[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3715 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3715

   To amend the Internal Revenue Code of 1986 to modify certain tax 
 incentives for alternative vehicles, to establish a battery insurance 
    program within the Department of Energy, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 5, 2010

Ms. Stabenow (for herself, Ms. Cantwell, Mrs. McCaskill, and Mr. Brown 
   of Ohio) 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 modify certain tax 
 incentives for alternative vehicles, to establish a battery insurance 
    program within the Department of Energy, 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. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Charging America 
Forward Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Extension and modification of new qualified hybrid motor 
                            vehicle credit.
Sec. 3. Extension of alternative fuel vehicle refueling property 
                            credit.
Sec. 4. Transferability of credit for new qualified plug-in electric 
                            drive motor vehicles.
Sec. 5. Recovery period for depreciation of smart meters and smart grid 
                            systems.
Sec. 6. Energy investment credits for certain used energy storage 
                            property.
Sec. 7. Nonbusiness energy property credit for certain residential 
                            energy storage property.

SEC. 2. 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. 3. EXTENSION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY 
              CREDIT.

    (a) In General.--Subsection (g) of section 30C of the Internal 
Revenue Code of 1986 is amended by striking ``placed in service--'' and 
all that follows and inserting ``placed in service after December 31, 
2014''.
    (b) Increased Credit.--
            (1) Credit percentage.--Subsection (a) of section 30C of 
        the Internal Revenue Code of 1986 is amended by striking ``30 
        percent'' and inserting ``50 percent''.
            (2) Dollar limitations.--Subsection (b) of section 30C of 
        such Code is amended--
                    (A) by striking ``$30,000'' in paragraph (1) and 
                inserting ``$50,000'',
                    (B) by striking ``depreciation, and'' in paragraph 
                (1) and inserting ``depreciation which is not described 
                in paragraph (2),'',
                    (C) by redesignating paragraph (2) as paragraph 
                (3),
                    (D) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) the greater of--
                    ``(A) $50,000, or
                    ``(B) $10,000 for each single charging device 
                designed to recharge a motor vehicle propelled by 
                electricity,
        in the case of any property relating to electricity, and'', and
                    (E) by striking ``$1,000'' in paragraph (3), as 
                redesignated by subparagraph (C), and inserting 
                ``$2,000''.
            (3) Conforming amendment.--Subparagraph (A) of section 
        30C(e)(6) of such Code is amended by inserting ``and which is 
        placed in service before the date of the enactment of paragraph 
        (7)'' after ``hydrogen''.
    (c) Treatment of Personal Credit.--
            (1) In general.--Paragraph (2) of section 30C(d) of the 
        Internal Revenue Code of 1986 is amended to read as follows:
            ``(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 25D and 30D) and section 27 for the 
                        taxable year.''.
            (2) Conforming amendment.--Clause (ii) of section 
        30D(c)(2)(B) is amended by striking ``section 25D'' and 
        inserting ``sections 25D and 30C''.
    (d) Treatment of Property Used by Tax-Exempt Entity.--Paragraph (2) 
of section 30C(e) of the Internal Revenue Code of 1986 is amended by 
striking the last sentence.
    (e) Joint Ownership of Electric Vehicle Recharging Property.--
Subsection (e) of section 30C of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new paragraph:
            ``(7) Joint ownership of electric vehicle recharging 
        property.--
                    ``(A) In general.--Any property relating to 
                electricity shall not fail to be treated as qualified 
                alternative fuel vehicle refueling property solely 
                because such property is placed in service with respect 
                to 2 or more dwelling units.
                    ``(B) Limits applied separately.--In the case of 
                any qualified alternative fuel vehicle refueling 
                property relating to electricity which is placed in 
                service with respect to 2 or more dwelling units, this 
                section (other than this subparagraph) shall be applied 
                separately with respect to the portion of such property 
                attributable to each such dwelling unit.''.
    (f) Definition of Alternative Fuel Vehicle Refueling Property in 
the Case of Electricity.--
            (1) In general.--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.''.
            (2) Building components.--Subsection (d) of section 179A of 
        such Code is amended by inserting ``, except for property 
        described in paragraph (3)(B),'' after ``not including a 
        building and''.
    (g) 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. 4. TRANSFERABILITY OF CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC 
              DRIVE MOTOR VEHICLES.

