[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2854 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 2854

  To amend the Internal Revenue Code of 1986 to extend and modify the 
credit for new qualified hybrid motor vehicles, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 9, 2009

  Mr. Kohl (for himself and Mr. Hatch) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to extend and modify the 
credit for new qualified hybrid motor vehicles, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXTENSION AND MODIFICATION OF NEW QUALIFIED HYBRID MOTOR 
              VEHICLE CREDIT.

    (a) Extension.--Paragraph (3) of section 30B(k) of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2009'' and 
inserting ``December 31, 2014''.
    (b) Qualified Incremental Hybrid Cost.--Clause (iii) of section 
30B(d)(2)(B) of the Internal Revenue Code of 1986 is amended by 
striking ``does not exceed--'' and all that follows and inserting the 
following: ``does not exceed--
                                    ``(I) $15,000, if such vehicle has 
                                a gross vehicle weight rating of not 
                                more than 14,000 pounds;
                                    ``(II) $30,000, if such vehicle has 
                                a gross vehicle weight rating of more 
                                than 14,000 pounds but not more than 
                                26,000 pounds;
                                    ``(III) $60,000, if such vehicle 
                                has a gross vehicle weight rating of 
                                more than 26,000 pounds but not more 
                                than 33,000 pounds; and
                                    ``(IV) $100,000, if such vehicle 
                                has a gross vehicle weight rating more 
                                than 33,000 pounds.''.
    (c) Applicable Percentage for Heavy Trucks Achieving 20 Percent 
Increase in City Fuel Economy.--Clause (ii) of section 30B(d)(2)(B) of 
the Internal Revenue Code of 1986 is amended by redesignating 
subclauses (I), (II), and (III) as subclauses (II), (III), and (IV), 
respectively, and by inserting before subclause (II) (as so 
redesignated) the following new subclause:
                                    ``(I) 10 percent in the case of a 
                                vehicle to which clause (iii)(IV) 
                                applies if such vehicle achieves an 
                                increase in city fuel economy relative 
                                to a comparable vehicle of at least 20 
                                percent but less than 30 percent.''.
    (d) Dollar Limitation.--Subparagraph (B) of section 30B(d)(2) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new clause:
                            ``(vi) Limitation.--The amount allowed as a 
                        credit under subsection (a)(3) with respect to 
                        a vehicle by reason of clause (i) of this 
                        subparagraph shall not exceed $24,000.''.
    (e) Heavy Electric Vehicles.--Paragraph (3) of section 30B(d) of 
the Internal Revenue Code of 1986 is amended by redesignating 
subparagraphs (B), (C), and (D) as subparagraphs (C), (D), and (E), 
respectively, and by inserting after subparagraph (A) the following new 
subparagraphs:
                    ``(B) Heavy electric vehicles.--In the case of a 
                vehicle with a gross vehicle weight rating of not less 
                than 8,500 pounds, the term `new qualified hybrid motor 
                vehicle' includes a motor vehicle--
                            ``(i) which draws propulsion energy 
                        exclusively from a rechargeable energy storage 
                        system; and
                            ``(ii) which meets the requirements of 
                        clauses (iii), (v), (vi), and (vii) of 
                        subparagraph (A).''.
    (f) Credits May Be Transferred.--Subsection (d) of section 30B of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(4) Transferability of credit.--
                    ``(A) In general.--A taxpayer who places in service 
                any vehicle may transfer the credit allowed under this 
                subsection with respect to such vehicle through an 
                assignment to the seller of such vehicle. Such transfer 
                may be revoked only with the consent of the Secretary.
                    ``(B) Regulations.--The Secretary shall prescribe 
                such regulations as necessary to ensure that any credit 
                transferred under subparagraph (A) is claimed once and 
                not reassigned by such other person.''.
    (g) Effective Date.--The amendments made by this section shall 
apply to vehicles acquired after December 31, 2009.

SEC. 2. EXTENSION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY 
              CREDIT.

    (a) In General.--Paragraph (2) of section 30C(g) of the Internal 
Revenue Code of 1986 is amended by striking ``2010'' and inserting 
``2013''.
    (b) Extension of Increased Credit.--Paragraph (6) of section 30C(e) 
of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``2011'' and inserting ``2014''; and
            (2) by striking ``2009 and 2010'' in the heading and 
        inserting ``2009 through 2013''.
    (c) Definition of Alternative Fuel Vehicle Refueling Property in 
the Case of Electricity.--Subparagraph (B) of section 179A(d)(3) of the 
Internal Revenue Code of 1986 is amended to read as follows:
                    ``(B) for the recharging of motor vehicles 
                propelled by electricity, including electrical panel 
                upgrades, wiring, conduit, trenching, pedestals, and 
                related equipment.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 3. TAX CREDIT FOR ELECTRIFICATION TECHNOLOGIES TO REDUCE TRUCK 
              IDLING.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45R. IDLING REDUCTION CREDIT.

