Bill Summary
This legislation, called the "Fairness for Every Driver Act", aims to amend the Internal Revenue Code of 1986 in two ways. First, it will terminate the existing tax credit for new qualified plug-in electric drive motor vehicles. This means that after 30 days from the enactment of this legislation, individuals will no longer be able to claim a tax credit for purchasing a plug-in electric vehicle. Second, it will impose a new user fee for alternative fuel vehicles that use electricity, fuel cells, or other alternative sources of energy. This fee will be calculated based on the average fuel consumption of similar motor vehicles and will be paid by the owners of the alternative fuel vehicles. The fees collected will be transferred to the Highway Trust Fund. This legislation also includes definitions of terms such as "alternative fuel vehicle" and outlines the administration and procedure for collecting the new user fee. These amendments will go into effect for taxable years beginning after the date of the legislation's enactment.
Possible Impacts
1. Higher costs for purchasing an alternative fuel vehicle: The termination and repeal of the credit for new qualified plug-in electric drive motor vehicles could result in higher costs for individuals looking to purchase an alternative fuel vehicle. This could affect people who are looking for more environmentally-friendly transportation options, as they may be less inclined to purchase an alternative fuel vehicle if the cost is significantly higher than a traditional gasoline-powered vehicle.
2. Decrease in sales of alternative fuel vehicles: The termination and repeal of the credit for new qualified plug-in electric drive motor vehicles could also lead to a decrease in sales of such vehicles. This could affect people who work in the alternative fuel vehicle industry, as well as those who have invested in companies that produce alternative fuel vehicles.
3. Higher taxes for alternative fuel vehicle owners: The imposition of a federal highway user fee on alternative fuel vehicles could result in higher taxes for owners of such vehicles. This could affect people who have made the switch to alternative fuel vehicles in order to reduce their carbon footprint, as they may now have to pay additional fees for using their vehicle.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1027 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 1027
To amend the Internal Revenue Code of 1986 to terminate the credit for
new qualified plug-in electric drive motor vehicles and to provide for
a Federal highway user fee on alternative fuel vehicles.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 6, 2019
Mr. Smith of Missouri (for himself and Mr. Gohmert) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to terminate the credit for
new qualified plug-in electric drive motor vehicles and to provide for
a Federal highway user fee on alternative fuel vehicles.
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 ``Fairness for Every Driver Act''.
SEC. 2. TERMINATION AND REPEAL OF CREDIT FOR NEW QUALIFIED PLUG-IN
ELECTRIC DRIVE MOTOR VEHICLES.
(a) Termination.--Section 30D of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(h) Termination.--Notwithstanding any of the preceding provisions
of this section, this section shall not apply to vehicles placed in
service after the date that is 30 days after the date of the enactment
of this subsection.''.
(b) Repeal.--
(1) In general.--Subpart B of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
striking section 30D (and by striking the item relating to such
section in the table of sections for such subpart).
(2) Conforming amendments.--
(A) Section 38(b) of the Internal Revenue Code of
1986 is amended by striking paragraph (30).
(B) Section 1016(a) of such Code is amended by
striking paragraph (37).
(C) Section 6501(m) of such Code is amended by
striking ``30D(e)(4),''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date that is 1
year and 30 days after the date of the enactment of this Act.
SEC. 3. FEDERAL HIGHWAY USER FEE ON ALTERNATIVE FUEL VEHICLES.
(a) Imposition of Fee.--
(1) In general.--Subtitle D of the Internal Revenue Code of
1986 is amended by adding at the end the following new chapter:
``CHAPTER 50A--ALTERNATIVE FUEL VEHICLE HIGHWAY USER FEE
``Sec. 5000D. Alternative fuel vehicle highway user fee.
``SEC. 5000D. ALTERNATIVE FUEL VEHICLE HIGHWAY USER FEE.
``(a) In General.--There is imposed a user fee on any alternative
fuel vehicle used in the United States during the taxable year.
