,i #aafth ,,congress #b;d ,session ,h4 ,r4 #ghfb ,,in ,,the ,,house ,,of ,,representatives ,july #cj1 #bjbj,mr4 ,casten of ,illinois introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,energy and ,commerce1 for a period to be subsequently determined by the ,speaker1 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 #aihf to provide tax incentives and fees for increasing motor vehicle fuel economy1 and for other purposes4 #a4 ,short title2 amendment of #aihf ,code 7a7 ,short title ,this ,act may be cited as the ,efficient ,vehicle ,leadership ,act of #bjai4 7b7 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 #b4 ,tax credit for fuel-efficient motor vehicles 7a7 ,in general ,subpart ,b of part ,,iv of subchapter ,a of chapter #a 7relating to other credits7 is amended by inserting after section #cj;,d the following new section3 #cj;,e4 ,fuel performance rebate 7a7 ,allowance of credit 7#a7 ,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 7#b7 with respect to any new qualified fuel-efficient motor vehicle placed in service by the taxpayer during the taxable year4 7#b7 ,credit amount ,with respect to each new qualified fuel-efficient motor vehicle1 the amount determined under this paragraph shall be equal to the product of-- 7,a7 the absolute value of the difference between the fuel-economy rating and the reference fuel-economy rating for such motor vehicle for the model year1 7,b7 #ajj1 and 7,c7 the applicable amount4 7#c7 ,applicable amount ,for purposes of paragraph 7#b77;,c71 the applicable amount is equal to-- 7,a7 in the case of model year #bjba-- 7i7 #a1jjj1 or 7ii7 #b1jjj1 if the fuel-economy rating for such motor vehicle is at least #ej percent more efficient than the reference fuel-economy rating for such motor vehicle as determined under paragraph 7#b77;,a71 and 7,b7 in the case of any succeeding model year-- 7i7 #a1ejj1 7ii7 #b1ejj1 if the fuel-economy rating for such motor vehicle is at least #ej percent more efficient than the reference fuel-economy rating for such motor vehicle as determined under paragraph 7#b77;,a71 or 7iii7 #c1ejj1 if the fuel-economy rating for such motor vehicle is at least #ge percent more efficient than the reference fuel-economy rating for such motor vehicle as determined under paragraph 7#b77;,a74 7b7 ,new qualified fuel-,efficient motor vehicle ,for purposes of this section1 the term new qualified fuel-efficient motor vehicle means a passenger automobile or light truck-- 7#a7 which is treated as a motor vehicle for purposes of title ,,ii of the ,clean ,air ,act1 7#b7 which achieves a fuel-economy rating that is more efficient than the reference fuel-economy rating for such motor vehicle for the model year1 7#c7 for which standards are prescribed pursuant to section #cbijb of title #di1 ,united ,states ,code1 7#d7 the original use of which commences with the taxpayer1 7#e7 which is acquired for use or lease by the taxpayer and not for resale1 and 7#f7 which is made by a manufacturer beginning with model year #bjba4 7c7 ,application with other credits 7#a7 ,business credit treated as part of general business credit ,so much of the credit which would be allowed under subsection 7a7 for any taxable year 7determined without regard to this subsection7 that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section #ch7;b7 for such taxable year 7and not allowed under subsection 7a774 7#b7 ,refundable personal credit 7,a7 ,in general ,for purposes of this title1 the credit allowed under subsection 7a7 for any taxable year 7determined after application of paragraph 7#a77 shall be treated as a credit allowable under subpart ,c for such taxable year 7and not allowed under subsection 7a774 7,b7 ,refundable credit may be transferred 7i7 ,in general ,a taxpayer may1 in connection with the purchase of a new qualified fuel-efficient motor vehicle1 transfer any refundable credit described in subparagraph 7,a7 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 taxpayer1 but only if such person clearly discloses to such taxpayer1 through the use of a window sticker attached to the new qualified fuel-efficient vehicle-- 7,i7 the amount of the refundable credit described in subparagraph 7,a7 with respect to such vehicle1 and 7,,ii7 a notification that the taxpayer will not be eligible for any credit under section #cj;,d with respect to such vehicle unless the taxpayer elects not to have this section apply with respect to such vehicle4 7ii7 ,certification ,a transferee of a refundable credit described in subparagraph 7,a7 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 credit4 7iii7 ,consent required for revocation ,any transfer under clause 7i7 may be revoked only with the consent of the ,secretary4 7iv7 ,regulations ,the ,secretary may prescribe such regulations as necessary to ensure that any refundable credit described in clause 7i7 is claimed once and not retransferred by a transferee4 7d7 ,other definitions ,for purposes of this section-- 7#a7 ,fuel-economy rating ,the term fuel-economy rating means1 with respect to any motor