,i #aafth ,,congress #ast ,session ,h4 ,r4 #ecic ,,in ,,the ,,house ,,of ,,representatives ,december #aa1 #bjai,ms4 ,speier 7for herself1 ,ms4 ,norton1 ,mrs4 ,torres of ,california1 ,mr4 ,takano1 ,mr4 ,pocan1 ,mr4 ,ryan1 ,mrs4 ,watson ,coleman1 ,ms4 ,mc,collum1 ,mr4 ,vargas1 ,ms4 ,meng1 ,ms4 ,roybal-,allard1 ,mr4 ,huffman1 ,mr4 ,norcross1 ,mr4 ,garamendi1 ,mr4 ,quigley1 ,mr4 ,de,saulnier1 ,ms4 ,kaptur1 ,mr4 ,sires1 ,mr4 ,mc,nerney1 ,ms4 ,matsui1 ,mr4 ,crist1 ,mr4 ,lowenthal1 ,mr4 ,cuellar1 ,ms4 ,tlaib1 ,mrs4 ,dingell1 ,ms4 ,brownley of ,california1 ,mr4 ,rouda1 ,ms4 ,moore1 ,mr4 ,grijalva1 ,mr4 ,cleaver1 and ,mr4 ,crdenas7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to revise the incentives for electric vehicles1 and for other purposes4 #a4 ,short title2 findings 7a7 ,short title ,this ,act may be cited as the ,affordable ,american-made ,automobile ,act4 7b7 ,findings ,congress finds the following3 7#a7 ,the automobile industry is vital to the national economy and to national security4 ,it employs millions of ,americans and develops new technologies with widespread civilian and military application4 7#b7 ,the global automobile industry is already in the midst of an historic transformation to electric vehicle technology4 ,this transition has profound implications for all ,americans4 7#c7 ,in critical measures of the global competition in the electric vehicle industry1 the ,united ,states is behind ,china and is projected to fall further behind4 ,the ,united ,states is behind in total vehicle sales1 behind in the market share of new car sales1 behind in investment1 behind in battery manufacturing capacity1 and behind in manufacturing capacity4 ,the ,united ,states lags ,china to a great extent1 but the ,united ,states is in third place in this competition1 behind the ,european ,union4 7#d7 ,china sells half the electric vehicles sold in the world4 ,in addition1 ,china's percent of new car market share of electric vehicles is twice that of the ,united ,states4 ,in a few short years1 the ,chinese new market share of electric vehicles is expected to be triple the new market share in the ,united ,states4 7#e7 ,china is predicted to control about #ge percent of the global battery capacity4 7#f7 ,global investment in electric vehicles is expected to reach #cjj billion or even more2 half of which is intended for ,china and only #aj percent for the ,united ,states4 7#g7 ,there are #ag ,chinese automobile manufacturers that have announced or undertaken electric vehicle investment4 ,even assuming some consolidation of the ,chinese industry1 it will dwarf the number of manufacturers headquartered in the ,united ,states which is currently #d4 7#h7 ,china supports its electric vehicle industry through a wide array of practices including state-owned enterprises1 direct subsidies1 special access to financing1 government guarantees of financing1 exemptions from various regulatory requirements1 public purchasing1 favoritism for ,chinese firms1 restrictions on market entry to foreign competition1 and regulatory mandates4 7#i7 ,chinese domination of the electric vehicle industry will inevitably erode ,united ,states automobile manufacturing and the ,united ,states supply chain potentially resulting in the loss of hundreds of thousands of jobs4 ,employment in the innovation and research side of the industry has already begun a migration outside the ,united ,states4 7#aj7 ,united ,states communities are also currently suffering from extreme events of flood1 wind1 and fire1 as well as health-threatening air pollution1 all of which are related to a warming planet4 ,electric vehicles will play a critical role in reducing the pollution that contributes to these tragedies4 7#aa7 ,without changes to public policy1 the automotive industry in the ,united ,states will face aggressive competition from foreign companies1 chiefly located in ,china1 and will fight a competitive battle on grossly unequal terms due to foreign government policies that unfairly favor overseas manufacturers4 7#ab7 ,such an unfair fight is unwinnable by private industry alone and is therefore a national priority for the ,government