,,ii #aahth ,,congress #ast ,session ,s4 #bifb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bh 7legislative day1 ,september #bb71 #bjbc,mr4 ,vance introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to repeal tax incentives relating to electric vehicles1 and to establish a tax credit to promote automobile manufacturing in the ,united ,states4 #a4 ,short title ,this ,act may be cited as the ,drive ,american ,act4 #b4 ,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 ,i ,repeal of ,electric ,vehicle ,incentives #aja4 ,repeal of clean vehicle credit 7a7 ,in general ,subpart ,b of part ,,iv of subchapter ,a of chapter #a is amended by striking section #cj;,d 7and by striking the item relating to such section in the table of sections for such subpart74 7b7 ,conforming amendments 7#a7 ,section #cj;,b7d77#c7 is amended by striking subparagraph 7,d74 7#b7 ,section #ch7;b7 is amended by striking paragraph 7#cj74 7#c7 ,section #agi;,d7d77#c77;,b77ii7 is amended by inserting 1 as in effect on the day before the date of the enactment of the ,drive ,american ,act after section #cj;,d7g77#i74 7#d7 ,section #ajaf7;a7 is amended-- 7,a7 in paragraph 7#cf71 by adding and at the end1 7,b7 by striking paragraph 7#cg71 and 7,c7 by redesignating paragraph 7#ch7 as paragraph 7#cg74 7#e7 ,section #fbac7;g77#b7 is amended by striking subparagraph 7,t74 7#f7 ,section #fdag7;d77#a77;,a77iv7 is amended by inserting 1 as in effect on the day before the date of the enactment of the ,drive ,american ,act after section #cj;,d7g77#i74 7#g7 ,section #feja7m7 is amended by striking #cj;,d7f77#f714 7#h7 ,section #aff7;b77#e77;,a77ii7 of title #bc1 ,united ,states ,code1 is amended by inserting 1 as in effect on the day before the date of the enactment of the ,drive ,american ,act after section #cj;,d7d77#a7 of the ,internal ,revenue ,code of #aihf4 7c7 ,effective date ,the amendments made by this section shall apply to vehicle placed in service after ,december #ca1 #bjbb4 #ajb4 ,repeal of credit for previously-owned clean vehicles 7a7 ,in general ,subpart ,a of part ,,iv of subchapter ,a of chapter #a is amended by striking section #be;,e 7and by striking the item relating to such section in the table of sections for such subpart74 7b7 ,conforming amendment ,section #fbac7;g77#b7 is amended by striking subparagraph 7,u74 7c7 ,effective date ,the amendments made by this section shall apply to vehicles acquired after ,december #ca1 #bjbb4 #ajc4 ,repeal of credit for qualified commercial clean vehicles 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by striking section #de,w 7and by striking the item relating to such section in the table of sections for such subpart74 7b7 ,conforming amendments 7#a7 ,section #ch7;b7 is amended by striking paragraph 7#cg74 7#b7 ,section #fbac7;g77#b7 is amended by striking subparagraph 7,v74 7c7 ,effective date ,the amendments made by this section shall apply to vehicles acquired after ,december #ca1 #bjbb4 #ajd4 ,alternative fuel refueling property credit 7a7 ,in general ,subpart ,b of part ,,iv of subchapter ,a of chapter #a is amended by striking section #cj;,c 7and by striking the item relating to such section in the table of sections for such subpart74 7b7 ,conforming amendments 7#a7 ,section #ch7;b7 is amended by striking paragraph 7#be74 7#b7 ,section #ee7;c77#c7 is amended by striking sections #cj;,c7d77#b7 and #ch7;c7 and inserting section #ch7;c74 7#c7 ,section #ajaf7;a71 as amended by section #aja1 is amended-- 7,a7 in paragraph 7#ce71 by adding and at the end1 7,b7 by striking paragraph 7#cf71 and 7,c7 by redesignating paragraph 7#cg7 as paragraph 7#cf74 7#d7 ,section #fdag7;b7 is amended by striking paragraph 7#a74 7#e7 ,section #fdah7;f77#a77;,a7 is amended by striking clause 7i74 7#f7 ,section #feja7m7 is amended by striking #cj;,c7e77#d714 7#g7 ,section #bdd7;b7 of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agjeb7;b77 is amended by striking paragraph 7#f74 7c7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjba4 ,,ii ,credit for automobiles made in the ,united ,states #bja4 ,establishment of ,america ,first ,vehicle ,credit 7a7 ,in general ,subpart ,b of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new section3 #cj;,e4 ,america ,first ,vehicle ,credit 7a7 ,allowance of credit ,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 credit amounts determined under subsection 7b7 with respect to each new vehicle placed