[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5393 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 5393
To amend the Internal Revenue Code of 1986 to revise the incentives for
electric vehicles, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 11, 2019
Ms. Speier (for herself, Ms. Norton, Mrs. Torres of California, Mr.
Takano, Mr. Pocan, Mr. Ryan, Mrs. Watson Coleman, Ms. McCollum, Mr.
Vargas, Ms. Meng, Ms. Roybal-Allard, Mr. Huffman, Mr. Norcross, Mr.
Garamendi, Mr. Quigley, Mr. DeSaulnier, Ms. Kaptur, Mr. Sires, Mr.
McNerney, Ms. Matsui, Mr. Crist, Mr. Lowenthal, Mr. Cuellar, Ms. Tlaib,
Mrs. Dingell, Ms. Brownley of California, Mr. Rouda, Ms. Moore, Mr.
Grijalva, Mr. Cleaver, and Mr. Cardenas) 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 revise the incentives for
electric vehicles, 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; FINDINGS.
(a) Short Title.--This Act may be cited as the ``Affordable
American-made Automobile Act''.
(b) Findings.--Congress finds the following:
(1) The automobile industry is vital to the national
economy and to national security. It employs millions of
Americans and develops new technologies with widespread
civilian and military application.
(2) The global automobile industry is already in the midst
of an historic transformation to electric vehicle technology.
This transition has profound implications for all Americans.
(3) In critical measures of the global competition in the
electric vehicle industry, the United States is behind China
and is projected to fall further behind. The United States is
behind in total vehicle sales, behind in the market share of
new car sales, behind in investment, behind in battery
manufacturing capacity, and behind in manufacturing capacity.
The United States lags China to a great extent, but the United
States is in third place in this competition, behind the
European Union.
(4) China sells half the electric vehicles sold in the
world. In addition, China's percent of new car market share of
electric vehicles is twice that of the United States. In a few
short years, the Chinese new market share of electric vehicles
is expected to be triple the new market share in the United
States.
(5) China is predicted to control about 75 percent of the
global battery capacity.
(6) Global investment in electric vehicles is expected to
reach $300 billion or even more; half of which is intended for
China and only 10 percent for the United States.
(7) There are 17 Chinese automobile manufacturers that have
announced or undertaken electric vehicle investment. Even
assuming some consolidation of the Chinese industry, it will
dwarf the number of manufacturers headquartered in the United
States which is currently 4.
(8) China supports its electric vehicle industry through a
wide array of practices including state-owned enterprises,
direct subsidies, special access to financing, government
guarantees of financing, exemptions from various regulatory
requirements, public purchasing, favoritism for Chinese firms,
restrictions on market entry to foreign competition, and
regulatory mandates.
(9) Chinese domination of the electric vehicle industry
will inevitably erode United States automobile manufacturing
and the United States supply chain potentially resulting in the
loss of hundreds of thousands of jobs. Employment in the
innovation and research side of the industry has already begun
a migration outside the United States.
(10) United States communities are also currently suffering
from extreme events of flood, wind, and fire, as well as
health-threatening air pollution, all of which are related to a
warming planet. Electric vehicles will play a critical role in
reducing the pollution that contributes to these tragedies.
(11) Without changes to public policy, the automotive
industry in the United States will face aggressive competition
from foreign companies, chiefly located in China, and will
fight a competitive battle on grossly unequal terms due to
foreign government policies that unfairly favor overseas
manufacturers.
(12) Such an unfair fight is unwinnable by private industry
alone and is therefore a national priority for the Government
of the United States to enter on behalf of every current and
future American.
(13) The United States faces a moment of critical choice.
It either makes the investments necessary to achieve global
competitive leadership in this key industry, or it will face
profound and dire consequences to its economy and its national
security.
(14) The United States needs to stimulate demand for
electric vehicles from middle class consumers. Tax incentives
for the development of convenient fast charging infrastructure
are essential. Investment is needed to support increased
electric vehicle and battery manufacturing capacity.
SEC. 2. EXPANSION OF TAX CREDIT FOR ELECTRIC DRIVE MOTOR VEHICLES.
(a) Application to New and Used Battery Electric Motor Vehicles.--
(1) In general.--Section 30D(a) of the Internal Revenue
Code of 1986 is amended by striking ``new qualified plug-in
electric drive motor vehicle'' and inserting ``credit eligible
electric motor vehicle''.