of the ,united ,states to enter on behalf of every current and future ,american4 7#ac7 ,the ,united ,states faces a moment of critical choice4 ,it either makes the investments necessary to achieve global competitive leadership in this key industry1 or it will face profound and dire consequences to its economy and its national security4 7#ad7 ,the ,united ,states needs to stimulate demand for electric vehicles from middle class consumers4 ,tax incentives for the development of convenient fast charging infrastructure are essential4 ,investment is needed to support increased electric vehicle and battery manufacturing capacity4 #b4 ,expansion of tax credit for electric drive motor vehicles 7a7 ,application to new and used battery electric motor vehicles 7#a7 ,in general ,section #cj;,d7a7 of the ,internal ,revenue ,code of #aihf is amended by striking new qualified plug-in electric drive motor vehicle and inserting credit eligible electric motor vehicle4 7#b7 ,per vehicle dollar limitation ,section #cj;,d7b7 of such ,code is amended-- 7,a7 in paragraph 7#a7-- 7i7 by striking paragraphs 7#b7 and 7#c7 and inserting paragraphs 7#d7 and 7#e72 and 7ii7 by striking ,in general in the heading and inserting ,new qualified plug-in electric drive motor vehicles2 7,b7 by redesignating paragraphs 7#b7 and 7#c7 as paragraphs 7#d7 and 7#e71 respectively1 and inserting after paragraph 7#a7 the following new paragraphs3 7#b7 ,new battery electric motor vehicles 7,a7 ,in general ,the amount determined under this subsection with respect to any new battery electric motor vehicle is-- 7i7 #ab1jjj 7#ae1jjj in the case of new battery electric motor vehicles acquired after ,december #ca1 #bjah1 and before the date which is #e years after the date of the enactment of the ,affordable ,american-made ,automobile ,act7 if the price of such vehicle is not more than #ce1jjj1 and 7ii7 #g1ejj if the price of such vehicle is greater than #ce1jjj4 7,b7 ,determination of price ,for purposes of this paragraph1 the term price means-- 7i7 except as provided in clause 7ii71 the final sales price agreed upon by the taxpayer and the person from whom the taxpayer acquires such vehicle 7determined without regard to any taxes or fees imposed by any ,state or local government71 and 7ii7 in the case of a lease1 the price of the vehicle stated in the lease agreement between the lessor and lessee 7as so determined74 7#c7 ,used battery electric motor vehicles ,the amount determined under this subsection with respect to any used battery electric motor vehicle is-- 7,a7 #e1jjj if the taxpayer trades in a vehicle that is powered by an internal combustion engine in connection with the taxpayer's acquisition of such used battery electric motor vehicle1 and 7,b7 #j in any other case4 2 and 7,c7 in paragraph 7#e7 7as so redesignated71 by striking a vehicle and inserting a new qualified plug-in electric drive motor vehicle4 7#c7 ,credit eligible electric motor vehicle ,section #cj;,d7d7 of such ,code is amended-- 7,a7 by redesignating paragraphs 7#b71 7#c71 and 7#d7 as paragraphs 7#e71 7#f71 and 7#g71 respectively2 7,b7 by redesignating paragraph 7#a7 as paragraph 7#b72 7,c7 in paragraph 7#b7 7as so redesignated7-- 7i7 in subparagraph 7,f71 by inserting utilizes an internal combustion engine and before is propelled2 and 7ii7 by striking ,in general in the heading and inserting ,new qualified plug-in electric drive motor vehicle2 7,d7 by striking all that precedes paragraph 7#b7 7as so redesignated7 and inserting the following3 7d7 ,credit eligible motor vehicle ,for purposes of this section-- 7#a7 ,credit eligible motor vehicle ,the term credit eligible motor vehicle means-- 7,a7 a new qualified plug-in electric drive motor vehicle1 7,b7 a new battery electric motor vehicle1 and 7,c7 a used battery electric motor vehicle4 2 and 7,e7 by inserting after paragraph 7#b7 7as so redesignated7 the following new paragraphs3 7#c7 ,new battery electric motor vehicle ,the term new battery electric motor vehicle means a motor vehicle-- 7,a7 which meets the requirements of subparagraphs 7,a7 through 7,e7 of paragraph 7#b71 7,b7 which is powered by