Efficient Vehicle Leadership Act of 2019
This bill allows a new tax credit for certain fuel-efficient motor vehicles. It also imposes a fee on manufacturers of fuel guzzler motor vehicles with less efficient fuel economy ratings.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7862 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7862
To amend the Internal Revenue Code of 1986 to provide tax incentives
and fees for increasing motor vehicle fuel economy, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 30, 2020
Mr. Casten of Illinois introduced the following bill; which was
referred to the Committee on Ways and Means, and in addition to the
Committee on Energy and Commerce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide tax incentives
and fees for increasing motor vehicle fuel economy, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short Title.--This Act may be cited as the ``Efficient Vehicle
Leadership Act of 2019''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
SEC. 2. TAX CREDIT FOR FUEL-EFFICIENT MOTOR VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
(relating to other credits) is amended by inserting after section 30D
the following new section:
``SEC. 30E. FUEL PERFORMANCE REBATE.
``(a) Allowance of Credit.--
``(1) In general.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an
amount equal to the amount determined under paragraph (2) with
respect to any new qualified fuel-efficient motor vehicle
placed in service by the taxpayer during the taxable year.
``(2) Credit amount.--With respect to each new qualified
fuel-efficient motor vehicle, the amount determined under this
paragraph shall be equal to the product of--
``(A) the absolute value of the difference between
the fuel-economy rating and the reference fuel-economy
rating for such motor vehicle for the model year,
``(B) 100, and
``(C) the applicable amount.
``(3) Applicable amount.--For purposes of paragraph (2)(C),
the applicable amount is equal to--
``(A) in the case of model year 2021--
``(i) $1,000, or
``(ii) $2,000, if the fuel-economy rating
for such motor vehicle is at least 50 percent
more efficient than the reference fuel-economy
rating for such motor vehicle as determined
under paragraph (2)(A), and
``(B) in the case of any succeeding model year--
``(i) $1,500,
``(ii) $2,500, if the fuel-economy rating
for such motor vehicle is at least 50 percent
more efficient than the reference fuel-economy
rating for such motor vehicle as determined
under paragraph (2)(A), or
``(iii) $3,500, if the fuel-economy rating
for such motor vehicle is at least 75 percent
more efficient than the reference fuel-economy
rating for such motor vehicle as determined
under paragraph (2)(A).
``(b) New Qualified Fuel-Efficient Motor Vehicle.--For purposes of
this section, the term `new qualified fuel-efficient motor vehicle'
means a passenger automobile or light truck--
``(1) which is treated as a motor vehicle for purposes of
title II of the Clean Air Act,
``(2) which achieves a fuel-economy rating that is more
efficient than the reference fuel-economy rating for such motor
vehicle for the model year,
``(3) for which standards are prescribed pursuant to
section 32902 of title 49, United States Code,
``(4) the original use of which commences with the
taxpayer,
``(5) which is acquired for use or lease by the taxpayer
and not for resale, and
``(6) which is made by a manufacturer beginning with model
year 2021.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard
to this subsection) that is attributable to property of a
character subject to an allowance for depreciation shall be
treated as a credit listed in section 38(b) for such taxable
year (and not allowed under subsection (a)).
``(2) Refundable personal credit.--
``(A) In general.--For purposes of this title, the
credit allowed under subsection (a) for any taxable
year (determined after application of paragraph (1))
shall be treated as a credit allowable under subpart C
for such taxable year (and not allowed under subsection
(a)).
``(B) Refundable credit may be transferred.--
``(i) In general.--A taxpayer may, in
connection with the purchase of a new qualified
fuel-efficient motor vehicle, transfer any
refundable credit described in subparagraph (A)
to any person who is in the trade or business
of selling new qualified fuel-efficient motor
vehicles and who sold such vehicle to the
taxpayer, but only if such person clearly
discloses to such taxpayer, through the use of
a window sticker attached to the new qualified
fuel-efficient vehicle--
``(I) the amount of the refundable
credit described in subparagraph (A)
with respect to such vehicle, and
``(II) a notification that the
taxpayer will not be eligible for any
credit under section 30D with respect
to such vehicle unless the taxpayer
elects not to have this section apply
with respect to such vehicle.
``(ii) Certification.--A transferee of a
refundable credit described in subparagraph (A)
may not claim such credit unless such claim is
accompanied by a certification to the Secretary
that the transferee reduced the price the
taxpayer paid for the new qualified fuel-
efficient motor vehicle by the entire amount of
such refundable credit.
