S AMDT 1093

S 1093 IS

To amend the Internal Revenue Code of 1986 to provide tax incentives for increasing motor vehicle fuel efficiency, and for other purposes.

May 20, 2009

Mr. WYDEN introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code of 1986 to provide tax incentives for increasing motor vehicle fuel efficiency, 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 ‘Oil Independence, Limiting Subsidies, and Accelerating Vehicle Efficiency Act’ or the ‘OILSAVE Act’.

(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-EFFICIENT MOTOR VEHICLE CREDIT.

‘(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--

‘(A) in the case of any vehicle manufactured in model year 2011, the applicable amount determined in accordance with the table contained in paragraph (3), and

‘(B) in the case of any passenger automobile or non-passenger automobile manufactured in a model year after 2011, the lesser of--

‘(i) the sum of--

‘(I) $900, plus

‘(II) $100 for each whole mile per gallon in excess of 110 percent of the respective industry-wide average fuel economy standard for such model year for all passenger automobiles and all non-passenger automobiles, or

‘(ii) $2,500.

‘(3) APPLICABLE AMOUNT- For purposes of paragraph (2)(A), the applicable amount shall be determined as follows:

‘(A) In the case of a passenger automobile which achieves:

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           ‘The fuel economy of: The applicable amount is: 

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At least 33.2 but less than 34.2                      $900 

At least 34.2 but less than 35.2                    $1,000 

At least 35.2 but less than 36.2                    $1,100 

At least 36.2 but less than 37.2                    $1,200 

At least 37.2 but less than 38.2                    $1,300 

At least 38.2 but less than 39.2                    $1,400 

At least 39.2 but less than 40.2                    $1,500 

At least 40.2 but less than 41.2                    $1,600 

At least 41.2 but less than 42.2                    $1,700 

At least 42.2 but less than 43.2                    $1,800 

At least 43.2 but less than 44.2                    $1,900 

At least 44.2 but less than 45.2                    $2,000 

At least 45.2 but less than 46.2                    $2,100 

At least 46.2 but less than 47.2                    $2,200 

At least 47.2 but less than 48.2                    $2,300 

At least 48.2 but less than 49.2                    $2,400 

                   At least 49.2                   $2,500. 

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‘(B) In the case of a non-passenger automobile which achieves:

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           ‘The fuel economy of: The applicable amount is: 

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At least 26.5 but less than 27.5                      $900 

At least 27.5 but less than 28.5                    $1,000 

At least 28.5 but less than 29.5                    $1,100 

At least 29.5 but less than 30.5                    $1,200 

At least 30.5 but less than 31.5                    $1,300 

At least 31.5 but less than 32.5                    $1,400 

At least 32.5 but less than 33.5                    $1,500 

At least 33.5 but less than 34.5                    $1,600 

At least 34.5 but less than 35.5                    $1,700 

At least 35.5 but less than 36.5                    $1,800 

At least 36.5 but less than 37.5                    $1,900 

At least 37.5 but less than 38.5                    $2,000 

At least 38.5 but less than 39.5                    $2,100 

At least 39.5 but less than 40.5                    $2,200 

At least 40.5 but less than 41.5                    $2,300 

At least 41.5 but less than 42.5                    $2,400 

                   At least 42.5                   $2,500. 

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‘(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 non-passenger automobile--

‘(1) which is treated as a motor vehicle for purposes of title II of the Clean Air Act,

‘(2) which--

‘(A) in the case of a passenger automobile, achieves a fuel economy of not less than 110 percent of the industry-wide average fuel economy standard for the model year for all passenger automobiles, and

‘(B) in the case of a non-passenger automobile, achieves a fuel economy of not less than 110 percent of the industry-wide average fuel economy standard for the model year for all non-passenger automobiles,

‘(3) which has a gross vehicle weight rating of less than 14,000 pounds,

‘(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 during the period beginning with model year 2011 and ending with model year 2020.

‘(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) 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 A for such taxable year.

‘(B) LIMITATION BASED ON AMOUNT OF TAX- In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of--

‘(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

‘(ii) the sum of the credits allowable under subpart A (other than this section and sections 23, 25D, 30, and 30D) and section 27 for the taxable year.

‘(d) Other Definitions- For purposes of this section--

‘(1) MANUFACTURER- The term ‘manufacturer’ has the meaning given such term 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.).

‘(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) FUEL ECONOMY; AVERAGE FUEL ECONOMY STANDARD- The terms ‘fuel economy’ and ‘average fuel economy standard’ have the meanings given such terms under section 32901 of such title 49.

‘(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.

‘(2) NO DOUBLE BENEFIT- The amount of any deduction or other credit allowable under this chapter for a new qualified fuel-efficient motor vehicle shall be reduced by the amount of credit allowed under subsection (a) for such vehicle.

‘(3) CREDIT MAY BE TRANSFERRED-

‘(A) IN GENERAL- A taxpayer may, in connection with the purchase of a new qualified fuel-efficient motor vehicle, transfer any credit allowable under subsection (a) to any person who is in the trade or business of selling new qualified fuel-efficient motor vehicles, 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 any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)), and

‘(ii) a notification that the taxpayer will not be eligible for any credit under section 30, 30B, or 30D with respect to such vehicle unless the taxpayer elects not to have this section apply with respect to such vehicle.

‘(B) CONSENT REQUIRED FOR REVOCATION- Any transfer under subparagraph (A) may be revoked only with the consent of the Secretary.

‘(C) REGULATIONS- The Secretary may prescribe such regulations as necessary to ensure that any credit described in subparagraph (A) is claimed once and not retransferred by a transferee.

‘(4) PROPERTY USED OUTSIDE UNITED STATES NOT QUALIFIED- No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1).

‘(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.

‘(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 provision 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.

‘(f) Termination- This section shall not apply to property placed in service after December 31, 2020.’.

(b) Credit Allowed Against Alternative Minimum Tax-

(1) BUSINESS CREDIT- Section 38(c)(4)(B) is amended by redesignating clauses (i) through (viii) as clauses (ii) through (ix), respectively, and by inserting before clause (ii) (as so redesignated) the following new clause:

‘(i) the credit determined under section 30E,’.

(2) PERSONAL CREDIT-

(A) Section 24(b)(3)(B) is amended by striking ‘and 30D’ and inserting ‘30D, and 30E’.

(B) Section 25(e)(1)(C)(ii) is amended by inserting ‘30E,’ after ‘30D,’.

(C) Section 25B(g)(2) is amended by striking ‘and 30D’ and inserting ‘30D, and 30E’.

(D) Section 26(a)(1) is amended by striking ‘ and 30D’ and inserting ‘30D, and 30E’.

(E) Section 904(i) is amended by striking ‘and 30D’ and inserting ‘30D, and 30E’.

(c) Conforming Amendments-

(1) Section 38(a) 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 new qualified fuel-efficient motor vehicle credit to which section 30E(c)(1) applies.’.

(2) Section 1016(a) is amended by striking ‘and’ at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting ‘, and’, and by adding at the end the following new paragraph:

‘(38) 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-efficient motor vehicle credit.’.

(d) Effective Date- The amendments made by this section shall apply to property placed in service after December 31, 2009.

SEC. 3. CREDIT FOR FUEL SAVINGS COMPONENTS FOR CERTAIN VEHICLES.