    (a) In General.--Subsection (c) of section 30D of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(3) Refundable 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) and 
                without regard to paragraph (2)(B)) shall be treated as 
                a credit allowable under subpart C for such taxable 
                year (and not allowed under subsection (a)), and 
                paragraph (2) shall not apply to such credit.
                    ``(B) Refundable credit may be transferred.--
                            ``(i) In general.--A taxpayer may, in 
                        connection with the purchase of a new qualified 
                        plug-in electric drive motor vehicle, transfer 
                        any refundable credit described in subparagraph 
                        (A)--
                                    ``(I) to any person who is in the 
                                trade or business of selling new 
                                qualified plug-in electric drive motor 
                                vehicles and who sold such vehicle to 
                                the taxpayer, or
                                    ``(II) to any person who is in the 
                                trade or business of financing the 
                                sales of new qualified plug-in electric 
                                drive motor vehicles and who financed 
                                the taxpayer's purchase of such 
                                vehicle.
                            ``(ii) Disclosure.--A taxpayer may transfer 
                        a refundable credit described in subparagraph 
                        (A) to a person described in clause (i)(I) only 
                        if such person clearly discloses to such 
                        taxpayer, through the use of a window sticker 
                        attached to the new qualified plug-in electric 
                        drive motor vehicle--
                                    ``(I) the amount of the refundable 
                                credit described in subparagraph (A) 
                                with respect to such vehicle, and
                                    ``(II) a notification that the 
                                taxpayer will not be eligible for any 
                                credit under any other section of this 
                                title with respect to such vehicle 
                                unless the taxpayer elects not to have 
                                this section apply with respect to such 
                                vehicle.
                            ``(iii) Certification.--A transferee of a 
                        refundable credit described in subparagraph (A) 
                        may not claim such credit unless such claim is 
                        accompanied by a certification to the Secretary 
                        that the transferee reduced the price the 
                        taxpayer paid or the balance due to the 
                        financier, whichever is applicable, for the new 
                        qualified plug-in electric drive motor vehicle 
                        by the entire amount of such refundable credit.
                            ``(iv) Consent required for revocation.--
                        Any transfer under clause (i) may be revoked 
                        only with the consent of the Secretary.
                            ``(v) Regulations.--The Secretary may 
                        prescribe such regulations as necessary--
                                    ``(I) to ensure that any refundable 
                                credit described in clause (i) is 
                                claimed once and not retransferred by a 
                                transferee, and
                                    ``(II) to provide a mechanism by 
                                which the transferee may claim and 
                                receive the credit within 3 months of 
                                the sale of the new qualified plug-in 
                                electric drive motor vehicle.''.
    (b) Display of Credit Information.--Section 32908(b)(1) of title 
49, United States Code, is amended--
            (1) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), and
            (2) by inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) the amount of the new qualified plug-in 
                electric drive motor vehicle credit allowable with 
                respect to the sale of the automobile under section 30D 
                of the Internal Revenue Code of 1986 (26 U.S.C. 
                30D).''.
    (c) 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. 5. RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS AND SMART GRID 
              SYSTEMS.

    (a) In General.--Subparagraph (B) of section 168(e)(3) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of clause (vi), by striking the period at the end of clause (vii) and 
inserting ``, and'', and by adding at the end the following new 
clauses:
                            ``(viii) any qualified smart electric 
                        meter, and
                            ``(ix) any qualified smart electric grid 
                        system.''.
    (b) Conforming Amendments.--Subparagraph (D) of section 168(e)(3) 
of the Internal Revenue Code of 1986 is amended by inserting ``and'' at 
the end of clause (i), by striking the comma at the end of clause (ii) 
and inserting a period, and by striking clauses (iii) and (iv).
    (c) 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. 6. ENERGY INVESTMENT CREDITS FOR CERTAIN USED ENERGY STORAGE 
              PROPERTY.