``(iii) Consent required for revocation.--
Any transfer under clause (i) may be revoked
only with the consent of the Secretary.
``(iv) Regulations.--The Secretary may
prescribe such regulations as necessary to
ensure that any refundable credit described in
clause (i) is claimed once and not
retransferred by a transferee.
``(d) Other Definitions.--For purposes of this section--
``(1) Fuel-economy rating.--The term `fuel-economy rating'
means, with respect to any motor vehicle, the combined fuel-
economy rating for such motor vehicle, expressed in gallons per
mile, determined in accordance with section 32904 of title 49,
United States Code.
``(2) Model year.--The term `model year' has the meaning
given such term under section 32901(a) of such title 49.
``(3) 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.
``(4) Reference fuel-economy rating.--The term `reference
fuel-economy rating' means, with respect to any motor vehicle,
the fuel economy standard for such motor vehicle, expressed in
gallons per mile, calculated by applying the relevant vehicle
attributes to the mathematical function published pursuant to
section 32902(b)(3)(A) of title 49, United States Code.
``(5) 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.).
``(e) Special Rules.--
``(1) Basis reduction.--For purposes of this subtitle, the
basis of any property for which a credit is allowable under
subsection (a) shall be reduced by the amount of such credit so
allowed (determined without regard to subsection (c)).
``(2) No double benefit.--No other credit shall be
allowable under this chapter for a new qualified fuel-efficient
motor vehicle with respect to which a credit is allowed under
this section.
``(3) Property used by tax-exempt entity.--In the case of a
vehicle whose use is described in paragraph (3) or (4) of
section 50(b) and which is not subject to a lease, the person
who sold such vehicle to the person or entity using such
vehicle shall be treated as the taxpayer that placed such
vehicle in service, but only if such person clearly discloses
to such person or entity in a document the amount of any credit
allowable under subsection (a) with respect to such vehicle
(determined without regard to subsection (c)). For purposes of
subsection (c), property to which this paragraph applies shall
be treated as of a character subject to an allowance for
depreciation.
``(4) Property used outside united states, etc., not
qualified.--No credit shall be allowable under subsection (a)
with respect to any property referred to in section 50(b)(1) or
with respect to the portion of the cost of any property taken
into account under section 179.
``(5) 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).
``(6) 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.
``(7) Interaction with air quality and motor vehicle safety
standards.--A motor vehicle shall not be considered eligible
for a credit under this section unless such vehicle is in
compliance with--
``(A) the applicable provisions of the Clean Air
Act for the applicable make and model year of the
vehicle (or applicable air quality provisions of State
law in the case of a State which has adopted such
provisions under a waiver under section 209(b) of the
Clean Air Act), and
``(B) the motor vehicle safety provisions of
sections 30101 through 30169 of title 49, United States
Code.
``(8) Inflation adjustment.--In the case of any model year
beginning in a calendar year after 2021, each dollar amount in
subsection (a)(3)(B) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the model year begins, determined by substituting
`2020' for `2016' in subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence shall be
rounded to the nearest multiple of $100.
``(f) Regulations.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall promulgate such regulations as necessary to
carry out the provisions of this section.
``(2) Coordination in prescription of certain
regulations.--The Secretary of the Treasury, in 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.''.
(b) Credit Allowed Against Alternative Minimum Tax.--Section
38(c)(4)(B) is amended by redesignating clauses (i) through (xii) as
clauses (ii) through (xiii), respectively, and by inserting before
clause (ii) (as so redesignated) the following new clause:
``(i) the credit determined under section
30E,''.
(c) Display of Credit.--Section 32908(b)(1) of title 49, United
States Code, is amended--
(1) by redesignating subparagraphs (E) and (F) as
subparagraphs (F) and (G), and
(2) by inserting after subparagraph (D) the following new
subparagraph:
``(E) the amount of the fuel-efficient motor
vehicle credit allowable with respect to the sale of
the automobile under section 30E of the Internal
Revenue Code of 1986 (26 U.S.C. 30E).''.
(d) Conforming Amendments.--
(1) Section 38(b) is amended by striking ``plus'' at the
end of paragraph (34), by striking the period at the end of
paragraph (35) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(36) the portion of the fuel performance rebate to which
section 30E(c)(1) applies.''.
