A bill to amend the Internal Revenue Code of 1954 to allow a refundable income tax credit for the purchase of certain fuel-efficient automobiles, and for other purposes.

Amends the Internal Revenue Code to allow individual taxpayers a refundable income tax credit for the purchase of domestically manufactured fuel-efficient passenger automobiles acquired after June 12, 1980, and before January 1, 1988. Limits the amount of such credit to the lesser of ten percent of the cost of such automobile or $1,000. Limits the applicability of the credit to one automobile in a taxable year, and denies the credit to a taxpayer who has claimed such credit in any of the two immediately preceding taxable years.

Permits a full ten percent investment tax credit for fuel-efficient automobiles without regard to the useful life of such automobiles.