I 111th CONGRESS 1st Session H. R. 2285 IN THE HOUSE OF REPRESENTATIVES May 6, 2009 Mr. Peters 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 business credit for the acquisition of fleet vehicles.

1.

Short title

This Act may be cited as the Vehicle Efficiency Heightening Investment Credit to Lift our Economy Act of 2009.

2.

Credit for fleet vehicles

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 45Q the following new section:

45R.

Fleet vehicles

(a)

Allowance of credit

(1)

In general

There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable amount with respect to each fleet vehicle placed in service by the taxpayer during the taxable year. (2)

Applicable amount

For purposes of paragraph (1), the applicable amount is— (A)$4,000 for a fleet vehicle which is— (i)a passenger automobile that— (I)is assembled in the United States, and (II)has a highway label fuel economy value of 27 miles per gallon or greater but less than 30 miles per gallon, (ii)a passenger automobile that— (I)is assembled in North America, and (II)has a highway label fuel economy value of 30 miles per gallon or greater, or (iii)a nonpassenger automobile that— (I)is assembled in the United States, and (II)has a highway label fuel economy value of 24 miles per gallon or greater, (B)$5,000 for a fleet vehicle which is— (i)a passenger automobile that— (I)is assembled in the United States, and (II)has a highway label fuel economy value of 30 miles per gallon or greater, or (ii)a work truck that is assembled in the United States and registered by the dealer as a registered work truck, or (C)$3,000 for a fleet vehicle which is— (i)a nonpassenger automobile that— (I)is assembled in North America, and (II)has a highway label fuel economy value of 24 miles per gallon or greater. (b)

Limitation

Not more than 15 fleet vehicles may be taken into account under subsection (a) for a taxable year. (c)

Definitions

For purposes of this section— (1)

Fleet vehicle

The term fleet vehicle means a motor vehicle— (A)which is a passenger automobile, nonpassenger automobile, or work truck, (B)the original use of which commences with the taxpayer, (C)which is acquired for use or lease by the taxpayer and not for resale, (D)which is property of a character subject to an allowance for depreciation, and (E)which is made by a manufacturer. (2)

Automobile; passenger automobile; work truck

The terms automobile, passenger automobile, and work truck have the meanings given such terms in section 32901(a) of title 49, United States Code. (3)

Nonpassenger automobile

The term nonpassenger automobile means an automobile classified as a light truck under part 523 of title 49, Code of Federal Regulations, and is not a work truck. (4)

Highway label fuel economy value

The term highway label fuel economy value means the number, expressed in miles per gallon, centered directly below the words Highway MPG on the label required to be affixed or caused to be affixed on a new automobile pursuant to subpart D of part 600 of title 40, Code of Federal Regulations. (5)

Motor vehicle

The term motor vehicle means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. (d)

Special rules

For purposes of this section— (1)

Related person

(A)

In general

The taxpayer and any person related to the taxpayer shall be treated as one person. (B)

Related person defined

A person (hereinafter in this paragraph referred to as the related person) is related to any other person if— (i)the related person bears a relationship to such person specified in section 267(b) or section 707(b)(1), or (ii)the related person and such person are engaged in trades or business under common control (within the meaning of subsections (a) and (b) of section 52). For purposes of subparagraph (A), in applying section 267(b) or 707(b)(1), 10 percent shall be substituted for 50 percent.(2)

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. (3)

Applicable rules

For purposes of this section, rules similar to the rules of paragraphs (5), (6), (7), (8), and (9) of section 30B(h) shall apply. (e)

Termination

This section shall not apply to any property purchased after December 31, 2010.

. (b)

Credit To be part of business credit

Section 38(b) 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: (36)the fleet vehicle credit determined under section 45R(a). . (c)

Basis

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 45R(d)(2). . (d)

Conforming amendments

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 45Q the following new item: Sec. 45R. Fleet vehicles. . (e)

Effective date

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