in service by the taxpayer during the taxable year4 7b7 ,per vehicle dollar limitation 7#a7 ,in general ,the amount determined under this subsection with respect to any new vehicle is the sum of the amounts determined under paragraphs 7#b7 and 7#c7 with respect to such vehicle4 7#b7 ,base amount ,the amount determined under this paragraph is #b1ejj4 7#c7 ,vehicle capacity 7,a7 ,in general ,the amount determined under this paragraph is the greater of-- 7i7 the payload capacity adjustment1 or 7ii7 the seating capacity adjustment4 7,b7 ,payload capacity adjustment 7i7 ,in general ,for purposes of subparagraph 7,a77i71 the payload capacity adjustment is #ejj for every #bej pounds of payload capacity in excess of #a1jjj pounds4 7ii7 ,payload capacity ,for purposes of clause 7i71 the payload capacity of any new vehicle shall be an amount equal to the difference between-- 7,i7 the vehicle curb weight 7as such term is defined in section #baf of the ,clean ,air ,act 7#db ,u4,s4,c4 #geej77 of such vehicle1 and 7,,ii7 the gross vehicle weight rating of such vehicle4 7,c7 ,seating capacity adjustment 7i7 ,in general ,for purposes of subparagraph 7,a77ii71 the seating capacity adjustment is #a1jjj for each passenger by which the seating capacity of the new vehicle is in excess of #d passengers4 7ii7 ,seating capacity ,for purposes of clause 7i71 the seating capacity of any new vehicle shall be the maximum number of passengers 7including the driver7 which such vehicle can safely transport 7as determined pursuant to applicable ,federal laws and regulations74 7,d7 ,limitation ,the amount determined under this paragraph shall not exceed #e1jjj4 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 ,personal credit ,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 ,a for such taxable year4 7d7 ,new vehicle 7#a7 ,in general ,the term new vehicle means a motor vehicle-- 7,a7 the original use of which commences with the taxpayer1 7,b7 which is acquired for use or lease by the taxpayer and not for resale1 7,c7 which is made by a qualified manufacturer1 7,d7 which satisfies each of the requirements under paragraphs 7#a7 and 7#b7 of subsection 7e71 7,e7 which has a gross vehicle weight rating of less than #ad1jjj pounds1 7,f7 which is propelled to a significant extent by a gasoline or diesel internal combustion engine1 7,g7 the final assembly of which occurs within the ,united ,states1 and 7,h7 for which the person who sells any vehicle to the taxpayer furnishes a report to the taxpayer and to the ,secretary1 at such time and in such manner as the ,secretary shall provide1 containing-- 7i7 the name and taxpayer identification number of the taxpayer1 7ii7 the vehicle identification number of the vehicle1 unless1 in accordance with any applicable rules promulgated by the ,secretary of ,transportation1 the vehicle is not assigned such a number1 7iii7 verification that original use of the vehicle commences with the taxpayer1 and 7iv7 the maximum credit under this section allowable to the taxpayer with respect to the vehicle4 7#b7 ,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#c7 ,qualified manufacturer ,the term qualified manufacturer means any manufacturer 7as defined in section #cjajb7;a77#f7 of title #di1 ,united ,states ,code1 but not including any importer described in subparagraph 7,b7 of that section7 which enters into a written agreement with the ,secretary under which such manufacturer agrees to make periodic written reports to the ,secretary 7at such times and in such manner as the ,secretary may provide7 providing vehicle identification numbers and such other information related to each vehicle manufactured by such manufacturer as the ,secretary may require4 7#d7 ,final assembly ,for purposes of paragraph 7#a77;,g71 the term final assembly means the process by which a manufacturer produces a new vehicle at1 or through the use of1 a plant1 factory1 or other place from which the vehicle is delivered to a dealer or importer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle1 whether or not the component parts are permanently installed in or on the vehicle4 7e7 ,content requirements 7#a7 ,regional value content 7,a7 ,in general ,the requirement described in this paragraph with respect to a vehicle is that the regional value content is not less than #fj percent 7as certified by the qualified manufacturer1 in such form or manner as prescribed by the ,secretary74 7,b7 ,regional value content ,the regional value content is the amount 7expressed as a percentage7 equal to the quotient of-- 7i7 the net cost of the vehicle minus the value of any non-originating materials used in the production of the vehicle1 divided by 7ii7 the net cost of the vehicle4 7,c7 ,value of non-originating materials 7i7 ,in general ,for purposes of subparagraph 7,b77i71 the value of any non-originating materials shall include any materials of indeterminate origin which are used by the producer in the production of the vehicle4 7ii7 ,exclusion ,for purposes of subparagraph 7,b77i71 the value of any non-originating materials used in the production of the vehicle shall not include the value of any non-originating materials used or consumed to produce originating materials which are subsequently used or consumed in the production of the vehicle4 7#b7 ,labor value content 7,a7 ,in general ,the requirement described in this paragraph with respect to a vehicle is that the labor value content is not less than #be percent 7as certified by the qualified manufacturer1 in such form or manner as prescribed by the ,secretary74 7,b7 ,labor value content ,the labor value content is the amount 7expressed as a percentage7 equal to the quotient of-- 7i7 the sum of-- 7,i7 the value of high-wage material contained in the vehicle1 plus 7,,ii7 the value of high-wage labor costs associated with production of the vehicle1 divided by 7ii7 the net cost of the vehicle4 7#c7 ,definitions ,for purposes of this subsection-- 7,a7 ,high-wage labor costs ,the term high-wage labor costs means an amount equal to the sum of wage expenditures 7not including benefits7 incurred in the assembly of the vehicle for workers who perform direct production work at a qualifying wage-rate assembly plant4 7,b7 ,high-wage material ,the term high-wage material means the net cost of material that undergoes production in a qualifying wage-rate production plant and that is used in the production of the vehicle4 7,c7 ,net cost ,the term net cost means total cost minus sales promotion1 marketing1 and after-sales service costs1 royalties1 shipping and packing costs1 and nonallowable interest costs that are included in the total cost4 7,d7 ,non-originating material ,the term non-originating material means a material which is not an originating material4 7,e7 ,originating material ,the term originating material means a material which is-- 7i7 wholly obtained or produced entirely in the ,united ,states or ,canada1 or 7ii7 substantially transformed in the ,united ,states or ,canada from a material which is not wholly grown1 produced1 or manufactured in the ,united ,states or ,canada4 7,f7 ,qualifying wage-rate assembly plant ,the term qualifying wage-rate production plant means a facility which-- 7i7 assembles passenger vehicles1 light trucks1 or heavy trucks1 7ii7 is located in the ,united ,states1 and 7iii7 has an average hourly production wage rate for employees working in such facility which is not less than #dd per hour4 7,g7 ,qualifying wage-rate production plant ,the term qualifying wage-rate production plant means a facility which-- 7i7 produces materials for passenger vehicles1 light trucks1 or heavy trucks1 7ii7 is located in the ,united ,states1 and 7iii7 has an average hourly production wage rate for employees working in such facility which is not less than #ce per hour4 7#d7 ,inflation adjustment 7,a7 ,in general ,in the case of any calendar year beginning after #bjbe1 the dollar amounts in subparagraphs 7,f77iii7 and 7,g77iii7 of paragraph 7#c7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting in subparagraph 7,a77ii7 thereof calendar year #bjbd for calendar year #bjaf4 7,b7 ,rounding ,if any amount as adjusted under subparagraph 7,a7 is not a multiple of #a1 such dollar amount shall be rounded to the next lowest multiple of #a4 7#e7 ,regulations and guidance 7,a7 ,in general ,the ,secretary shall1 in consultation with the ,secretary of ,commerce and the ,secretary of ,labor1 issue such regulations or other guidance as the ,secretary determines necessary to carry out the purposes of this subsection1 including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection4 7,b7 ,deadline for proposed guidance ,not later than ,december #ca1 #bjbd1 the ,secretary shall issue proposed guidance with respect to the requirements under this subsection4 7f7 ,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 ,the amount of any deduction or other credit allowable under this chapter for a vehicle for which a credit is allowable under subsection 7a7 shall be reduced by the amount of credit allowed under such subsection for such vehicle 7determined without regard to subsection 7c774 7#c7 ,property used by tax-exempt entity ,in the case of a vehicle the use of which 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 ,states not qualified ,no credit shall be allowable under subsection 7a7 with respect to any property referred to in section #ej7;b77#a74 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 credit4 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 motor vehicle safety standards ,a vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with the motor vehicle safety provisions of sections #cjaja through #cjafi of title #di1 ,united ,states ,code4 7#h7 ,one credit per vehicle ,in the case of any vehicle1 the credit described in subsection 7a7 shall only be allowed once with respect to such vehicle1 as determined based upon the vehicle identification number of such vehicle4 7#i7 ,,vin requirement ,no credit shall be allowed under this section with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year4 7#aj7 ,limitation based on modified adjusted gross income 7,a7 ,in general ,no credit shall be allowed under subsection 7a7 for any taxable year if-- 7i7 the lesser of-- 7,i7 the modified adjusted gross income of the taxpayer for such taxable year1 or 7,,ii7 the modified adjusted gross income of the taxpayer for the preceding taxable year1 exceeds 7ii7 the threshold amount4 7,b7 ,threshold amount ,for purposes of subparagraph 7,a77ii71 the threshold amount shall be-- 7i7 in the case of a joint return or a surviving spouse 7as defined in section #b7;a771 #cjj1jjj1 7ii7 in the case of a head of household 7as defined in section #b7;b771 #bbe1jjj1 and 7iii7 in the case of a taxpayer not described in clause 7i7 or 7ii71 #aej1jjj4 7,c7 ,modified adjusted gross income ,for purposes of this paragraph1 the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section #iaa1 #ica1 or #icc4 7#aa7 ,manufacturer's suggested retail price limitation 7,a7 ,in general ,no credit shall be allowed under subsection 7a7 for a vehicle with a manufacturer's suggested retail price in excess of the applicable limitation4 7,b7 ,applicable limitation ,for purposes of subparagraph 7,a71 the applicable limitation for each vehicle classification is as follows3 7i7 ,vans ,in the case of a van1 #hj1jjj4 7ii7 ,sport utility vehicles ,in the case of a sport utility vehicle1 #hj1jjj4 7iii7 ,pickup trucks ,in the case of a pickup truck1 #hj1jjj4 7iv7 ,other ,in the case of any other vehicle1 #ee1jjj4 7,c7 ,regulations and guidance ,for purposes of this paragraph1 the ,secretary shall prescribe such regulations or other guidance as the ,secretary determines necessary for determining vehicle classifications using criteria similar to the criteria described in part #ebc of title #di1 ,code of ,federal ,regulations 7as in effect on the date of enactment of the ,drive ,american ,act74 7g7 ,termination ,no credit shall be allowed under this section with respect to any vehicle placed in service after ,december #ca1 #bjcc4 4 7b7 ,conforming amendments 7#a7 ,section #ch7;b71 as amended by section #ajc1 is amended by inserting after paragraph 7#cf7 the following3 7#cg7 the portion of the ,america ,first vehicle credit to which section #cj;,e7c77#a7 applies1 4 7#b7 ,section #ajaf7;a7 is amended-- 7,a7 in paragraph 7#cg71 by striking and at the end1 7,b7 by redesignating paragraph 7#ch7 as paragraph 7#ci71 and 7,c7 by inserting after paragraph 7#cg7 the following3 7#ch7 to the extent provided in section #cj;,e7f77#a71 and 4 7#c7 ,section #fbac7;g77#b71 as amended by sections #aja1 #ajb1 and #ajc1 is amended by inserting after subparagraph 7,s7 the following3 7,t7 an omission of a correct vehicle identification number required under section #cj;,e7f77#i7 7relating to credit for new vehicles7 to be included on a return4 4 7#d7 ,section #feja7m71 as amended by section #aja1 is amended by inserting #cj;,e7f77#f71 after #cj;,d7e77#d714 7#e7 ,the table of sections for subpart ,b of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new item3 ,sec4 #cj;,e4 ,america ,first ,vehicle ,credit4 4 7c7 ,effective date ,the amendments made by this section shall apply to vehicles placed in service after ,december #ca1 #bjbd4