[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7303 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7303

To amend the Internal Revenue Code of 1986 to allow a one-time, $1,500 
 credit against income tax for the purchase an automobile manufactured 
                         in the United States.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 20, 2008

 Mr. Gohmert 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 one-time, $1,500 
 credit against income tax for the purchase an automobile manufactured 
                         in the United States.

    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 ``Consumer and Automotive Recovery Act 
of 2008'' or the ``CAR Act''.

SEC. 2. AMERICAN-MADE AUTOMOBILE CREDIT.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25D the 
following new section:

``SEC. 25E. AMERICAN-MADE AUTOMOBILE CREDIT.

    ``(a) Allowance of Credit.--In the case of an individual who places 
in service a qualified vehicle during the taxable year, there shall be 
allowed as a credit against the tax imposed by this subtitle for the 
taxable year an amount equal to $1,500.
    ``(b) Limitation Based on Modified Adjusted Gross Income.--
            ``(1) In general.--The credit which would (but for this 
        paragraph) be allowed under subsection (a) for the taxable year 
        shall be reduced (but not below zero) by the amount determined 
        under paragraph (2).
            ``(2) Amount of reduction.--The amount determined under 
        this paragraph is the amount which bears the same ratio to the 
        amount which would be allowed as--
                    ``(A) the excess of--
                            ``(i) the taxpayer's modified adjusted 
                        gross income for such taxable year, over
                            ``(ii) $125,000 ($250,000 in the case of a 
                        joint return), bears to
                    ``(B) $10,000.
            ``(3) Modified adjusted gross income.--The term `modified 
        adjusted gross income' means the adjusted gross income of the 
        taxpayer for the taxable year increased by any amount excluded 
        from gross income under section 911, 931, or 933.
    ``(c) Qualified Vehicle.--For purposes of this section, the term 
`qualified vehicle' means any motor vehicle (as defined in section 
30(c)(2))--
            ``(1) substantially all of the manufacturing of which 
        occurred in the United States,
            ``(2) which is acquired for use by the taxpayer and not for 
        resale,
            ``(3) the original use of which commences with the 
        taxpayer, and
            ``(4) which has a vehicle gross weight rating of not more 
        than 14,000 pounds.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) One-time only.--If a credit is allowed under 
        subsection (a) with respect to an individual who places in 
        service a qualified vehicle, no credit shall be allowed with 
        respect to any other vehicle placed in service by such 
        individual.
            ``(2) Basis reduction.--The basis of any property for which 
        a credit is allowed under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(3) Election not to 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 vehicles.
            ``(4) No double benefit.--The amount of any deduction or 
        other credit allowable under this chapter with respect to a 
        vehicle shall be reduced by the amount of credit allowed under 
        subsection (a) for such vehicle for the taxable year.
            ``(5) Property used outside united states, etc., not 
        qualified.--No credit shall be allowed under subsection (a) 
        with respect to any property referred to in section 50(b) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
    ``(e) Termination.--This section shall not apply to any vehicle 
purchased more than 180 days after the date of the enactment of this 
Act.''.
    (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 
items:

``Sec. 25E. American-made automobile credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property purchased after the date of the enactment of this Act 
for taxable years beginning after such date.
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