[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2161 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 2161

  To amend the Internal Revenue Code of 1986 to extend and modify the 
                  credit for certain plug-in vehicles.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 6, 2012

  Mr. Merkley 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 certain plug-in vehicles.

    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 CREDIT FOR CERTAIN PLUG-IN 
              VEHICLES.

    (a) Extension.--Subsection (f) of section 30 of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2011'' and 
inserting ``December 31, 2016''.
    (b) Modifications.--
            (1) Credit amount.--Section 30 of the Internal Revenue Code 
        of 1986 is amended by striking subsections (a) and (b) and 
        inserting the following:
    ``(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 sum of the credit amounts determined under subsection (b) 
with respect to each qualified plug-in electric vehicle placed in 
service by the taxpayer during the taxable year.
    ``(b) Per Vehicle Dollar Limitation.--
            ``(1) In general.--The amount determined under this 
        subsection with respect to any qualified plug-in electric 
        vehicle is the sum of the amounts determined under paragraphs 
        (2) and (3) with respect to such vehicle.
            ``(2) Base amount.--The amount determined under this 
        paragraph is $1,500.
            ``(3) Battery capacity.--In the case of a vehicle which 
        draws propulsion energy from a battery with not less than 5 
        kilowatt hours of capacity, the amount determined under this 
        paragraph is $417, plus $417 for each kilowatt hour of capacity 
        in excess of 5 kilowatt hours. The amount determined under this 
        paragraph shall not exceed $3,000.''.
            (2) Credit only to apply to 2 or 3 wheel vehicles.--
                    (A) In general.--Paragraph (2) of section 30(d) of 
                such Code is amended to read as follows:
            ``(2) Specified vehicle.--The term `specified vehicle' 
        means any vehicle which has 2 or 3 wheels.''.
                    (B) Increase in battery capacity.--Clause (i) of 
                section 30(d)(1)(F) of such Code is amended by striking 
                ``(2.5 kilowatt hours in the case of a vehicle with 2 
                or 3 wheels)''.
            (3) Credit for plug-in electric vehicles allowed for 
        vehicles with alternative electrical energy storage devices.--
                    (A) Credit allowed for new technology.--
                            (i) In general.--Subparagraph (F) of 
                        section 30(d)(1) of the Internal Revenue Code 
                        of 1986, as amended by paragraph (2), is 
                        amended--
                                    (I) by striking ``battery'' and 
                                inserting ``power source'', and
                                    (II) in clause (i), by inserting 
                                ``(or, in the case of a power source 
                                which is not a battery, the appropriate 
                                energy equivalent to such capacity, as 
                                determined by the Secretary)'' after 
                                ``4 kilowatt hours''.
                            (ii) Conforming amendment.--Subsection (d) 
                        of section 30 of such Code is amended by 
                        redesignating paragraph (4) as paragraph (5) 
                        and by inserting after paragraph (3) the 
                        following new paragraph:
            ``(4) Power source.--The term `power source' includes a 
        battery or an alternative electrical energy storage device.''.
                    (B) Amount of credit.--
                            (i) In general.--Paragraph (3) of section 
                        30(b) of the Internal Revenue Code of 1986, as 
                        amended by subsection (a), is amended by 
                        inserting at the end the following new 
                        sentence: ``In the case of any plug-in electric 
                        vehicle which uses a power source other than a 
                        battery, this first sentence of this paragraph 
                        shall be applied by substituting the 
                        appropriate energy equivalent measurement for 
                        the number of kilowatt hours.''.
                            (ii) Conforming amendment.--The heading of 
                        paragraph (3) of section 30(b) of such Code, as 
                        amended by subsection (a), is amended by 
                        striking ``battery capacity'' and inserting 
                        ``capacity''.
    (c) Effective Date.--The amendments made by this section shall 
apply to vehicles acquired after December 31, 2011.
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