I 111th CONGRESS 1st Session H. R. 1808 IN THE HOUSE OF REPRESENTATIVES March 31, 2009 Ms. Speier (for herself and Mr. Thompson of California) 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 provide for consumer rebates for purchases of certain new passenger motor vehicles.

1.

Short title

This Act may be cited as the Clean Car Rebate Act of 2009.

2.

Consumer rebate for purchases of certain new passenger motor vehicles

(a)

In general

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36 the following new section:

36A.

Consumer rebate for purchases of certain new passenger motor vehicles

(a)

In general

There shall be allowed as a credit against the tax imposed by this chapter for the taxable year the applicable amount for each qualified vehicle placed in service by the taxpayer in the taxable year. (b)

Applicable amount

For purposes of subsection (a)— (1)

2009

In the case of a taxable year beginning in 2009, the applicable amount shall be determined in accordance with the following table: If miles per gallon rating for the qualified vehicle for 2009 is:The applicable amount is: Less than 28 mpg$0 28 mpg or more but not more than 29 mpg$1,000 More than 29 mpg but not more than 30 mpg$1,500 More than 30 mpg but not more than 32 mpg$2,000 More than 32 mpg$2,500. (2)

2010

In the case of a taxable year beginning in 2010, the applicable amount shall be determined in accordance with the following table: If miles per gallon rating for the qualified vehicle for 2010 is:The applicable amount is: Less than 30 mpg0 30 mpg or more but not more than 31 mpg$1,000 More than 31 mpg but not more than 34 mpg$1,500 More than 34 mpg$2,500. (3)

After 2010

For taxable years beginning after December 31, 2010, the Secretary, in consultation with the Environmental Protection Agency, shall prescribe tables under which the applicable amount is determined in accordance with the following: (A)The applicable amount shall be determined in such a manner as to create substantial consumer demand by 2015 for new passenger motor vehicles with fuel economy that meets or exceeds the requirements of corporate average fuel economy for passenger automobiles pursuant to section 32902 of title 49, United States Code, otherwise required of manufacturers by 2020. (B)The aggregate amount of revenue foregone to the United States Treasury for any calendar year by reason of the credit allowable under this section for taxable years beginning in such calendar year does not exceed the sum of— (i)the aggregate amount of such revenue foregone under this section for taxable years beginning in calendar year 2009, plus (ii)10 percent of the amount determined under clause (i). (c)

Qualified vehicle

For purposes of this section, the term qualified vehicle means a motor vehicle— (1)which is subject to average fuel economy standards pursuant to section 32902 of title 49, United States Code, for passenger automobiles, (2)the original use of which commences with the taxpayer, (3)which is acquired for use or lease by the taxpayer and not for resale, and (4)which is made by a manufacturer. (d)

Other definitions and special rules

(1)

Miles per gallon rating

The term miles per gallon rating means the combined fuel economy estimates provided by the Environmental Protection Agency. (2)

Motor vehicle

The term motor vehicle has the meaning given such term by section 30(c)(2). (3)

Coordination with advance payments of credit

With respect to any taxable year, the amount which would (but for this paragraph) be allowed as a credit to the taxpayer under subsection (a) with respect to any qualified vehicle shall be reduced (but not below zero) by the aggregate amount paid to such taxpayer under section 6431 with respect to such vehicle. (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)

In general

Except as provided by subparagraph (B), the amount of any deduction or other credit allowable under this chapter for a qualified vehicle shall be reduced by the amount of credit allowed under subsection (a) for such vehicle for the taxable year. (B)

Coordination with sections 30B and 30D

Subparagraph (A) shall not apply to with respect to the credit allowed under section 30B or 30D and the credit allowed under subsection (a) with respect to a qualified vehicle shall be in addition to any credit allowed under section 30B or 30D with respect such vehicle. (6)

Property used by tax-exempt entity

In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (b)(2)). (7)

Property used outside 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. (8)

Recapture

The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit (including recapture in the case of a lease period of less than the economic life of a vehicle). (9)

Election to not 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. (10)

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)

Termination

This section shall not apply with respect to any property purchased after December 31, 2014.

. (b)

Advance payment of credit

Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

6431.

Consumer rebate for purchases of certain new passenger motor vehicles

(a)

General rule

Not later than 3 months after the date of the enactment of this section, the Secretary shall establish a program for making payments to certified individuals of the applicable amount with respect to a qualified vehicle. (b)

Certified individual

For purposes of this section, the term certified individual means any individual for whom a qualified passenger motor vehicle eligibility certificate is in effect. (c)

Qualified passenger motor vehicle eligibility certificate

For purposes of this section, the term qualified passenger motor vehicle eligibility certificate means any written statement that an individual is entitled to a credit under section 36A if such statement provides such information as the Secretary may require for purposes of this section. (d)

Timing of payments

The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this section as rapidly as possible. (e)

Regulations

The Secretary may issue such regulations or other guidance as may be necessary or appropriate to carry out this section, including the requirement to report information or the establishment of other methods for verifying the correct amounts of payments and credits under section 36A.

. (c)

Administrative amendments

(1)

Definition of deficiency

Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by inserting 36A, after 36, . (2)

Mathematical or clerical error authority

Section 6213(g)(2) of such Code is amended by striking and at the end of subparagraph (L), by striking the period at the end of subparagraph (M) and inserting , and, and by inserting after subparagraph (M) the following new subparagraph: (N)an omission of information required pursuant to section 36431(e) (relating to consumer rebate for purchases of certain new passenger motor vehicles). . (d)

Conforming and clerical amendments

(1)Section 1324(b)(2) of title 31, United States Code, is amended by inserting 36A, after 36,. (2)The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36 the following new item: Sec. 36A. Consumer rebate for purchases of certain new passenger motor vehicles. . (3)The table of sections for subchapter B of chapter 65 of such Code is amended by adding at the end the following new item: Sec. 6431. Consumer rebate for purchases of certain new passenger motor vehicles. . (e)

Effective date

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