[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3908 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 3908
To amend the Internal Revenue Code of 1986 to provide a credit for
fuel-efficient motor vehicles and to require major integrated oil
companies to amortize intangible drilling and development costs.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 18, 2006
Mr. Wyden (for himself and Mr. Bennett) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a credit for
fuel-efficient motor vehicles and to require major integrated oil
companies to amortize intangible drilling and development costs.
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 ``Oil Independence, Limiting
Subsidies, and Accelerating Vehicle Efficiency (OILSAVE) Act''.
SEC. 2. TAX CREDIT FOR FUEL-EFFICIENT MOTOR VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to other credits) is
amended by inserting after section 30C the following new section:
``SEC. 30D. FUEL-EFFICIENT MOTOR VEHICLE CREDIT.
``(a) Allowance of Credit.--There shall be allowed a credit against
the tax imposed by this chapter for the taxable year an amount equal to
the applicable amount for each new qualified fuel-efficient motor
vehicle placed in service by the taxpayer during the taxable year.
``(b) New Qualified Fuel-Efficient Motor Vehicle.--For purposes of
this section, the term `new qualified fuel-efficient motor vehicle'
means a motor vehicle (as defined under section 30(c)(2))--
``(1) which is a passenger automobile or a light truck,
``(2) which--
``(A) in the case of a passenger automobile,
achieves a fuel economy of not less than 34.5 miles per
gallon, and
``(B) in the case of a light truck, achieves a fuel
economy of not less than 27.5 miles per gallon,
``(3) the original use of which commences with the
taxpayer,
``(4) which is acquired for use or lease by the taxpayer
and not for resale, and
``(5) which is made by a manufacturer for model year 2007,
2008, 2009, 2010, or 2011.
``(c) Applicable Amount.--For purposes of this section, the
applicable amount shall be determined as follows:
------------------------------------------------------------------------
In the case
of a In the case
passenger of a light
``If the motor vehicle achieves a fuel economy automobile, truck, the
of: the applicable
applicable amount is:
amount is:
------------------------------------------------------------------------
27.5 miles per gallon......................... $0 $630
28.5.......................................... 0 710
29.5.......................................... 0 780
30.5.......................................... 0 850
31.5.......................................... 0 920
32.5.......................................... 0 980
33.5.......................................... 0 1,040
34.5.......................................... 630 1.090
35.5.......................................... 700 1,140
36.5.......................................... 760 1,190
37.5.......................................... 820 1,240
38.5.......................................... 880 1,280
39.5.......................................... 940 1,320
40.5.......................................... 990 1,360
41.5.......................................... 1,040 1,400
42.5.......................................... 1,090 1,430
43.5.......................................... 1,140 1,470
44.5.......................................... 1,180 1,500
45.5.......................................... 1,220 1,530
46.5.......................................... 1,260 1,560
47.5.......................................... 1,300 1,590
48.5.......................................... 1,340 1,620
49.5.......................................... 1,370 1,640
50.5.......................................... 1,410 1,670
51.5.......................................... 1,440 1,690
52.5.......................................... 1,470 1,720
53.5.......................................... 1,500 1,740
54.5.......................................... 1,530 1,760
55.5.......................................... 1,560 1,780
56.5.......................................... 1,590 1,800
57.5.......................................... 1,610 1,820
58.5.......................................... 1,640 1,840
59.5 or more.................................. 1,660 1,860
------------------------------------------------------------------------
``(d) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Fuel economy.--The term `fuel economy' has the
meaning given such term under section 32901(a)(10) of title 49,
United States Code.
``(2) Model year.--The term `model year' has the meaning
given such term under section 32901(a)(14) of such title.
``(3) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' have the meaning 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.
``(4) 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.
``(5) No double benefit.--
``(A) Coordination with other vehicle credits.--No
credit shall be allowed under subsection (a) with
respect to any new qualified fuel-efficient motor
vehicle for any taxable year if a credit is allowed
with respect to such motor vehicle for such taxable
year under section 30 or 30B.
``(B) Other tax benefits.--The amount of any
deduction or credit (other than the credit allowable
under this section and any credit described in
subparagraph (A)) allowable under this chapter with
respect to any new qualified fuel-efficient motor
vehicle shall be reduced by the amount of credit
allowed under subsection (a) for such motor vehicle for
such taxable year.
``(6) Property used outside the 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.
``(7) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects not to have this section apply to such vehicle.
``(8) Interaction with air quality and motor vehicle safety
standards.--Unless otherwise provided in this section, a motor
vehicle shall not be considered eligible for a credit under
this section unless such vehicle is in compliance with--
``(A) the applicable provisions of the Clean Air
Act for the applicable make and model year of the
vehicle (or applicable air quality provisions of State
law in the case of a State which has adopted such
provision under a waiver under section 209(b) of the
Clean Air Act), and
``(B) the motor vehicle safety provisions of
sections 30101 through 30169 of title 49, United States
Code.
``(e) Credit May Be Transferred.--
``(1) In general.--A taxpayer may, in connection with the
purchase of a new qualified fuel-efficient motor vehicle,
transfer any credit allowable under subsection (a) to any
person who is in the trade or business of selling new qualified
fuel-efficient motor vehicles, but only if such person clearly
discloses to such taxpayer, through the use of a window sticker
attached to the new qualified fuel-efficient vehicle--
``(A) the amount of any credit allowable under
subsection (a) with respect to such vehicle, and
``(B) a notification that the taxpayer will not be
eligible for any credit under section 30 or 30B with
respect to such vehicle unless the taxpayer elects not
to have this section apply with respect to such
vehicle.
``(2) Consent required for revocation.--Any transfer under
paragraph (1) may be revoked only with the consent of the
Secretary.
``(3) Regulations.--The Secretary may prescribe such
regulations as necessary to ensure that any credit described in
paragraph (1) is claimed once and not retransferred by a
transferee.''.
(b) Conforming Amendments.--
(1) Section 1016(a) of the Internal Revenue Code of 1986 is
amended by striking ``and'' at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(38) to the extent provided in section 30D(d)(4).''.
(2) Section 6501(m) of such Code is amended by inserting
``30D(d)(7),'' after ``30C(e)(5),''.
(3) The table of section for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 30C the following new item:
``Sec. 30D. Fuel-efficient motor vehicle credit.''.
(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.
SEC. 3. AMORTIZATION OF INTANGIBLE DRILLING AND DEVELOPMENT COSTS FOR
MAJOR INTEGRATED OIL COMPANIES.
(a) In General.--Subsection (i) of section 263 of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``Incurred Outside the United States'' in
the heading,
(2) by inserting ``or owned or operated by a major
integrated oil company (as defined in section 167(h)(5)(B))''
after ``United States'', and
(3) by inserting ``located outside the United States''
after ``nonproductive well'' in the last sentence thereof.
(b) Effective Date.--The amendments made by this section shall
apply to costs paid or incurred after the date of the enactment of this
Act.
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