H.R. 1293

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to provide tax incentives and fees for increasing motor vehicle fuel economy, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES · February 13, 2025 · Sponsor: Mr. Casten

Table of contents

• H.R. 1293
  • Sec. 30E. Vehicle energy performance rebate.

Sec. 30E. Vehicle energy performance rebate.

• (a) Allowance of credit
  • (1) In general
    • There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the amount determined under paragraph (2) with respect to any new qualified high energy performance motor vehicle placed in service by the taxpayer during the taxable year.
  • (2) Credit amount
    • With respect to each new qualified high energy performance motor vehicle, the amount determined under this paragraph shall be equal to the amount (not greater than $5,000) that bears the same ratio to $5,000 as—
      • the excess of—
        • (i) the vehicle energy performance of such vehicle, over
        • (ii) the median vehicle energy performance for the model year immediately preceding the model year of such vehicle, bears to
      • the excess of—
        • (i) the best vehicle energy performance for the model year immediately preceding the model year of such vehicle, over
        • (ii) the median vehicle energy performance for the model year immediately preceding the model year of such vehicle.
• (b) New qualified high energy performance motor vehicle
  • For purposes of this section, the term means a passenger automobile or light truck— new qualified high energy performance motor vehicle
    • which is treated as a motor vehicle for purposes of title II of the Clean Air Act,
    • which achieves vehicle energy performance that is greater than the median vehicle energy performance for the model year immediately preceding the model year of such vehicle,
    • for which standards are prescribed pursuant to section 32902 of title 49, United States Code,
    • the original use of which commences with the taxpayer,
    • which is acquired for use or lease by the taxpayer and not for resale, and
    • which is made by a manufacturer beginning with model year 2027.
• (c) Application with other credits
  • (1) Business credit treated as part of general business credit
    • So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).
  • (2) Refundable personal credit
    • (A) In general
      • For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart C for such taxable year (and not allowed under subsection (a)).
    • (B) Refundable credit may be transferred
      • (i) A taxpayer may, in connection with the purchase of a new qualified high energy performance motor vehicle, transfer any refundable credit described in subparagraph (A) to any person who is in the trade or business of selling new qualified high energy performance motor vehicles and who sold such vehicle to the taxpayer, but only if such person clearly discloses to such taxpayer, through the use of a window sticker attached to the new qualified high energy performance vehicle—
      • the amount of the refundable credit described in subparagraph (A) with respect to such vehicle, and
      • a notification that the taxpayer will not be eligible for any credit under section 30D with respect to such vehicle unless the taxpayer elects not to have this section apply with respect to such vehicle.
      • (ii) A transferee of a refundable credit described in subparagraph (A) may not claim such credit unless such claim is accompanied by a certification to the Secretary that the transferee reduced the price the taxpayer paid for the new qualified high energy performance motor vehicle by the entire amount of such refundable credit.
      • (iii) Any transfer under clause (i) may be revoked only with the consent of the Secretary.
      • (iv) The Secretary may prescribe such regulations as necessary to ensure that any refundable credit described in clause (i) is claimed once and not retransferred by a transferee.
• (d) Other definitions
  • For purposes of this section:
    • The term means, with respect to any vehicle, the combined fuel-economy rating determined for the model and model year of such vehicle. vehicle energy performance
    • The term means, with respect to any model year, the median combined fuel-economy rating for all new motor vehicles of such model year sold in the United States. median vehicle energy performance
    • The term means, with respect to any model year, the highest combined fuel-economy rating of any model of motor vehicle of such model year sold the United States. best vehicle energy performance
    • The term means the combined fuel-economy rating determined in accordance with section 32908 of title 49, United States Code, and expressed in miles per gallon of gasoline equivalent.
    • The term has the meaning given such term under of such title 49. model year section 32901(a)
    • The term 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) and which has at least 4 wheels. motor vehicle
    • The terms , , , and have the meanings 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 (). automobile passenger automobile light truck manufacturer 42 U.S.C. 7521 et seq.
• (e) Special rules
  • (1) Basis reduction
    • 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 (determined without regard to subsection (c)).
  • (2) Property used by tax-exempt entity
    • In the case of a vehicle whose use is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). For purposes of subsection (c), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.
  • (3) Property used outside 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.
  • (4) Recapture
    • The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.
  • (5) Election not to take credit
    • No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.
  • (6) Interaction with air quality and motor vehicle safety standards
    • A motor vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with—
      • 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 provisions under a waiver under section 209(b) of the Clean Air Act), and
      • the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.
  • (7) Inflation adjustment
    • In the case of any model year beginning in a calendar year after 2027, each dollar amount in subsection (a)(2) shall be increased by an amount equal to—
      • such dollar amount, multiplied by
      • the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the model year begins, determined by substituting for in subparagraph (A)(ii) thereof.
    • Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100.
  • (8) One credit per vehicle
    • In the case of any vehicle, the credit described in subsection (a) shall only be allowed once with respect to such vehicle, as determined based upon the vehicle identification number of such vehicle.
• (f) Reporting of vehicle energy performance
  • (1) Vehicle manufacturers
    • Not later than November 1 of each calendar year (beginning with calendar year 2026), each vehicle manufacturer shall submit to the Secretary a report that includes—
      • the vehicle energy performance for each model of that model year which was manufactured by such manufacturer and sold in the United States, and
      • with respect to each such model of such model year, the number of vehicles of such model and model year sold in the United States during the 1-year period beginning on October 1 of the preceding year.
  • (2) Publication by Treasury
    • Not later than December 1 of each calendar year (beginning with calendar year 2026), the Secretary shall publish the median vehicle energy performance and the best vehicle energy performance for that model year.
• (g) Regulations
  • (1) In general
    • Except as provided in paragraph (2), the Secretary shall promulgate such regulations as necessary to carry out the provisions of this section not later than 1 year after the date of enactment.
  • (2) Coordination in prescription of certain regulations
    • The Secretary of the Treasury, in coordination with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall prescribe such regulations as necessary to determine whether a motor vehicle meets the requirements to be eligible for a credit under this section.