II 110th CONGRESS 2d Session S. 3025 IN THE SENATE OF THE UNITED STATES May 15, 2008 Mr. Thune 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 allow a credit against tax for the purchase of a flexible fuel vehicle.

1.

Short title

This Act may be cited as the Flex Fuel for All Americans Act.

2.

Flexible fuel motor vehicle credit

(a)

Allowance of credit

(1)

In general

Section 30B of the Internal Revenue Code of 1986 is amended by redesignating subsections (i) and (j) as subsections (j) and (k), respectively, and by inserting after subsection (h) the following new subsection: (i)

New qualified flexible fuel motor vehicle credit

(1)

In general

The new qualified flexible fuel motor vehicle credit determined under this subsection is an amount equal to $1,000 for each new qualified flexible fuel motor vehicle placed in service by the taxpayer during the taxable year. (2)

Increased amount for optimum flexible fuel vehicles

In the case of a new qualified flexible fuel motor vehicle which is an optimum flexible fuel vehicle, the dollar amount in effect under paragraph (1) shall be increased by $500. (3)

New qualified flexible fuel motor vehicle

For purposes of this subsection, the term new qualified flexible fuel motor vehicle means any motor vehicle— (A)which is capable of operating on— (i)both gasoline and either— (I)a blend of 85 percent ethanol fuel and 15 percent gasoline, or (II)a blend of 85 percent methanol fuel and 15 percent gasoline, or (ii)both diesel fuel and a blend of 20 percent biodiesel and 80 percent diesel fuel, (B)the original use of which commences with the taxpayer, (C)which is acquired by the taxpayer for use or lease, but not for resale, and (D)which is made by a manufacturer. (4)

Optimum flexible fuel vehicle

For purposes of this subsection, the term optimum flexible fuel vehicle means a new qualified flexible fuel motor vehicle which is certified by the Environmental Protection Agency— (A)in the case of a motor vehicle described in paragraph (3)(A)(i), to achieve an efficiency (determined in miles per gallon) when using a blend described in subclause (I) or (II) of paragraph (3)(A)(i) equal to or greater than the efficiency achieved by such vehicle when using gasoline alone, and (B)in the case of a motor vehicle described in paragraph (3)(A)(ii), to achieve an efficiency (determined in miles per gallon) when using a blend described in paragraph (3)(A)(ii) equal to or greater than the efficiency achieved by such vehicle when using diesel fuel alone. . (2)

Conforming amendment

Section 30B(a) of such Code is amended by striking and at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting , and, and by adding at the end the following new paragraph: (5)the new qualified flexible fuel motor vehicle credit determined under subsection (i). . (b)

Termination

Subsection (k) of section 30B of the Internal Revenue Code of 1986, as redesignated by subsection (a), is amended by striking and and the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting , and, and by adding at the end the following new paragraph: (5)in the case of a new qualified flexible fuel motor vehicle (as described in subsection (i)), December 31, 2015. . (c)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2008, in taxable years ending after such date.