    (a) 50 Percent Credit Allowed.--Subparagraph (A) of section 
48(a)(2) of the Internal Revenue Code of 1986 is amended--
            (1) by redesignating clause (ii) as clause (iii),
            (2) by inserting ``or (ii)'' after ``clause (i)'' in clause 
        (iii), as so redesignated, and
            (3) by inserting after clause (i) the following new clause:
                            ``(ii) 50 percent in the case of qualified 
                        used energy storage property which is not 
                        described in subsection (c)(5)(B), and''.
    (b) 30 Percent Credit for Certain Energy Storage Property Used for 
Onsite Storage.--Clause (i) of section 48(a)(2)(A) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of subclause (III), and
            (2) by adding at the end the following new subclause:
                                    ``(V) qualified used energy storage 
                                property described in subsection 
                                (c)(5)(B),''.
    (c) Qualified Used Energy Storage Property.--Subsection (c) of 
section 48 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph:
            ``(5) Qualified used energy storage property.--The term 
        `qualified used energy storage property' means pre-owned 
        advanced large format automotive propulsion battery cells 
        previously used in a qualified plug-in electric drive motor 
        vehicle (as defined in section 30D(d)) which are reconditioned 
        into--
                    ``(A) property--
                            ``(i) which is designed to receive 
                        electrical energy, to store such energy, to 
                        convert such energy to electricity, and to 
                        deliver such electricity for support to the 
                        transmission or distribution grid or for sale 
                        to unrelated parties,
                            ``(ii) which has the ability to store in 
                        the aggregate not less than 50 kilowatt hours 
                        of energy,
                            ``(iii) which has the ability to attain a 
                        peak power output of 20 kilowatts, or
                    ``(B) property--
                            ``(i) which--
                                    ``(I) is primarily designed and 
                                used to receive and store intermittent 
                                renewable energy generated on-site and 
                                to deliver such energy for primarily 
                                on-site consumption, or
                                    ``(II) provides supplemental energy 
                                to reduce peak energy requirements on-
                                site,
                            ``(ii) which has the ability to store the 
                        energy equivalent of not less than 20 kilowatt 
                        hours of energy, and
                            ``(iii) which has the ability to maintain 
                        an output of the energy equivalent of not less 
                        than 5 kilowatt hours of electricity for a 
                        period of not less than 4 hours.
                Such term may include property described in 
                subparagraph (B) which is used to charge plug-in or 
                hybrid electric vehicles if such vehicles are equipped 
                with smart grid services which control time-of-day 
                charging and discharging of such vehicles, but shall 
                not include any property for which any other credit is 
                allowed under this chapter.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, under 
rules similar to the rules of section 48(m) of the Internal Revenue 
Code of 1986 (as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990).

SEC. 7. NONBUSINESS ENERGY PROPERTY CREDIT FOR CERTAIN RESIDENTIAL 
              ENERGY STORAGE PROPERTY.

    (a) Credit Allowed.--
            (1) In general.--Subsection (a) of section 25C of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (1),
                    (B) by striking ``expenditures paid or incurred'' 
                and all that follows in paragraph (2) and inserting 
                ``expenditures, other than expenditures for qualified 
                used energy storage property described in subsection 
                (d)(7), paid or incurred by the taxpayer during such 
                taxable year, and'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) 50 percent of the amount of the residential energy 
        property expenditures for qualified used energy storage 
        property described in subsection (d)(7) paid or incurred by the 
        taxpayer during such taxable year.''.
            (2) Qualified energy property.--Subparagraph (A) of section 
        25C(d)(2) of such Code is amended--
                    (A) by striking ``or'' at the end of clause (ii),
                    (B) by striking the period at the end of clause 
                (iii) and inserting ``, or'', and
                    (C) by adding at the end the following new clause:
                            ``(iv) qualified used energy storage 
                        property.''.
    (b) Property Described.--Subsection (d) of section 25C of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(7) Qualified used energy storage property.--The term 
        `qualified used energy storage property' means property which 
        is comprised of reconditioned pre-owned advanced large format 
        automotive propulsion battery cells previously used in a 
        qualified plug-in electric drive motor vehicle (as defined in 
        section 30D(d)) and which--
                    ``(A) is primarily designed and used to receive and 
                store intermittent renewable energy generated on-site 
                and to deliver such energy for primarily on-site 
                consumption,
                    ``(B) provides supplemental energy to reduce peak 
                energy requirements on-site, or
                    ``(C) provides propulsion power for non-highway 
                mobile applications for neighborhood or interior use.
        Such term may include property described in subparagraph (B) 
        which is used to charge plug-in or hybrid electric vehicles if 
        such vehicles are equipped with smart grid services which 
        control time-of-day charging and discharging of such vehicles, 
        but shall not include any property for which any other credit 
        is allowed under this chapter.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
                                 <all>