vehicle1 the combined fuel-economy rating for such motor vehicle1 expressed in gallons per mile1 determined in accordance with section #cbijd of title #di1 ,united ,states ,code4 7#b7 ,model year ,the term model year has the meaning given such term under section #cbija7;a7 of such title #di4 7#c7 ,motor vehicle ,the term motor vehicle means any vehicle which is manufactured primarily for use on public streets1 roads1 and highways 7not including a vehicle operated exclusively on a rail or rails7 and which has at least #d wheels4 7#d7 ,reference fuel-economy rating ,the term reference fuel-economy rating means1 with respect to any motor vehicle1 the fuel economy standard for such motor vehicle1 expressed in gallons per mile1 calculated by applying the relevant vehicle attributes to the mathematical function published pursuant to section #cbijb7;b77#c77;,a7 of title #di1 ,united ,states ,code4 7#e7 ,other terms ,the terms automobile1 passenger automobile1 light truck1 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 7#db ,u4,s4,c4 #geba et seq474 7e7 ,special rules 7#a7 ,basis reduction ,for purposes of this subtitle1 the basis of any property for which a credit is allowable under subsection 7a7 shall be reduced by the amount of such credit so allowed 7determined without regard to subsection 7c774 7#b7 ,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 section4 7#c7 ,property used by tax-exempt entity ,in the case of a vehicle whose use is described in paragraph 7#c7 or 7#d7 of section #ej7;b7 and which is not subject to a lease1 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 service1 but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection 7a7 with respect to such vehicle 7determined without regard to subsection 7c774 ,for purposes of subsection 7c71 property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation4 7#d7 ,property used outside ,united ,states1 etc41 not qualified ,no credit shall be allowable under subsection 7a7 with respect to any property referred to in section #ej7;b77#a7 or with respect to the portion of the cost of any property taken into account under section #agi4 7#e7 ,recapture ,the ,secretary shall1 by regulations1 provide for recapturing the benefit of any credit allowable under subsection 7a7 with respect to any property which ceases to be property eligible for such credit 7including recapture in the case of a lease period of less than the economic life of a vehicle74 7#f7 ,election not to take credit ,no credit shall be allowed under subsection 7a7 for any vehicle if the taxpayer elects to not have this section apply to such vehicle4 7#g7 ,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-- 7,a7 the applicable provisions of the ,clean ,air ,act for the applicable make and model year of the vehicle 7or applicable air quality provisions of ,state law in the case of a ,state which has adopted such provisions under a waiver under section #bji7;b7 of the ,clean ,air ,act71 and 7,b7 the motor vehicle safety provisions of sections #cjaja through #cjafi of title #di1 ,united ,states ,code4 7#h7 ,inflation adjustment ,in the case of any model year beginning in a calendar year after #bjba1 each dollar amount in subsection 7a77#c77;,b7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the model year begins1 determined by substituting #bjbj for #bjaf in subparagraph 7,a77ii7 thereof4 ,any increase determined under the preceding sentence shall be rounded to the nearest multiple of #ajj4 7f7 ,regulations 7#a7 ,in general ,except as provided in paragraph 7#b71 the ,secretary shall promulgate such regulations as necessary to carry out the provisions of this section4 7#b7 ,coordination in prescription of certain regulations ,the ,secretary of the ,treasury1 in coordination with the ,secretary of ,transportation and the ,administrator of the ,environmental ,protection ,agency1 shall prescribe such regulations as necessary to determine whether a motor vehicle meets the requirements to be eligible for a credit under this section4 4 7b7 ,credit allowed against alternative minimum tax ,section #ch7;c77#d77;,b7 is amended by redesignating clauses 7i7 through 7xii7 as clauses 7ii7 through 7xiii71 respectively1 and by inserting before clause 7ii7 7as so redesignated7 the following new clause3 7i7 the credit determined under section #cj;,e1 4 7c7 ,display of credit ,section #cbijh7;b77#a7 of title #di1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subparagraphs 7,e7 and 7,f7 as subparagraphs 7,f7 and 7,g71 and 7#b7 by inserting after subparagraph 7,d7 the following new subparagraph3 7,e7 the amount of the fuel-efficient motor vehicle credit allowable with respect to the sale of the automobile under section #cj;,e of the ,internal ,revenue ,code of #aihf 7#bf ,u4,s4,c4 #cj;,e74 4 7d7 ,conforming amendments 7#a7 ,section #ch7;b7 is amended by striking plus at the end of paragraph 7#cd71 by striking the period at the end of paragraph 7#ce7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cf7 the portion of the fuel performance rebate to which