    ``(a) General Rule.--For purposes of section 38, the idling 
reduction tax credit determined under this section for the taxable year 
is an amount equal to 50 percent of the amount paid or incurred for the 
purchase and installation of each qualifying idling reduction device or 
qualifying idle reduction infrastructure placed in service by the 
taxpayer during the taxable year.
    ``(b) Limitation.--The maximum amount allowed as a credit under 
subsection (a) shall not exceed $3,500 per device or per qualifying 
infrastructure.
    ``(c) Definitions.--For purposes of subsection (a)--
            ``(1) Qualifying idling reduction device.--The term 
        `qualifying idling reduction device' means any device or system 
        of devices which--
                    ``(A) is installed on a heavy-duty diesel powered 
                on-highway vehicle;
                    ``(B) is designed to provide to such vehicle those 
                services (such as heat, air conditioning, or 
                electricity) that would otherwise require the operation 
                of the main drive engine while the vehicle is 
                temporarily parked or remains stationary using either--
                            ``(i) an all electric unit, such as a 
                        battery powered unit or from grid-supplied 
                        electricity; or
                            ``(ii) a dual fuel unit powered by diesel 
                        or other fuels, and capable of providing such 
                        services from grid-supplied electricity or on-
                        truck batteries alone;
                    ``(C) the original use of which commences with the 
                taxpayer;
                    ``(D) is acquired for use by the taxpayer; and
                    ``(E) is certified by the Secretary of Energy, in 
                consultation with the Administrator of the 
                Environmental Protection Agency and the Secretary of 
                Transportation, to reduce long-duration idling of such 
                vehicle at a motor vehicle rest stop or other location 
                where such vehicles are temporarily parked or remain 
                stationary.
            ``(2) Heavy-duty diesel-powered on-highway vehicle.--The 
        term `heavy-duty diesel-powered on-highway vehicle' means any 
        vehicle, machine, tractor, trailer, or semi-trailer propelled 
        or drawn by mechanical power and used upon the highways in the 
        transportation of passengers or property, or any combination 
        thereof determined by the Federal Highway Administration.
            ``(3) Long duration idling.--The term `long duration 
        idling' means the operation of a main drive engine, for a 
        period greater than 15 consecutive minutes, where the main 
        drive engine is not engaged in gear. Such term does not apply 
        to routine stoppages associated with traffic movement or 
        congestion.
            ``(4) Qualifying idle reduction infrastructure.--The term 
        `qualifying idle reduction infrastructure' means off-truck 
        equipment--
                    ``(A) which is to be used exclusively with respect 
                to vehicles with a gross vehicle weight rating of 
                14,000 pounds or greater; and
                    ``(B) which either--
                            ``(i) is used to supply electric power, 
                        including electric receptacles, boxes, wiring, 
                        conduit, and other connections to one truck 
                        space; or
                            ``(ii) directly provides air conditioning, 
                        heating, electric power, and other connections 
                        and services to one truck space.
    ``(d) No Double Benefit.--For purposes of this section--
            ``(1) Reduction in basis.--If a credit is determined under 
        this section with respect to any property by reason of 
        expenditures described in subsection (a), the basis of such 
        property shall be reduced by the amount of the credit so 
        determined.
            ``(2) Other deductions and credits.--No deduction or credit 
        shall be allowed under any other provision of this chapter with 
        respect to the amount of the credit determined under this 
        section.
    ``(e) Election Not To Claim Credit.--This section shall not apply 
to a taxpayer for any taxable year if such taxpayer elects to have this 
section not apply for such taxable year.
    ``(f) Termination.--This section shall not apply to any property 
placed in service after December 31, 2013.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of the Internal Revenue Code of 1986 (relating to general 
business credit) 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 idling reduction tax credit determined under 
        section 45R(a).''.
    (c) Conforming Amendments.--
            (1) The table of sections for subpart D 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 45P 
        the following new item:

``Sec. 45R. Idling reduction credit.''.
            (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:
            ``(38) in the case of a facility with respect to which a 
        credit was allowed under section 45R, to the extent provided in 
        section 45R(d)(1).''.
            (3) Section 6501(m) of such Code is amended by inserting 
        ``45R(e),'' after ``45H(g),''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.
    (e) Determination of Certification Standards by Secretary of Energy 
for Certifying Idling Reduction Devices.--Not later than 6 months after 
the date of the enactment of this Act and in order to reduce air 
pollution and fuel consumption, the Secretary of Energy, in 
consultation with the Administrator of the Environmental Protection 
Agency and the Secretary of Transportation, shall publish the standards 
under which the Secretary, in consultation with the Administrator of 
the Environmental Protection Agency and the Secretary of 
Transportation, will, for purposes of section 45R of the Internal 
Revenue Code of 1986 (as added by this section), certify the idling 
reduction devices and idling reduction infrastructure which will reduce 
long duration idling of vehicles at motor vehicle rest stops or other 
locations where such vehicles are temporarily parked or remain 
stationary in order to reduce air pollution and fuel consumption.
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