``(b) Rate of Fee.--
``(1) In general.--The fee imposed under subsection (a)
with respect to any alternative fuel vehicle shall be the
product of--
``(A) the average gallons of fuel consumption per
vehicle for motor vehicles in the same category as such
alternative fuel vehicle, multiplied by
``(B)(i) in the case of an alternative fuel vehicle
in a category of vehicles which are ordinarily powered
by gasoline, the rate of tax under section
4081(a)(2)(A)(i) in effect for the first day of the
calendar year, and
``(ii) in the case of an alternative fuel vehicle
in a category of vehicles which are ordinarily powered
by diesel fuel, the rate of tax under section
4081(a)(2)(A)(iii) in effect for the first day of the
calendar year.
``(2) Categories of vehicles.--
``(A) In general.--For purposes of this subsection,
the Secretary, in consultation with the Secretary of
Transportation, shall--
``(i) establish categories of similar motor
vehicles for purposes of administering this
section, and
``(ii) assign all motor vehicles that are
commonly sold in the United States to one of
the categories established under clause (i).
``(B) Criteria.--In establishing the categories
under subparagraph (A)(i) and assigning motor vehicles
to such categories under subparagraph (A)(ii), the
Secretary shall consider--
``(i) gross vehicle weight rating,
``(ii) the number of wheels of the vehicle,
``(iii) the common use of the vehicle,
``(iv) whether comparable vehicles are
ordinarily powered by gasoline or diesel fuel,
and
``(v) such other factors as the Secretary,
in consultation with the Secretary of
Transportation, deems relevant.
``(3) Average gallons of fuel consumption.--For purposes of
this subsection, the average gallons of fuel consumption for
each category of motor vehicles--
``(A) shall be determined by the Secretary, in
consultation with the Secretary of Transportation,
taking into account only the motor vehicles in such
category that are not alternative fuel vehicles, and
``(B) shall be updated annually.
``(c) Definitions.--For purposes of this section--
``(1) Alternative fuel vehicle.--
``(A) In general.--The term `alternative fuel
vehicle' means any plug-in electric vehicle, any fuel
cell electric vehicle, or any other alternative fuel
vehicle.
``(B) Plug-in electric vehicle.--The term `plug-in
electric vehicle' means a motor vehicle which is
propelled to a significant extent by an electric motor
which draws electricity from a battery which--
``(i) has a capacity of not less than 4
kilowatt hours, and
``(ii) is capable of being recharged from
an external source of electricity.
``(C) Fuel cell electric vehicle.--The term `fuel
cell electric vehicle' means a motor vehicle which is
propelled to a significant extent by an electric motor
which draws electricity from hydrogen converted to
electricity by a fuel cell.
``(D) Other alternative fuel vehicle.--The term
`other alternative fuel vehicle' means a motor vehicle
(other than a plug-in electric vehicle or a fuel cell
electric vehicle) which is propelled to a significant
extent by an electric motor which draws power from any
source that is not subject to tax under section 4041 or
4081 (determined without regard to any exemption for a
specific use).
``(2) Motor vehicle.--The term `motor vehicle' means any
vehicle which is manufactured primarily for use on public
streets, roads, and highways (not including a vehicle operated
exclusively on a rail or rails).
``(d) Liability.--The fee imposed under this section shall be paid
by the person who owns the alternative fuel vehicle.
``(e) Administration and Procedure.--
``(1) In general.--The fee imposed under this section shall
be paid upon notice and demand by the Secretary, and shall be
assessed and collected in the same manner as taxes. Except as
otherwise provided, any reference in this title to `tax'
imposed by this title shall be deemed also to refer to the fee
provided by this section.
``(2) Time at which fee collected.--Any fee due under this
section shall be included with a taxpayer's return under
chapter 1 for the taxable year.''.
(2) Clerical amendment.--The table of chapters for subtitle
D of the Internal Revenue Code of 1986 is amended by adding at
the end the following new item:
``Chapter 50A--Alternative Fuel Vehicle Highway User Fee''.
(b) Transfers of Fees to Highway Trust Fund.--Section 9503(b)(1) of
the Internal Revenue Code of 1986 is amended--
(1) by inserting ``and fees'' after ``the taxes''; and
(2) by striking ``and'' at the end of subparagraph (D), by
striking the period at the end of subparagraph (E) and
inserting ``, and'', and by inserting after subparagraph (E)
the following new subparagraph:
``(F) section 5000D (relating to alternative fuel
vehicle highway user fee).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this section.
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