Amends the Internal Revenue Code to allow an individual taxpayer who operates a passenger automobile or light truck a tax credit based upon the average fuel economy of such vehicle. Terminates the tax credit for alternative motor vehicles.
[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 6773 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6773
To amend the Internal Revenue Code of 1986 to provide a tax credit to
consumers based on fuel economy.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 1, 2008
Mr. Childers 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 to
consumers based on fuel economy.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. FUEL ECONOMY TAX CREDIT.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 25E the following new section:
``SEC. 25E. FUEL ECONOMY TAX CREDIT.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the product of--
``(1) $100, multiplied by
``(2) each mile per gallon (or portion thereof) for which
the mile per gallon highway rating of a qualified vehicle
placed in service by the taxpayer during the taxable year
exceeds the CAFE standard applicable to such vehicle.
``(b) Limitations.--
``(1) Limitation based on fuel efficiency.--In the case of
any vehicle for which the mile per gallon highway rating
exceeds 50 miles per gallon, paragraph (2) shall be applied by
treating the the mile per gallon highway rating of such vehicle
as 50 miles per gallon.
``(2) Limitation based on adjusted gross income.--The
amount of the credit allowed by subsection (a) (determined
without regard to this subsection) shall be reduced (but not
below zero) by 5 percent for each $1,000 (or fraction thereof)
by which the taxpayer's adjusted gross income exceeds $150,000.
``(c) Definitions.--For purposes of this section--
``(1) Highway rating of qualified vehicle.--The highway
rating of a qualified vehicle shall be the rating determined by
the Secretary of Transportation for such vehicle.
``(2) Qualified vehicle.--The term `qualified vehicle'
means a motor vehicle which is a passenger automobile or a
light truck--
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use or lease by the
taxpayer and not for resale, and
``(C) which is made by a manufacturer.
``(3) CAFE standard.--The term `CAFE standard' means the
average fuel economy level established under chapter 329 of
title 49, United States Code.
``(4) Motor vehicle.--The term `motor vehicle' has the
meaning given such term by section 30(c)(2).
``(5) Other terms.--The terms `passenger automobile',
`light truck', 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 (42 U.S.C. 7521
et seq.).
``(d) Special Rules.--
``(1) Reduction in basis.--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 (determined without regard to subsection (g)).
``(2) No double benefit.--The amount of any deduction or
other credit allowable under this chapter for the taxable year
with respect to any vehicle shall be reduced by the amount of
credit allowed under subsection (a) for such vehicle for the
taxable year.
``(3) Property used outside united states, etc., not
qualified.--No credit shall be allowable under subsection (a)
with respect to any property referred to in section 50(b)(1) or
with respect to the portion of the cost of any property taken
into account under section 179.
``(4) 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 (including recapture in
the case of a lease period of less than the economic life of a
vehicle).
``(5) Election to not 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.''.
(b) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 25D the following new
item:
``Sec. 25E. Fuel economy tax credit.''.
(c) Termination of Alternative Motor Vehicle Credit.--Subsection
(j) of section 30B of the Internal Revenue Code of 1986 is amended to
read as follows:
``(j) Termination.--This section shall not apply to any property
purchased after the date of the enactment of this subsection.''.
(d) Effective Date.--The amendments made by this section shall
apply to vehicles placed in service after the date of the enactment of
this Act in taxable years ending after such date.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line