section #cj;,e7c77#a7 applies4 4 7#b7 ,section #ajaf7;a7 is amended by striking and at the end of paragraph 7#cg71 by striking the period at the end of paragraph 7#ch7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#ci7 to the extent provided in section #cj;,e7e77#a74 4 7#c7 ,section #feja7m7 is amended by inserting #cj;,e7e77#f71 after #cj;,d7e77#d714 7#d7 ,the table of section for subpart ,c of part ,,iv of subchapter ,a of chapter #a is amended by inserting after the item relating to section #cj;,d the following new item3 ,sec4 #cj;,e4 ,fuel performance rebate4 4 #c4 ,fuel performance fee 7a7 ,in general ,section #djfd is amended to read as follows3 #djfd4 ,fuel performance fee 7a7 ,imposition of tax 7#a7 ,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-- 7,a7 the absolute value of the difference between the fuel-economy rating and the reference fuel-economy rating for such motor vehicle for the model year1 7,b7 #ajj1 and 7,c7 the applicable amount4 7#b7 ,applicable amount ,for purposes of paragraph 7#a77;,c71 the applicable amount is equal to-- 7,a7 #a1ejj1 7,b7 #b1ejj1 if the fuel-economy rating for such motor vehicle is more than #ej percent less efficient than the reference fuel-economy rating for such motor vehicle as determined under paragraph 7#a77;,a71 or 7,c7 #c1ejj1 if the fuel-economy rating for such motor vehicle is more than #ge percent less efficient than the reference fuel-economy rating for such motor vehicle as determined under paragraph 7#a77;,a74 7b7 ,fuel guzzler motor vehicle ,for purposes of this section-- 7#a7 ,in general ,the term fuel guzzler motor vehicle means a passenger automobile or light truck-- 7,a7 which is treated as a motor vehicle for purposes of title ,,ii of the ,clean ,air ,act1 7,b7 which achieves a fuel-economy rating that is less efficient than the reference fuel-economy rating for such motor vehicle for the model year1 7,c7 which has a gross vehicle weight rating of not more than #h1ejj pounds1 and 7,d7 which is made by a manufacturer beginning with model year #bjbc4 7#b7 ,exception for emergency vehicles ,the term fuel guzzler motor vehicle does not include any vehicle sold for use and used-- 7,a7 as an ambulance or combination ambulance-hearse1 7,b7 by the ,united ,states or by a ,state or local government for police or other law enforcement purposes1 or 7,c7 for other emergency uses prescribed by the ,secretary by regulations4 7c7 ,other definitions ,for purposes of this section-- 7#a7 ,fuel-economy rating ,the term fuel-economy rating means1 with respect to any motor vehicle1 the combined fuel-economy rating for such motor vehicle1 expressed in gallons per mile1 determined in accordance with section #cbijd of title #di1 ,united ,states ,code4 7#b7 ,model year ,the term model year has the meaning given such term under section #cbija7;a7 of such title #di4 7#c7 ,motor vehicle ,the term motor vehicle means any vehicle which is manufactured primarily for use on public streets1 roads1 and highways 7not including a vehicle operated exclusively on a rail or rails7 and which has at least #d wheels4 7#d7 ,reference fuel-economy rating ,the term reference fuel-economy rating means1 with respect to any motor vehicle1 the fuel economy standard for such motor vehicle1 expressed in gallons per mile1 calculated by applying the relevant vehicle attributes to the mathematical function published pursuant to section #cbijb7;b77#c77;,a7 of title #di1 ,united ,states ,code4 7#e7 ,other terms ,the terms automobile1 passenger automobile1 light truck1 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 7#db ,u4,s4,c4 #geba et seq474 7d7 ,inflation adjustment ,in the case of any model year beginning in a calendar year after #bjbc1 each dollar amount in subsection 7a77#b7 shall be increased by an amount equal to-- 7#a7 such dollar amount1 multiplied by 7#b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the model year begins1 determined by substituting #bjbb for #bjaf in subparagraph 7,a77ii7 thereof4 ,any increase determined under the preceding sentence shall be rounded to the nearest multiple of #ajj4 4 7b7 ,conforming amendments 7#a7 ,the heading for part ,i of subchapter ,a of chapter #cb is amended by striking ,gas and inserting ,fuel4 7#b7 ,the table of parts for subchapter ,a of chapter #cb is amended by striking ,gas in the item relating to part ,i and inserting ,fuel4 7#c7 ,the table of sections for part ,i of subchapter ,a of chapter #cb is amended by striking ,gas in the item relating to section #djfd and inserting ,fuel4 7#d7 ,the heading for subsection 7d7 of section #ajaf is amended by striking gas guzzler tax and inserting fuel performance fee4 7#e7 ,the heading for subsection 7e7 of section #dbag is amended by striking gas guzzler tax and inserting fuel performance fee4 7#f7 ,the heading for subparagraph 7,b7 of section #dbag7;e77#c7 is amended by striking gas guzzler tax and inserting fuel performance fee4 7#g7 ,section #dbag7;e7 is amended by striking gas guzzler tax each place it appears and inserting fuel performance fee4