
term ``qualified vehicle'' means a vehicle with respect to
which a credit is allowed under section 30B of the Internal
Revenue Code of 1986.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR 4/21/2005 E724)
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line