[Congressional Record Volume 153, Number 96 (Thursday, June 14, 2007)]
[Senate]
[Pages S7734-S7735]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself and Mr. Bennett):
  S. 1619. A bill to amend the Internal Revenue Code of 1986 to provide 
a credit for fuel-efficient motor vehicles, and for other purposes; to 
the Committee on Finance.
  Mr. WYDEN. Mr. President, today Senator Bennett and I are 
reintroducing legislation to provide a significant financial incentive 
for automakers to produce, and for their customers to buy, more fuel 
efficient cars and light trucks in the form of consumer tax credits. 
Reducing our Nation's dependence on oil should not be a partisan issue 
and Senator Bennett and I have worked together to come up with a plan 
that will encourage consumers to buy more energy efficient vehicles 
even if those vehicles employ technologies, such as electric hybrid 
drive trains or clean diesels, that cost more to produce.
  Under our bipartisan, market-oriented bill, consumers who buy 
vehicles that are at least 25 percent more fuel efficient than the 
current corporate fuel economy standards, called CAFE, would get a 
rebate of at least $630 and as much as $1,860 for the most fuel-
efficient cars. We have separate standards for cars and trucks so 
consumers can choose the type of vehicle they want and still get the 
credit as long as they choose a fuel-efficient model. Similarly, our 
bill is technology neutral. We don't provide a credit based on the kind 
of engine or drive train that a car or truck has. We provide a credit 
based on the level of fuel economy the vehicle achieves. So, 
manufacturers are free to pursue whichever efficiency technology they 
want and consumers have a greater choice of vehicles to purchase.
  In the past, the automobile industry has said that increasing fuel 
economy standards is hard to achieve because car buyers place little 
value on fuel economy, especially if that fuel efficiency comes with 
added cost. They also argue that initial purchaser of a new car or 
truck will not keep that car or truck long enough to recognize the 
life-cycle fuel savings of a more efficient vehicle. The new program 
created by our bill directly addresses these concerns by providing tax 
credits to consumers for purchasing fuel-efficient vehicles.
  Providing these credits to purchasers of fuel efficient vehicles will 
focus consumer attention on fuel efficiency at the time of purchase. 
For vehicles that qualify, the rebate amount would be printed on the 
window sticker on new vehicles, so consumers would know exactly how 
much they would receive at the time they buy a new vehicle.

  The consumer would claim that rebate as a tax credit on his or her 
tax return. Alternatively, the rebate could be transferred to auto 
dealers, allowing dealers to provide the rebates to consumers as ``cash 
back'' at the time of purchase.
  This legislation builds on the incentives that were provided in the 
2005 energy bill specifically for hybrid gasoline/electric, lean-burn 
and fuel-cell powered cars. We believe the approach that we are 
advocating will be simpler and fairer. Unlike the 2005 credits, we 
don't pick specific technologies. Unlike the 2005 credits, we don't 
limit the amount of the credits to a specific number of vehicles or 
manufacturer. This approach does not pick winners and losers among 
competitive technology or companies. It takes a technology-neutral 
approach that allows any vehicle that has superior fuel efficiency to 
qualify for a tax credit, whether it uses hybrid or any other 
technology.
  Finally, legislation already passed by the Senate Commerce Committee 
calls for the U.S. Department of Transportation to begin to increase 
the fuel efficiency standards of cars beginning in model year 2011. Our 
tax credit program, which will cover model years 2009, 2010 and 2011, 
will help bridge the gap between where we are now and implementation of 
the new fuel economy standards by encouraging consumers to buy those 
more fuel efficient vehicles earlier while helping manufacturers gear 
up to produce them.
  I urge colleagues to help jumpstart our Nation on the road to oil 
independence and chart a new direction for our Nation's energy policy 
by supporting the OILSAVE Act.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no ojection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1619

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Oil Independence, Limiting 
     Subsidies, and Accelerating Vehicle Efficiency (OILSAVE) 
     Act''.

     SEC. 2. TAX CREDIT FOR FUEL-EFFICIENT MOTOR VEHICLES.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     other credits) is amended by inserting after section 30C the 
     following new section:

     ``SEC. 30D. FUEL-EFFICIENT MOTOR VEHICLE CREDIT.

       ``(a) Allowance of Credit.--There shall be allowed a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to the applicable amount for each new 
     qualified fuel-efficient motor vehicle placed in service by 
     the taxpayer during the taxable year.
       ``(b) New Qualified Fuel-Efficient Motor Vehicle.--For 
     purposes of this section, the term `new qualified fuel-
     efficient motor vehicle' means a motor vehicle (as defined 
     under section 30(c)(2))--
       ``(1) which is a passenger automobile or a light truck,
       ``(2) which--
       ``(A) in the case of a passenger automobile, achieves a 
     fuel economy of not less than 34.5 miles per gallon, and
       ``(B) in the case of a light truck, achieves a fuel economy 
     of not less than 27.5 miles per gallon,
       ``(3) the original use of which commences with the 
     taxpayer,
       ``(4) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(5) which is made by a manufacturer for model year 2009, 
     2010, or 2011.
       ``(c) Applicable Amount.--For purposes of this section, the 
     applicable amount shall be determined as follows:


------------------------------------------------------------------------
                                               In the case
                                                  of a       In the case
                                                passenger    of a light
If the motor vehicle achieves a fuel economy   automobile,   truck, the
                     of:                           the       applicable
                                               applicable    amount is:
                                               amount is:
------------------------------------------------------------------------
27.5 miles per gallon.......................            $0          $630
28.5........................................             0           710
29.5........................................             0           780
30.5........................................             0           850
31.5........................................             0           920
32.5........................................             0           980
33.5........................................             0         1,040
34.5........................................           630         1.090
35.5........................................           700         1,140
36.5........................................           760         1,190
37.5........................................           820         1,240
38.5........................................           880         1,280
39.5........................................           940         1,320

[[Page S7735]]

 
40.5........................................           990         1,360
41.5........................................         1,040         1,400
42.5........................................         1,090         1,430
43.5........................................         1,140         1,470
44.5........................................         1,180         1,500
45.5........................................         1,220         1,530
46.5........................................         1,260         1,560
47.5........................................         1,300         1,590
48.5........................................         1,340         1,620
49.5........................................         1,370         1,640
50.5........................................         1,410         1,670
51.5........................................         1,440         1,690
52.5........................................         1,470         1,720
53.5........................................         1,500         1,740
54.5........................................         1,530         1,760
55.5........................................         1,560         1,780
56.5........................................         1,590         1,800
57.5........................................         1,610         1,820
58.5........................................         1,640         1,840
59.5 or more................................         1,660         1,860
------------------------------------------------------------------------

       ``(d) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Fuel economy.--The term `fuel economy' has the 
     meaning given such term under section 32901(a)(10) of title 
     49, United States Code.
       ``(2) Model year.--The term `model year' has the meaning 
     given such term under section 32901(a)(14) of such title.
       ``(3) Other terms.--The terms `passenger automobile', 
     `light truck', and `manufacturer' have the meaning given such 
     terms in regulations prescribed by the Administrator of the 
     Environmental Protection Agency for purposes of the 
     administration of title II of the Clean Air Act.
       ``(4) Reduction in basis.--For purposes of this subtitle, 
     the basis of any property for which a credit is allowable 
     under subsection (a) shall be reduced by the amount of such 
     credit so allowed.
       ``(5) No double benefit.--
       ``(A) Coordination with other vehicle credits.--No credit 
     shall be allowed under subsection (a) with respect to any new 
     qualified fuel-efficient motor vehicle for any taxable year 
     if a credit is allowed with respect to such motor vehicle for 
     such taxable year under section 30 or 30B.
       ``(B) Other tax benefits.--The amount of any deduction or 
     credit (other than the credit allowable under this section 
     and any credit described in subparagraph (A)) allowable under 
     this chapter with respect to any new qualified fuel-efficient 
     motor vehicle shall be reduced by the amount of credit 
     allowed under subsection (a) for such motor vehicle for such 
     taxable year.
       ``(6) Property used outside the united states, etc., not 
     qualified.--No credit shall be allowable under subsection (a) 
     with respect to any property referred to in section 50(b)(1) 
     or with respect to the portion of the cost of any property 
     taken into account under section 179.
       ``(7) Election not to take credit.--No credit shall be 
     allowed under subsection (a) for any vehicle if the taxpayer 
     elects not to have this section apply to such vehicle.
       ``(8) Interaction with air quality and motor vehicle safety 
     standards.--Unless otherwise provided in this section, a 
     motor vehicle shall not be considered eligible for a credit 
     under this section unless such vehicle is in compliance 
     with--
       ``(A) the applicable provisions of the Clean Air Act for 
     the applicable make and model year of the vehicle (or 
     applicable air quality provisions of State law in the case of 
     a State which has adopted such provision under a waiver under 
     section 209(b) of the Clean Air Act), and
       ``(B) the motor vehicle safety provisions of sections 30101 
     through 30169 of title 49, United States Code.
       ``(e) Credit May Be Transferred.--
       ``(1) In general.--A taxpayer may, in connection with the 
     purchase of a new qualified fuel-efficient motor vehicle, 
     transfer any credit allowable under subsection (a) to any 
     person who is in the trade or business of selling new 
     qualified fuel-efficient motor vehicles, but only if such 
     person clearly discloses to such taxpayer, through the use of 
     a window sticker attached to the new qualified fuel-efficient 
     vehicle--
       ``(A) the amount of any credit allowable under subsection 
     (a) with respect to such vehicle, and
       ``(B) a notification that the taxpayer will not be eligible 
     for any credit under section 30 or 30B with respect to such 
     vehicle unless the taxpayer elects not to have this section 
     apply with respect to such vehicle.
       ``(2) Consent required for revocation.--Any transfer under 
     paragraph (1) may be revoked only with the consent of the 
     Secretary.
       ``(3) Regulations.--The Secretary may prescribe such 
     regulations as necessary to ensure that any credit described 
     in paragraph (1) is claimed once and not retransferred by a 
     transferee.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) of the Internal Revenue Code of 1986 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 
     new paragraph:
       ``(38) to the extent provided in section 30D(d)(4).''.
       (2) Section 6501(m) of such Code is amended by inserting 
     ``30D(d)(7),'' after ``30C(e)(5),''.
       (3) The table of section for subpart C of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 30C the 
     following new item:

``Sec. 30D. Fuel-efficient motor vehicle credit.''.
       (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 with respect to model years 2009, 
     2010, and 2011.

     SEC. 3. SENSE OF THE SENATE REGARDING OFFSETTING REVENUES.

       It is the sense of the Senate that the cost of the 
     amendments made by section 2 shall be offset by equivalent 
     revenues specified in related legislation.
                                 ______