H.R. 5656 — Michael F. Donoughe Tax Credit for Off Road Electric Vehicles Act

Michael F. Donoughe Tax Credit for Off Road Electric Vehicles Act

This bill expands the clean vehicle tax credit to include new qualified off-road plug-in electric vehicles. The amount of the tax credit allowed for a new qualified off-road plug-in electric vehicle is 10% of the cost of the vehicle or $2,500, whichever is lower.

The bill defines a new qualified off-road plug-in electric vehicle as any vehicle that

is acquired new and for use by the taxpayer;
is made by a qualified manufacturer;
is powered by an electric motor that draws electricity from a battery with a capacity of at least six kilowatt hours;
has final assembly occurring in North America;
has a dry weight of less than 3,500 pounds;
has three or more wheels;
has one or more seats;
is manufactured primarily for off-road use;
is designed for use on rough terrain and, except in the case of a vehicle designed to operate on land and water, is not designed to operate on rails, in the air, or in or on the water; and
is capable of reaching a speed of 40 miles per hour.

Under current law, a qualified manufacturer is any manufacturer that has a written agreement with the Internal Revenue Service and submits reports containing information about each eligible clean vehicle.

Finally, the bill allows the tax credit for a new qualified off-road plug-in electric vehicle to be transferred from the taxpayer to an eligible entity (e.g., vehicle dealer) in exchange for a financial benefit (e.g., rebate).

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5656 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 5656

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
                new off-road plug-in electric vehicles.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 21, 2023

 Mr. Phillips 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 a tax credit for 
                new off-road plug-in electric 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 ``Michael F. Donoughe Tax Credit for 
Off Road Electric Vehicles Act''.

SEC. 2. CREDIT FOR NEW OFF-ROAD PLUG-IN ELECTRIC VEHICLES.

    (a) In General.--Section 30D of the Internal Revenue Code of 1986 
is amended by redesignating subsection (h) as subsection (i), and by 
inserting after subsection (g) the following new subsection:
    ``(h) Credit Allowed for New Off-Road Plug-In Electric Vehicles.--
            ``(1) In general.--In the case of any new qualified off-
        road plug-in electric vehicle--
                    ``(A) 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 the applicable amount with 
                respect to each such new qualified off-road plug-in 
                electric vehicle placed in service by the taxpayer 
                during the taxable year, and
                    ``(B) the amount of the credit allowed under 
                subparagraph (A) shall be treated as a credit allowed 
                under subsection (a).
            ``(2) Applicable amount.--For purposes of paragraph (1), 
        the applicable amount is an amount equal to the lesser of--
                    ``(A) 10 percent of the cost of the new qualified 
                off-road plug-in electric vehicle, or
                    ``(B) $2,500.
            ``(3) New qualified off-road plug-in electric vehicle.--For 
        purposes of this subsection, the term `new qualified off-road 
        plug-in electric vehicle' means any vehicle which--
                    ``(A) meets the requirements of subparagraphs (A), 
                (B), (C), (F), (G), and (H) of subsection (d)(1) 
                (determined by substituting `6 kilowatt hours' for `7 
                kilowatt hours' in subparagraph (F)(i)),
                    ``(B) has a dry weight of less than 3,500 pounds,
                    ``(C) has 3 or more wheels and 1 or more seats,
                    ``(D) is manufactured primarily for use on other 
                than public streets, roads, and highways,
                    ``(E) is designed to be used primarily on rough 
                terrain,
                    ``(F) is capable of achieving a speed of 40 miles 
                per hour, and
                    ``(G) except in the case of a vehicle designed to 
                operate on land and water, is not designed to operate 
                on rails, in the air, or in or on the water.''.
    (b) One Credit Per Vehicle.--Section 30D(f)(8) of such Code is 
amended by striking ``described in subsection (a)'' and inserting 
``under this section''.
    (c) Transfer of Credit.--Section 30D(g)(1) of such Code is amended 
by inserting ``or new qualified off-road plug-in electric vehicle'' 
after ``new clean vehicle''.
    (d) Effective Date.--The amendments made by this section shall 
apply to vehicles acquired after December 31, 2023.
                                 <all>

Michael F. Donoughe Tax Credit for Off Road Electric Vehicles Act

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