[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 718 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 718

To amend the Internal Revenue Code of 1986 to allow a refundable credit 
       for the purchase of domestically manufactured automobiles.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 1993

  Mr. Gilman 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 allow a refundable credit 
       for the purchase of domestically manufactured automobiles.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CREDIT FOR PURCHASE OF DOMESTICALLY MANUFACTURED 
              AUTOMOBILES.

    (a) General Rule.--Subpart C of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. PURCHASE OF DOMESTICALLY MANUFACTURED AUTOMOBILES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this subtitle for the taxable year an amount 
for each qualified automobile acquired by the taxpayer during the 
taxable year equal to the lesser of--
            ``(1) 10 percent of the cost of such automobile to the 
        taxpayer, or
            ``(2) $2,500 ($1,000 in the case of a qualified automobile 
        described in subsection (b)(1)(B)).
    ``(b) Qualified Automobile.--For purposes of this section--
            ``(1) In general.--The term `qualified automobile' means 
        any automobile if such automobile is manufactured in the United 
        States and if--
                    ``(A) such automobile is purchased by the taxpayer 
                in the 1st retail sale of such automobile (within the 
                meaning of section 4011), or
                    ``(B) such automobile is acquired by the taxpayer 
                in a qualified resale and such resale occurs within the 
                2-year period beginning on the date of the 1st retail 
                sale of such automobile.
            ``(2) Automobile.--The term `automobile' means any 4-
        wheeled vehicle which is propelled by fuel (as defined in 
        section 4064(b)(7)) and which is manufactured primarily for use 
        on public streets, roads, and highways.
            ``(3) Qualified resale.--The term `qualified resale' means 
        any sale of an automobile if--
                    ``(A) such sale is after the 1st retail sale of 
                such automobile,
                    ``(B) such sale is for a purpose other than resale, 
                and
                    ``(C) no credit was allowed under this section for 
                any prior acquisition of such automobile other than at 
                its 1st retail sale.
    ``(c) Special Rules.--For purposes of this section--
            ``(1) Manufactured in the united states.--An automobile 
        shall be treated as manufactured in the United States if at 
        least 75 percent of the cost to the manufacturer of such 
        vehicle is attributable to value added in the United States or 
        Canada.
            ``(2) Joint acquisitions.--If any qualified automobile is 
        jointly acquired by two or more persons--
                    ``(A) the aggregate amount allowable as credit 
                under subsection (a) to such persons with respect to 
                such automobile shall be determined by treating all of 
                such persons as one taxpayer whose taxable year is the 
                calendar year in which such acquisition occurs, and
                    ``(B) there shall be allowed to each of such 
                persons a credit under subsection (a) for such person's 
                taxable year in which such calendar year ends in an 
                amount which bears the same ratio to the credit 
                determined under subparagraph (A) as the portion of the 
                cost of such automobile borne by such person bears to 
                the aggregate cost of such automobile.
    ``(d) Basis Reduction.--The basis of any qualified automobile shall 
be reduced by the amount of the credit allowable under this section to 
the taxpayer for the purchase of such automobile.''
    (b) Clerical Amendment.--The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of such Code is amended by 
striking the item relating to section 35 and inserting the following:

                              ``Sec. 35. Credit for purchase of 
                                        domestically manufactured 
                                        automobiles.
                              ``Sec. 36. Overpayments of tax.''
    (c) Effective Date.--The amendments made by this section shall 
apply to automobiles acquired after December 31, 1993.

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