[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5251 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 5251

  To amend the Internal Revenue Code of 1986 to encourage the use of 
           alternative fuel vehicles, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 27, 2006

  Mrs. Wilson of New Mexico 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 encourage the use of 
           alternative fuel vehicles, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fuel Efficient Vehicle Tax Incentive 
Act of 2006''.

SEC. 2. ALTERNATIVE FUEL VEHICLES ALLOWED SAME DEPRECIATION LIMITATION 
              AS ELECTRIC PASSENGER AUTOMOBILES.

    (a) In General.--Clause (ii) of section 280F(a)(1)(C) of the 
Internal Revenue Code of 1986 (relating to purpose built passenger 
vehicles) is amended to read as follows:
                            ``(ii) Special rule for certain electric 
                        and alternative motor vehicles.--In the case of 
                        a purpose built passenger vehicle (as defined 
                        in section 4001(a)(2)(C)(ii)) and in the case 
                        of a motor vehicle for which a credit is 
                        allowable under section 30B, each of the annual 
                        limitations specified in subparagraphs (A) and 
                        (B) shall be tripled.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 3. LIMITATION ON DEPRECIATION OF CERTAIN LUXURY AUTOMOBILES 
              APPLIED TO SPORTS UTILITY VEHICLES; LIGHT TRUCKS NOT 
              TREATED AS PASSENGER AUTOMOBILES.

    (a) In General.--Subparagraph (A) of section 280F(d)(5) of the 
Internal Revenue Code of 1986 (defining passenger automobile) is 
amended by striking clause (ii) and all that follows and inserting the 
following new clause:
                            ``(ii)(I) except as provided in subclause 
                        (II) or (III), which is rated at 6,000 pounds 
                        unloaded gross vehicle weight or less,
                            ``(II) in the case of a van, which is rated 
                        at 6,000 pounds gross vehicle weight or less
                            ``(III) in the case of a truck, which is 
                        rated at 4,000 pounds gross vehicle weight or 
                        less, or
                            ``(IV) in the case of a sports utility 
                        vehicle (as defined in section 179(b)(6)) not 
                        described in subclause (I), which is rated at 
                        more than 6,000 pounds but not more than 14,000 
                        pounds gross vehicle weight.''.
    (b) Conforming Amendment.--Section 179(b)(6)(B)(i) of such Code is 
amended by inserting ``and'' at the end of subclause (I), by striking 
subclauses (II) and (III) and inserting the following:
                                    ``(II) which is rated at more than 
                                6,000 pounds but not more than 14,000 
                                pounds gross vehicle weight.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
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