II 112th CONGRESS 2d Session S. 2161 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.

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.