a battery electric drive train1 7,c7 which produces zero exhaust emissions of any criteria pollutant 7including any precursor pollutant7 or greenhouse gas 7other than emissions from air conditioning systems7 under any possible operational modes or conditions1 7,d7 the battery cell1 battery pack1 battery cooling system1 and battery management system of which are all manufactured in the ,united ,states1 and 7,e7 the assembly of which is in the ,united ,states4 7#d7 ,used battery electric motor vehicle 7,a7 ,in general ,the term used battery electric motor vehicle means a motor vehicle-- 7i7 the original use of which commences with a person other than the taxpayer1 7ii7 which meets the requirements of subparagraphs 7,b7 through 7,e7 of paragraph 7#b71 and 7iii7 which meets the requirements of subparagraphs 7,b7 through 7,e7 of paragraph 7#c74 7,b7 ,only #a credit per vehicle ,no credit shall be allowed under this section with respect to any used battery electric motor vehicle placed in service by the taxpayer if a credit is allowable under this section by reason of such vehicle being placed in service at any time prior to the time that such vehicle is placed in service by the taxpayer 7other than a credit which is so allowable by reason of such vehicle being a new battery electric motor vehicle74 4 7b7 ,carryover of personal credit ,section #cj;,d7c77#b7 of such ,code is amended-- 7#a7 by striking ,for purposes and inserting the following3 7,a7 ,in general ,for purposes 2 and 7#b7 by adding at the end the following new subparagraph3 7,b7 ,carryback and carryforward of unused credits 7i7 ,in general ,if the credit described in subparagraph 7,a7 exceeds the limitation imposed by section #bf7;a7 for the taxable year reduced by the sum of the credits allowable under subpart ,a 7determined without regard to the credit described in subparagraph 7,a771 such excess shall be-- 7,i7 carried back to the taxable year preceding the taxable year in which such amount arose1 and 7,,ii7 carried forward to the #e taxable years following the taxable year in which such amount arose4 7ii7 ,limitation ,for purposes of clause 7i71 the amount of credit carried back or forward under such clause-- 7,i7 shall be taken into account as a credit described in subparagraph 7,a7 for the taxable year to which carried 7except1 in the case of a carryback1 such amount shall not be taken into account for purposes of applying clause 7i7 to such taxable year71 and 7,,ii7 such amounts shall be treated as used on a first-in1 first-out basis1 determined on the basis of the taxable year in which such amount arose4 4 7c7 ,assignment of credit to financing entity ,section #cj;,d7f7 of such ,code is amended by adding at the end the following new paragraph3 7#h7 ,credit may be assigned to financing entity 7,a7 ,in general ,in the case of a credit determined under subsection 7a7 with respect to a new qualified plug-in electric drive motor vehicle or a new battery electric motor vehicle1 the taxpayer to whom such credit would 7but for this paragraph7 be allowed under subsection 7a7 for any taxable year may assign such credit to the person who financed the purchase 7or lease of at least #b years7 of such vehicle4 ,any person to whom such credit is assigned under the preceding sentence shall be treated for purposes of this title as the taxpayer who placed such vehicle in service4 7,b7 ,disclosure requirement ,subparagraph 7,a7 shall not apply with respect to any vehicle unless the person to whom the credit is assigned clearly discloses in writing to the taxpayer the amount of the credit allowable under subsection 7a7 with respect to such vehicle 7determined without regard to subsection 7c774 4 7d7 ,modification of termination of credit 7#a7 ,repeal of manufacturers limitation ,section #cj;,d of such ,code is amended by striking subsection 7e74 7#b7 ,termination of credit ,section #cj;,d of such ,code is amended by adding at the end the following new subsection3 7h7 ,termination ,this section shall not apply to any vehicle placed in service after ,december #ca1 #bjcj4 4 7e7 ,effective dates 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendments made by this section shall apply to vehicles acquired after ,december #ca1 #bjah4 7#b7 ,carryforward ,the amendments made by subsection 7b7 shall apply to vehicles acquired after the date of the enactment of this ,act4 7#c7 ,assignment ,the amendment made by subsection 7c7 shall apply to vehicles acquired after the date which is #fj days after the date of the enactment of this ,act4 #c4 ,alternative fuel vehicle refueling property credit extended for electric vehicle charging stations 7a7 ,extension ,section #cj;,c7g7 of the ,internal ,revenue ,code of #aihf is amended by striking ,december #ca1 #bjag and inserting ,december #ca1 #bjcj4 7b7 ,repeal of limitation ,section #cj;,c of such ,code is amended by striking subsection 7b74 7c7 ,application to electric vehicle charging stations 7#a7 ,in general ,section #cj;,c7a7 of such ,code is amended by striking qualified alternative fuel vehicle refueling property and inserting electric vehicle charging station4 7#b7 ,electric vehicle charging station defined ,section #cj;,c7c7 of such ,code is amended to read as follows3 7c7 ,electric vehicle charging station ,for purposes of this section1 the term electric vehicle charging station means a station designed for recharging an electric battery of a credit eligible motor vehicle 7as defined in section #cj;,d7d71 but determined without regard to the requirements of subparagraphs 7,d7 and 7,e7 of paragraph 7#c7 thereof74 4 7d7 ,conforming amendments 7#a7 ,section #cj;,c7e77#b7 of such ,code is amended by striking qualified alternative fuel vehicle refueling property and inserting electric vehicle charging station4 7#b7 ,section #cj;,c7e7 of such ,code is amended by striking paragraph 7#f7 and redesignating paragraph 7#g7 as paragraph 7#f74 7#c7 ,section #ch7;b77#be7 of such ,code is amended by striking alternative fuel vehicle refueling property credit and inserting electric vehicle charging station credit4 7#d7 ,the heading of section #cj;,c of such ,code 7and the item relating to such section in the table of sections for subpart ,b of part ,,iv of subchapter ,a of chapter #a of such ,code7 is amended by striking ,alternative fuel vehicle refueling property and inserting ,electric vehicle recharging station4 7e7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjah4 #d4 ,private activity bonds related to electric vehicle manufacturing 7a7 ,in general ,section #adb7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of paragraph 7#ad71 by striking the period at the end of paragraph 7#ae7 and inserting 1 or1 and by adding at the end the following new paragraph3 7#af7 a qualified battery electric motor vehicle manufacturing facility or a qualified electric vehicle battery manufacturing facility4 4 7b7 ,facilities defined ,section #adb of such ,code is amended by adding at the end the following new subsection3 7n7 ,qualified battery electric motor vehicle manufacturing and qualified electric vehicle battery manufacturing facilities 7#a7 ,in general ,for purposes of subsection 7a77#af7-- 7,a7 the term qualified battery electric motor vehicle manufacturing facility means a battery electric motor vehicle manufacturing facility designated by the ,secretary under this subsection1 and 7,b7 the term qualified electric vehicle battery manufacturing facility means an electric vehicle battery manufacturing facility designated by the ,secretary under this subsection4 7#b7 ,battery electric motor vehicle manufacturing facility ,for purposes of this subsection-- 7,a7 ,in general ,the term battery electric motor vehicle manufacturing facility means a facility for manufacturing battery electric motor vehicles4 7,b7 ,battery electric motor vehicles ,the term battery electric motor vehicle means an automobile which is powered by a battery electric drive train and which produces zero exhaust emissions of any criteria pollutant 7including any precursor pollutant7 or greenhouse gas 7other than emissions from air conditioning systems7 under any possible operational modes or conditions4 7#c7 ,electric vehicle battery manufacturing facility ,the term electric vehicle battery manufacturing