(2) Per vehicle dollar limitation.--Section 30D(b) of such
Code is amended--
(A) in paragraph (1)--
(i) by striking ``paragraphs (2) and (3)''
and inserting ``paragraphs (4) and (5)''; and
(ii) by striking ``In general'' in the
heading and inserting ``New qualified plug-in
electric drive motor vehicles'';
(B) by redesignating paragraphs (2) and (3) as
paragraphs (4) and (5), respectively, and inserting
after paragraph (1) the following new paragraphs:
``(2) New battery electric motor vehicles.--
``(A) In general.--The amount determined under this
subsection with respect to any new battery electric
motor vehicle is--
``(i) $12,000 ($15,000 in the case of new
battery electric motor vehicles acquired after
December 31, 2018, and before the date which is
5 years after the date of the enactment of the
Affordable American-made Automobile Act) if the
price of such vehicle is not more than $35,000,
and
``(ii) $7,500 if the price of such vehicle
is greater than $35,000.
``(B) Determination of price.--For purposes of this
paragraph, the term `price' means--
``(i) except as provided in clause (ii),
the final sales price agreed upon by the
taxpayer and the person from whom the taxpayer
acquires such vehicle (determined without
regard to any taxes or fees imposed by any
State or local government), and
``(ii) in the case of a lease, the price of
the vehicle stated in the lease agreement
between the lessor and lessee (as so
determined).
``(3) Used battery electric motor vehicles.--The amount
determined under this subsection with respect to any used
battery electric motor vehicle is--
``(A) $5,000 if the taxpayer trades in a vehicle
that is powered by an internal combustion engine in
connection with the taxpayer's acquisition of such used
battery electric motor vehicle, and
``(B) $0 in any other case.''; and
(C) in paragraph (5) (as so redesignated), by
striking ``a vehicle'' and inserting ``a new qualified
plug-in electric drive motor vehicle''.
(3) Credit eligible electric motor vehicle.--Section 30D(d)
of such Code is amended--
(A) by redesignating paragraphs (2), (3), and (4)
as paragraphs (5), (6), and (7), respectively;
(B) by redesignating paragraph (1) as paragraph
(2);
(C) in paragraph (2) (as so redesignated)--
(i) in subparagraph (F), by inserting
``utilizes an internal combustion engine and''
before ``is propelled''; and
(ii) by striking ``In general'' in the
heading and inserting ``New qualified plug-in
electric drive motor vehicle'';
(D) by striking all that precedes paragraph (2) (as
so redesignated) and inserting the following:
``(d) Credit Eligible Motor Vehicle.--For purposes of this
section--
``(1) Credit eligible motor vehicle.--The term `credit
eligible motor vehicle' means--
``(A) a new qualified plug-in electric drive motor
vehicle,
``(B) a new battery electric motor vehicle, and
``(C) a used battery electric motor vehicle.''; and
(E) by inserting after paragraph (2) (as so
redesignated) the following new paragraphs:
``(3) New battery electric motor vehicle.--The term `new
battery electric motor vehicle' means a motor vehicle--
``(A) which meets the requirements of subparagraphs
(A) through (E) of paragraph (2),
``(B) which is powered by a battery electric drive
train,
``(C) which produces zero exhaust emissions of any
criteria pollutant (including any precursor pollutant)
or greenhouse gas (other than emissions from air
conditioning systems) under any possible operational
modes or conditions,
``(D) the battery cell, battery pack, battery
cooling system, and battery management system of which
are all manufactured in the United States, and
``(E) the assembly of which is in the United
States.
``(4) Used battery electric motor vehicle.--
``(A) In general.--The term `used battery electric
motor vehicle' means a motor vehicle--
``(i) the original use of which commences
with a person other than the taxpayer,
``(ii) which meets the requirements of
subparagraphs (B) through (E) of paragraph (2),
and
``(iii) which meets the requirements of
subparagraphs (B) through (E) of paragraph (3).
``(B) Only 1 credit per vehicle.--No credit shall
be allowed under this section with respect to any used
battery electric motor vehicle placed in service by the
taxpayer if a credit is allowable under this section by
reason of such vehicle being placed in service at any
time prior to the time that such vehicle is placed in
service by the taxpayer (other than a credit which is
so allowable by reason of such vehicle being a new
battery electric motor vehicle).''.
(b) Carryover of Personal Credit.--Section 30D(c)(2) of such Code
is amended--
(1) by striking ``For purposes'' and inserting the
following:
``(A) In general.--For purposes''; and
(2) by adding at the end the following new subparagraph:
``(B) Carryback and carryforward of unused
credits.--
``(i) In general.--If the credit described
in subparagraph (A) exceeds the limitation
imposed by section 26(a) for the taxable year
reduced by the sum of the credits allowable
under subpart A (determined without regard to
the credit described in subparagraph (A)), such
excess shall be--
``(I) carried back to the taxable
year preceding the taxable year in
which such amount arose, and
``(II) carried forward to the 5
taxable years following the taxable
year in which such amount arose.
