I 111th CONGRESS 1st Session H. R. 550 IN THE HOUSE OF REPRESENTATIVES January 15, 2009 Mr. Manzullo (for himself and Mr. Upton) 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 individuals and businesses a temporary credit against income tax for the purchase of certain vehicles.

1.

Short title

This Act may be cited as the Get America Moving Again Act of 2009.

2.

Temporary credit for purchase of passenger vehicles

(a)

In general

Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 30D the following new section:

30E.

Temporary credit for purchase of passenger 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 the purchase price of any qualified passenger vehicle placed in service by the taxpayer during the taxable year. (b)

Maximum credit

(1)

New vehicles

In the case of each qualified passenger vehicle the original use of which begins with the taxpayer, the credit allowed by subsection (a) shall not exceed— (A)$5,000 in the case of a vehicle placed in service before January 1, 2010, and (B)$2,500 in the case of a vehicle placed in service during 2010. (2)

Used vehicles

In the case of each qualified passenger vehicle the original use of which does not begin with the taxpayer, the credit allowed by subsection (a) shall not exceed— (A)$2,000 in the case of a vehicle placed in service before January 1, 2010, and (B)$1,000 in the case of a vehicle placed in service during 2010. (c)

Limitation based on adjusted gross income

(1)

In general

In the case of a natural person, the amount allowable as credit under this section (without regard to this subsection) for any taxable year shall be reduced (but not below zero) by the amount which bears the same ratio to the amount so allowable as— (A)the excess (if any) 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. (2)

Modified adjusted gross income

For purposes of paragraph (1), 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. (d)

Qualified passenger vehicle

For purposes of this section— (1)

In general

The term qualified passenger vehicle means any motor vehicle (as defined by section 30(c)(2)) if— (A)the model year of such vehicle is (at the time such vehicle is placed in service by the taxpayer) not more than 3 years earlier than the most recent model year of such vehicle which is available for purchase, (B)such vehicle is acquired for use by the taxpayer and not for resale, (C)the amount paid by the taxpayer for such vehicle does not exceed $50,000, and (D)such vehicle has a gross vehicle weight rating of not more than 8,500 pounds. (2)

Determination of price

Rules similar to the rules of sections 4002(d) and 4003(c) shall apply. (e)

Application with other credits

(1)

Business credit treated as part of general business credit

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 property 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)

Personal credit

(A)

In general

For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. (B)

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 after application of paragraph (1)) shall not exceed the excess of— (i)the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over (ii)the sum of the credits allowable under subpart A (other than this section and sections 23, 25D, and 30D) and section 27 for the taxable year. (f)

Special rules

For purposes of this section— (1)

Basis reduction

The basis of any property for which is credit is allowed under this section shall be reduced by the amount of such credit. (2)

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. (g)

Application of section

This section shall apply to vehicles placed in service after the date of the enactment of this section and before January 1, 2011.

. (b)

Conforming amendments

(1)Paragraph (1) of section 26(a) of such Code is amended by striking and 30D and inserting 30D, and 30E. (2)Subsection (a) of section 1016 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 by section 30E(f)(1). . (3)The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 30D the following new item: Sec. 30E. Temporary credit for purchase of passenger vehicles.. (c)

Effective date

The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.