(2) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (37), by striking the period at the end of
paragraph (38) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(39) to the extent provided in section 30E(e)(1).''.
(3) Section 6501(m) is amended by inserting ``30E(e)(6),''
after ``30D(e)(4),''.
(4) The table of section for subpart C of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 30D the following new item:
``Sec. 30E. Fuel performance rebate.''.
SEC. 3. FUEL PERFORMANCE FEE.
(a) In General.--Section 4064 is amended to read as follows:
``SEC. 4064. FUEL PERFORMANCE FEE.
``(a) Imposition of Tax.--
``(1) In general.--There is hereby imposed on the sale by
the manufacturer of each fuel guzzler motor vehicle a tax equal
to the product of--
``(A) the absolute value of the difference between
the fuel-economy rating and the reference fuel-economy
rating for such motor vehicle for the model year,
``(B) 100, and
``(C) the applicable amount.
``(2) Applicable amount.--For purposes of paragraph (1)(C),
the applicable amount is equal to--
``(A) $1,500,
``(B) $2,500, if the fuel-economy rating for such
motor vehicle is more than 50 percent less efficient
than the reference fuel-economy rating for such motor
vehicle as determined under paragraph (1)(A), or
``(C) $3,500, if the fuel-economy rating for such
motor vehicle is more than 75 percent less efficient
than the reference fuel-economy rating for such motor
vehicle as determined under paragraph (1)(A).
``(b) Fuel Guzzler Motor Vehicle.--For purposes of this section--
``(1) In general.--The term `fuel guzzler motor vehicle'
means a passenger automobile or light truck--
``(A) which is treated as a motor vehicle for
purposes of title II of the Clean Air Act,
``(B) which achieves a fuel-economy rating that is
less efficient than the reference fuel-economy rating
for such motor vehicle for the model year,
``(C) which has a gross vehicle weight rating of
not more than 8,500 pounds, and
``(D) which is made by a manufacturer beginning
with model year 2023.
``(2) Exception for emergency vehicles.--The term `fuel
guzzler motor vehicle' does not include any vehicle sold for
use and used--
``(A) as an ambulance or combination ambulance-
hearse,
``(B) by the United States or by a State or local
government for police or other law enforcement
purposes, or
``(C) for other emergency uses prescribed by the
Secretary by regulations.
``(c) Other Definitions.--For purposes of this section--
``(1) Fuel-economy rating.--The term `fuel-economy rating'
means, with respect to any motor vehicle, the combined fuel-
economy rating for such motor vehicle, expressed in gallons per
mile, determined in accordance with section 32904 of title 49,
United States Code.
``(2) Model year.--The term `model year' has the meaning
given such term under section 32901(a) of such title 49.
``(3) 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.
``(4) Reference fuel-economy rating.--The term `reference
fuel-economy rating' means, with respect to any motor vehicle,
the fuel economy standard for such motor vehicle, expressed in
gallons per mile, calculated by applying the relevant vehicle
attributes to the mathematical function published pursuant to
section 32902(b)(3)(A) of title 49, United States Code.
``(5) 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.).
``(d) Inflation Adjustment.--In the case of any model year
beginning in a calendar year after 2023, each dollar amount in
subsection (a)(2) shall be increased by an amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the model year
begins, determined by substituting `2022' for `2016' in
subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence shall be rounded
to the nearest multiple of $100.''.
(b) Conforming Amendments.--
(1) The heading for part I of subchapter A of chapter 32 is
amended by striking ``gas'' and inserting ``fuel''.
(2) The table of parts for subchapter A of chapter 32 is
amended by striking ``Gas'' in the item relating to part I and
inserting ``Fuel''.
(3) The table of sections for part I of subchapter A of
chapter 32 is amended by striking ``Gas'' in the item relating
to section 4064 and inserting ``Fuel''.
(4) The heading for subsection (d) of section 1016 is
amended by striking ``Gas Guzzler Tax'' and inserting ``Fuel
Performance Fee''.
(5) The heading for subsection (e) of section 4217 is
amended by striking ``Gas Guzzler Tax'' and inserting ``Fuel
Performance Fee''.
(6) The heading for subparagraph (B) of section 4217(e)(3)
is amended by striking ``gas guzzler tax'' and inserting ``fuel
performance fee''.
(7) Section 4217(e) is amended by striking ``gas guzzler
tax'' each place it appears and inserting ``fuel performance
fee''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Select Revenue Measures.
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