I 111th CONGRESS 2d Session H. R. 5705 IN THE HOUSE OF REPRESENTATIVES July 1, 2010 Mr. Ryan of Ohio (for himself and Ms. Sutton) 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 increase the credit amount for 2- and 3-wheeled electric highway vehicles, and for other purposes.

1.

Short title

This Act may be cited as the Electric Vehicle Advancement Act of 2010.

2.

Increase in credit amount for 2- and 3-Wheeled electric highway vehicles

(a)

In general

Subsections (a) and (b) of section 30 of the Internal Revenue Code of 1986 are amended to read as follows: (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— (1)in the case of any qualified plug-in electric vehicle placed in service by the taxpayer during the taxable year which is a 2- or 3-wheeled vehicle described in subsection (d)(3), the sum of— (A)$1,000, (B)in the case of a vehicle which draws propulsion energy from a battery with not less than 2.5 kilowatt hours of capacity, $417, plus $417 for each kilowatt hour of capacity in excess of 2.5 kilowatt hours, plus (C)in the case of a vehicle which achieves at least 75 miles per gallon equivalent, $2,000, and (2)in the case of any other qualified plug-in electric vehicle placed in service by the taxpayer during the taxable year, 10 percent of the cost of such vehicle. (b)

Dollar limitations

(1)

Battery capacity for 2- and 3-wheeled vehicles

The amount allowed under subsection (a)(1) with respect to any vehicle by reason of subparagraph (B) thereof shall not exceed $5,500. (2)

Total

The amount allowed under subsection (a)(1) with respect to any vehicle shall not exceed $7,500. (3)

Other qualified plug-in electric vehicles

The amount of the credit allowed under subsection (a)(2) with respect to any vehicle shall not exceed $2,500. . (b)

2- or 3-Wheeled motor vehicles described

Subsection (d) of section 30 of such Code is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively, and by inserting after paragraph (2) the following new paragraph: (3)

2- or 3-wheeled motor vehicle

A 2- or 3-wheeled vehicle described in this paragraph is a specified vehicle described in paragraph (2)(B)— (A)with motive power having a seat, seats, or saddle for the use of the rider or riders and designed to travel on not more than 3 wheels in contact with the ground, (B)which has an electric motor that produces in excess of 5-brake horsepower, (C)which draws propulsion from 1 or more traction batteries, and (D)which has been certified to the Department of Transportation pursuant to section 567 of title 49, Code of Federal Regulations, in effect on the date of the manufacture of the vehicle. . (c)

Miles per gallon equivalent

Subsection (d) of section 30 of such Code, as amended by subsection (b), is amended by adding at the end the following new paragraph: (6)

Miles per gallon equivalent

For purposes of this section, the miles per gallon equivalent with respect to any vehicle shall be the combined fuel economy with respect to such vehicle, as determined under section 136(a)(2)(B) of the Energy Independence and Security Act of 2007. . (d)

Limitation on number of 2- and 3-Wheeled vehicles eligible for credit

Section 30 of such Code is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: (e)

Limitation on number of 2- and 3-Wheeled vehicles eligible for credit

(1)

In general

In the case of a 2- or 3-wheeled electric vehicles described in subsection (d)(3) which are sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed. (2)

Phaseout period

For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of 2- or 3-wheeled electric vehicles described in subsection (d)(3) manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after the date of the enactment of this section is at least 100,000. (3)

Applicable percentage

For purposes of paragraph (1), the applicable percentage is— (A)50 percent for the first 2 calendar quarters of the phaseout period, (B)25 percent for the 3d and 4th calendar quarters of the phaseout period, and (C)0 percent for each calendar quarter thereafter. (4)

Controlled groups

Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection. . (e)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.