``(ii) Limitation.--For purposes of clause
(i), the amount of credit carried back or
forward under such clause--
``(I) shall be taken into account
as a credit described in subparagraph
(A) for the taxable year to which
carried (except, in the case of a
carryback, such amount shall not be
taken into account for purposes of
applying clause (i) to such taxable
year), and
``(II) such amounts shall be
treated as used on a first-in, first-
out basis, determined on the basis of
the taxable year in which such amount
arose.''.
(c) Assignment of Credit to Financing Entity.--Section 30D(f) of
such Code is amended by adding at the end the following new paragraph:
``(8) Credit may be assigned to financing entity.--
``(A) In general.--In the case of a credit
determined under subsection (a) with respect to a new
qualified plug-in electric drive motor vehicle or a new
battery electric motor vehicle, the taxpayer to whom
such credit would (but for this paragraph) be allowed
under subsection (a) for any taxable year may assign
such credit to the person who financed the purchase (or
lease of at least 2 years) of such vehicle. Any person
to whom such credit is assigned under the preceding
sentence shall be treated for purposes of this title as
the taxpayer who placed such vehicle in service.
``(B) Disclosure requirement.--Subparagraph (A)
shall not apply with respect to any vehicle unless the
person to whom the credit is assigned clearly discloses
in writing to the taxpayer the amount of the credit
allowable under subsection (a) with respect to such
vehicle (determined without regard to subsection
(c)).''.
(d) Modification of Termination of Credit.--
(1) Repeal of manufacturers limitation.--Section 30D of
such Code is amended by striking subsection (e).
(2) Termination of credit.--Section 30D of such Code is
amended by adding at the end the following new subsection:
``(h) Termination.--This section shall not apply to any vehicle
placed in service after December 31, 2030.''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
vehicles acquired after December 31, 2018.
(2) Carryforward.--The amendments made by subsection (b)
shall apply to vehicles acquired after the date of the
enactment of this Act.
(3) Assignment.--The amendment made by subsection (c) shall
apply to vehicles acquired after the date which is 60 days
after the date of the enactment of this Act.
SEC. 3. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT EXTENDED FOR
ELECTRIC VEHICLE CHARGING STATIONS.
(a) Extension.--Section 30C(g) of the Internal Revenue Code of 1986
is amended by striking ``December 31, 2017'' and inserting ``December
31, 2030''.
(b) Repeal of Limitation.--Section 30C of such Code is amended by
striking subsection (b).
(c) Application to Electric Vehicle Charging Stations.--
(1) In general.--Section 30C(a) of such Code is amended by
striking ``qualified alternative fuel vehicle refueling
property'' and inserting ``electric vehicle charging station''.
(2) Electric vehicle charging station defined.--Section
30C(c) of such Code is amended to read as follows:
``(c) Electric Vehicle Charging Station.--For purposes of this
section, the term `electric vehicle charging station' means a station
designed for recharging an electric battery of a credit eligible motor
vehicle (as defined in section 30D(d), but determined without regard to
the requirements of subparagraphs (D) and (E) of paragraph (3)
thereof).''.
(d) Conforming Amendments.--
(1) Section 30C(e)(2) of such Code is amended by striking
``qualified alternative fuel vehicle refueling property'' and
inserting ``electric vehicle charging station''.
(2) Section 30C(e) of such Code is amended by striking
paragraph (6) and redesignating paragraph (7) as paragraph (6).
(3) Section 38(b)(25) of such Code is amended by striking
``alternative fuel vehicle refueling property credit'' and
inserting ``electric vehicle charging station credit''.
(4) The heading of section 30C of such Code (and the item
relating to such section in the table of sections for subpart B
of part IV of subchapter A of chapter 1 of such Code) is
amended by striking ``alternative fuel vehicle refueling
property'' and inserting ``electric vehicle recharging
station''.
(e) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2018.
SEC. 4. PRIVATE ACTIVITY BONDS RELATED TO ELECTRIC VEHICLE
MANUFACTURING.
(a) In General.--Section 142(a) of the Internal Revenue Code of
1986 is amended by striking ``or'' at the end of paragraph (14), by
striking the period at the end of paragraph (15) and inserting ``,
or'', and by adding at the end the following new paragraph:
``(16) a qualified battery electric motor vehicle
manufacturing facility or a qualified electric vehicle battery
manufacturing facility.''.
