[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2069 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2069

To amend the Internal Revenue Code of 1986 to provide a credit for the 
                    purchase of new motor vehicles.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 23, 2009

 Mr. Hoekstra 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 a credit for the 
                    purchase of new motor vehicles.

    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 ``Credit for New Cars Act of 2009''.

SEC. 2. CREDIT FOR NEW MOTOR VEHICLE PURCHASES.

    (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 adding at the end the following new section:

``SEC. 30E. NEW MOTOR VEHICLES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to $3,000 with respect to each qualified motor vehicle placed in 
service by the taxpayer during the taxable year.
    ``(b) Limitation on Value of Vehicles Taken Into Account.--No 
credit shall be allowed under subsection (a) with respect to any 
vehicle the fair market value of which equals or exceeds $40,000 
(determined immediately before such vehicle is placed in service by the 
taxpayer).
    ``(c) Limitations With Respect to Business Credit.--
            ``(1) 50 percent of credit allowed.--50 percent of so much 
        of the credit which would be allowed under subsection (a) for 
        any taxable year (determined without regard to this subsection) 
        that is attributable to qualfied motor vehicles of a character 
        subject to an allowance for depreciation shall be treated as a 
        credit listed in section 38(b) for such taxable year (and not 
        allowed under subsection (a)).
            ``(2) Not more than 2 vehicles taken into account.--Not 
        more than 2 qualified motor vehicles may be taken into account 
        under paragraph (1).
            ``(3) Aggregation rule.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52, or 
        subsection (m) or (o) of section 414, shall be treated as one 
        person for purposes of the credit determined under this 
        subsection.
    ``(d) Personal Credit.--
            ``(1) In general.--For purposes of this title, the credit 
        allowed under subsection (a) for any taxable year (determined 
        without regard ot any qualified motor vehicle of a character 
        subject to an allowance for depreciation) shall be treated as a 
        credit allowable under subpart A for such taxable year.
            ``(2) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for any taxable year 
        (determined without regard ot any qualified motor vehicle of a 
        character subject to an allowance for depreciation) shall not 
        exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under 
                subpart A (other than this section and sections 23, 
                25D, 30, and 30D) and section 27 for the taxable year.
    ``(e) Qualified Motor Vehicle.--For purposes of this section--
            ``(1) In general.--The term `qualified motor vehicle' means 
        a motor vehicle--
                    ``(A) the original use of which commences with the 
                taxpayer,
                    ``(B) which is acquired for use or lease by the 
                taxpayer and not for resale, and
                    ``(C) which is made by a manufacturer,
                    ``(D) the final assembly of which is in the United 
                States,
                    ``(E) which is treated as a motor vehicle for 
                purposes of title II of the Clean Air Act, and
                    ``(F) which has a gross vehicle weight rating of 
                not more than 8,500 pounds.
            ``(2) Motor vehicle; manufacturer.--The terms `motor 
        vehicle' and `manufacturer' have the meaning given such terms 
        in section 30D(d).
    ``(f) Special Rules.--For purposes of this section--
            ``(1) 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 (determined without regard to subsections (c) and (d)).
            ``(2) No double benefit.--The amount of any deduction or 
        other credit allowable under this chapter for a qualified motor 
        vehicle shall be reduced by the amount of credit allowed under 
        subsection (a) for such vehicle (determined without regard to 
        subsections (c) and (d)).
            ``(3) 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 subsections (c) and (d)). 
        Property to which this paragraph applies shall be treated for 
        purposes of subsections (c) and (d) as property of a character 
        subject to an allowance for depreciation.
            ``(4) Property used outside united states not qualified.--
        No credit shall be allowable under subsection (a) with respect 
        to any property referred to in section 50(b)(1).
            ``(5) 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.
            ``(6) 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.
            ``(7) 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.
    ``(g) Termination.--No credit shall be allowed under this section 
with respect to any vehicle placed in service after December 31, 
2009.''.
    (b) Credit Made Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (34), 
by striking the period at the end of paragraph (35) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(36) the portion of the new motor vehicle credit to which 
        section 30E(c) applies.''.
    (c) Conforming Amendments.--
            (1)(A) Section 24(b)(3)(B) of such Code is amended by 
        striking ``and 30D'' and inserting ``30D, and 30E''.
            (B) Section 25(e)(1)(C)(ii) of such Code is amended by 
        inserting ``30E,'' after ``30D,''.
            (C) Section 25B(g)(2) of such Code is amended by striking 
        ``and 30D'' and inserting ``, 30D, and 30E''.
            (D) Section 26(a)(1) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (E) Section 904(i) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (F) Section 1400C(d)(2) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (2) Section 1016(a) of such Code 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 30E(f)(1).''.
            (3) Section 6501(m) of such Code is amended by inserting 
        ``30E(f)(6),'' after ``30D(e)(4),''.
            (4) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 30E. New motor vehicles.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to vehicles acquired after December 31, 2008, in taxable years 
ending after such date.
    (e) Application of EGTRRA Sunset.--The amendment made by subsection 
(c)(1)(A) shall be subject to title IX of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 in the same manner as the provision 
of such Act to which such amendment relates.
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