facility means a facility for manufacturing batteries for use in battery electric motor vehicles4 7#d7 ,aggregate limitation on designations 7,a7 ,in general ,an issue shall not be treated as an issue described in subsection 7a77#af7 if the aggregate face amount of bonds issued by the ,state or local government pursuant thereto for any facility 7when added to the aggregate face amount of bonds previously so issued for such facility7 exceeds the amount allocated to such facility by the ,secretary under this subsection4 7,b7 ,aggregate limitation ,the ,secretary many not allocate more than #ae1jjj1jjj1jjj to facilities designated under this subsection4 7#e7 ,standards for designation ,the ,secretary shall not designate a facility for purposes of this subsection unless-- 7,a7 an application has been submitted to the ,secretary with respect to such facility which meets the requirements of paragraph 7#g71 7,b7 such facility is located in the ,united ,states1 7,c7 such facility has been nominated by a ,state or local government during the #ahj-;day period ending with the date of such application1 and 7,d7 such ,state or local government provides written assurances of the accuracy of the application with respect to such facility4 7#f7 ,priority for retooling of existing facilities ,the ,secretary shall give priority in making designations and allocations under this subsection to the retooling of existing manufacturing facilities1 especially the oldest facilities or facilities that have been in existence for at least #bj years 7whether or not such facilities are idle74 7#g7 ,conditional designations ,the ,secretary may approve a designation under this subsection subject to such conditions as the ,secretary may determine are necessary to satisfy the purposes of this subsection or to protect the national security interests of the ,united ,states4 7#h7 ,application ,an application with respect to a facility for designation under this subsection shall include-- 7,a7 a written agreement that-- 7i7 all laborers and mechanics employed by contractors or subcontractors during construction1 alteration1 or repair that is financed1 in whole or in part1 by the proceeds of the issue shall be paid wages at rates not less than those prevailing on similar construction in the locality1 as determined by the ,secretary of ,labor in accordance with sections #cada-cadd1 #cadf1 and #cadg of title #dj1 ,united ,states ,code1 and 7ii7 the ,secretary of ,labor shall1 with respect to the labor standards described in clause 7i71 have the authority and functions set forth in ,reorganization ,plan ,numbered #ad of #aiej 7#e ,u4,s4,c4 ,app47 and section #cade of title #dj1 ,united ,states ,code1 7,b7 evidence satisfactory to the ,secretary that the project will improve the global competitive position of the ,united ,states in the electric vehicle industry1 will stimulate the regional economy at the facility location1 and will provide quality jobs and labor standards consistent with the ,united ,states automobile industry1 and 7,c7 a demonstration that the facility includes the use of energy efficiency1 renewable energy1 and other sustainable design features to the extent feasible4 7#i7 ,time limit on expenditure of bond proceeds ,an issue shall not be treated as an issue described in subsection 7a77#af7 unless at least #ie percent of the net proceeds of the issue are expended for the facility designated under this subsection within the #e-year period beginning on the date of issuance4 ,if at least #ie percent of such net proceeds is not so expended within such #e-year period1 an issue shall be treated as continuing to be described in subsection 7a77#af7 if the issuer uses all remaining proceeds of the issue to redeem bonds of the issue within #ij days after the end of such #e-year period4 ,the ,secretary1 at the request of the issuer1 may extend such #e-year period if the issuer establishes that the failure to make such expenditures is due to circumstances beyond the control of the issuer4 4 7c7 ,effective date ,the amendments made by this section shall apply to bonds issued after the date of the enactment of this ,act4