(b) Facilities Defined.--Section 142 of such Code is amended by
adding at the end the following new subsection:
``(n) Qualified Battery Electric Motor Vehicle Manufacturing and
Qualified Electric Vehicle Battery Manufacturing Facilities.--
``(1) In general.--For purposes of subsection (a)(16)--
``(A) the term `qualified battery electric motor
vehicle manufacturing facility' means a battery
electric motor vehicle manufacturing facility
designated by the Secretary under this subsection, and
``(B) the term `qualified electric vehicle battery
manufacturing facility' means an electric vehicle
battery manufacturing facility designated by the
Secretary under this subsection.
``(2) Battery electric motor vehicle manufacturing
facility.--For purposes of this subsection--
``(A) In general.--The term `battery electric motor
vehicle manufacturing facility' means a facility for
manufacturing battery electric motor vehicles.
``(B) Battery electric motor vehicles.--The term
`battery electric motor vehicle' means an automobile
which is powered by a battery electric drive train and
which produces zero exhaust emissions of any criteria
pollutant (including any precursor pollutant) or
greenhouse gas (other than emissions from air
conditioning systems) under any possible operational
modes or conditions.
``(3) Electric vehicle battery manufacturing facility.--The
term `electric vehicle battery manufacturing facility' means a
facility for manufacturing batteries for use in battery
electric motor vehicles.
``(4) Aggregate limitation on designations.--
``(A) In general.--An issue shall not be treated as
an issue described in subsection (a)(16) if the
aggregate face amount of bonds issued by the State or
local government pursuant thereto for any facility
(when added to the aggregate face amount of bonds
previously so issued for such facility) exceeds the
amount allocated to such facility by the Secretary
under this subsection.
``(B) Aggregate limitation.--The Secretary many not
allocate more than $15,000,000,000 to facilities
designated under this subsection.
``(5) Standards for designation.--The Secretary shall not
designate a facility for purposes of this subsection unless--
``(A) an application has been submitted to the
Secretary with respect to such facility which meets the
requirements of paragraph (7),
``(B) such facility is located in the United
States,
``(C) such facility has been nominated by a State
or local government during the 180-day period ending
with the date of such application, and
``(D) such State or local government provides
written assurances of the accuracy of the application
with respect to such facility.
``(6) Priority for retooling of existing facilities.--The
Secretary shall give priority in making designations and
allocations under this subsection to the retooling of existing
manufacturing facilities, especially the oldest facilities or
facilities that have been in existence for at least 20 years
(whether or not such facilities are idle).
``(7) Conditional designations.--The Secretary may approve
a designation under this subsection subject to such conditions
as the Secretary may determine are necessary to satisfy the
purposes of this subsection or to protect the national security
interests of the United States.
``(8) Application.--An application with respect to a
facility for designation under this subsection shall include--
``(A) a written agreement that--
``(i) all laborers and mechanics employed
by contractors or subcontractors during
construction, alteration, or repair that is
financed, in whole or in part, by the proceeds
of the issue shall be paid wages at rates not
less than those prevailing on similar
construction in the locality, as determined by
the Secretary of Labor in accordance with
sections 3141-3144, 3146, and 3147 of title 40,
United States Code, and
``(ii) the Secretary of Labor shall, with
respect to the labor standards described in
clause (i), have the authority and functions
set forth in Reorganization Plan Numbered 14 of
1950 (5 U.S.C. App.) and section 3145 of title
40, United States Code,
``(B) evidence satisfactory to the Secretary that
the project will improve the global competitive
position of the United States in the electric vehicle
industry, will stimulate the regional economy at the
facility location, and will provide quality jobs and
labor standards consistent with the United States
automobile industry, and
``(C) a demonstration that the facility includes
the use of energy efficiency, renewable energy, and
other sustainable design features to the extent
feasible.
``(9) Time limit on expenditure of bond proceeds.--An issue
shall not be treated as an issue described in subsection
(a)(16) unless at least 95 percent of the net proceeds of the
issue are expended for the facility designated under this
subsection within the 5-year period beginning on the date of
issuance. If at least 95 percent of such net proceeds is not so
expended within such 5-year period, an issue shall be treated
as continuing to be described in subsection (a)(16) if the
issuer uses all remaining proceeds of the issue to redeem bonds
of the issue within 90 days after the end of such 5-year
period. The Secretary, at the request of the issuer, may extend
such 5-year period if the issuer establishes that the failure
to make such expenditures is due to circumstances beyond the
control of the issuer.''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
<all>
Affordable American-made Automobile Act
#5393 | HR Congress #116
Policy Area: Taxation
Last Action: Referred to the House Committee on Ways and Means. (12/11/2019)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text