Tax Incentives for Fuel Efficient Vehicles Act of 2003
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Read twice and referred to the Committee on Finance.
April 7, 2003
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Introduced in Senate
April 7, 2003
Sponsor introductory remarks on measure. (CR S4899-4902)
April 7, 2003
Read twice and referred to the Committee on Finance.
April 7, 2003
Floor Debate
6 membersWhat members said about S. 795 on the floor




+1
Floor Debate
6 membersWhat members said about S. 795 on the floor
Mr. President, today I rise to introduce a package of legislation--two bills--designed to put us back on track for improved fuel efficiency among automobiles. I support a balanced, forward-looking…
Mr. President, today I rise to introduce a package of legislation--two bills--designed to put us back on track for improved fuel efficiency among automobiles. I support a balanced, forward-looking…
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Mr. President, I am pleased to join with my colleague, Senator Durbin of Illinois, and others, in introducing a Corporate Average Fuel Efficiency bill that requires passenger vehicles to have an…
Mr. President, I am pleased to join with my colleague, Senator Durbin of Illinois, and others, in introducing a Corporate Average Fuel Efficiency bill that requires passenger vehicles to have an…
Mr. President, today, I am introducing a bill with my colleague from Virginia, Senator Warner, that provides tax incentives for American families to participate in political campaigns. It will…
Bill Text
Latest available legislative text
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 795 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 795
To amend the Internal Revenue Code of 1986 to provide additional tax
incentives for enhancing motor vehicle fuel efficiency, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 7, 2003
Mr. Durbin 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 provide additional tax
incentives for enhancing motor vehicle fuel efficiency, 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.
This Act may be cited as the ``Tax Incentives for Fuel Efficient
Vehicles Act of 2003''.
SEC. 2. MODIFICATIONS TO GAS GUZZLERS TAX TO ENCOURAGE GREATER AUTO
FUEL EFFICIENCY.
(a) Increase in Tax Rate.--Subsection (a) of section 4064 of the
Internal Revenue Code of 1986 (relating to gas guzzlers tax) is amended
to read as follows:
``(a) Imposition of Tax.--
``(1) In general.--There is hereby imposed on the sale by
the manufacturer of each automobile a tax determined in
accordance with the following table:
If the fuel economy for the model year of the
model type in which the automobile falls is:
The tax is:
Less than 5 mpg below the applicable fuel economy $0
standard.
At least 5 but less than 6 mpg below such standard. 1,000
At least 6 but less than 7 mpg below such standard. 1,500
At least 7 but less than 8 mpg below such standard. 2,000
At least 8 but less than 9 mpg below such standard. 2,500
At least 9 but less than 10 mpg below such standard 3,100
At least 10 but less than 11 mpg below such 3,800
standard.
At least 11 but less than 12 mpg below such 4,600
standard.
At least 12 but less than 13 mpg below such 5,500
standard.
At least 13 but less than 14 mpg below such 6,500
standard.
At least 14 mpg below such standard................ 7,700.
``(2) Inflation Adjustment.--
``(A) In general.--In the case of any taxable year
beginning after 2005, each dollar amount referred to in
paragraph (1) shall be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section (1)(f)(3) for the
calendar year in which the taxable year begins,
by substituting `2004' for `1992'.
``(B) Rounding.--If any amount as adjusted under
subparagraph (A) is not a multiple of $100, such amount
shall be rounded to the next lowest multiple of $50.''.
(b) Expansion of Definition of Automobile.--
(1) Increase in weight.--Section 4064(b)(1)(A)(ii) of the
Internal Revenue Code of 1986 (defining automobile) is amended
by striking ``6,000 pounds'' and inserting ``12,000 pounds''.
(2) Exception for certain vehicles.--Subparagraph (B) of
section 4064(b)(1) of such Code is amended to read as follows:
``(B) Exception for certain vehicles.--The term
`automobile' does not include--
``(i) a vehicle which has a primary load
carrying device or container attached,
``(ii) a vehicle which has a seating
capacity of more than 12 persons,
``(iii) a vehicle which has a seating
capacity of more than 9 persons behind the
driver's seat, or
``(iv) a vehicle which is equipped with a
cargo area of at least 6 feet in interior
length which is an open area or is designed for
use as an open area but is enclosed by a cap
and is not readily accessible directly from the
passenger compartment.''.
(c) Additional Definitions.--Section 4064(b) of the Internal
Revenue Code of 1986 (relating to definitions) is amended by adding at
the end the following new paragraphs:
``(8) Applicable fuel economy standard.--The term
`applicable fuel economy standard' means, with respect to any
model year, the average fuel economy standard as defined in
section 32902 of title 49, United States Code, for passenger
automobiles for such model year.
``(9) MPG.--The term `mpg' means miles per gallon.''.
(d) Effective Date.--The amendments made by this section shall apply
to sales after October 31, 2005.
SEC. 3. HIGHLY FUEL-EFFICIENT AUTOMOBILE CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by redesignating section 36 as section 37 and by inserting
after section 35 the following new section:
``SEC. 36. HIGHLY FUEL-EFFICIENT AUTOMOBILE CREDIT.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this subtitle for the taxable year an amount
equal to the new highly fuel-efficient automobile credit determined
under subsection (b).
``(b) New Highly Fuel-Efficient Automobile Credit.--For purposes of
subsection (a), the new highly fuel-efficient automobile credit with
respect to any new automobile placed in service by the taxpayer during
the taxable year is determined in accordance with the following tables:
If the fuel economy for the model year
of the model type in which the
passenger automobile falls is:
The credit is:
Less than 5 mpg above the applicable fuel economy $0
standard.
At least 5 but less than 6 mpg above such standard. 770
At least 6 but less than 7 mpg above such standard. 1,540
At least 7 but less than 8 mpg above such standard. 2,310
At least 8 but less than 9 mpg above such standard. 3,080
At least 9 but less than 10 mpg above such standard 3,850
At least 10 but less than 11 mpg above such 4,620
standard.
At least 11 but less than 12 mpg above such 5,390
standard.
At least 12 but less than 13 mpg above such 6,160
standard.
At least 13 but less than 14 mpg above such 6,930
standard.
At least 14 mpg above such standard................ 7,700.
If the fuel economy for the model year
of the model type in which the
non-passenger automobile falls is:
The credit is:
Less than 5 mpg above the applicable fuel economy $0
standard.
At least 5 but less than 6 mpg above such standard. 770
At least 6 but less than 7 mpg above such standard. 1,540
At least 7 but less than 8 mpg above such standard. 2,310
At least 8 but less than 9 mpg above such standard. 3,080
At least 9 but less than 10 mpg above such standard 3,850
At least 10 but less than 11 mpg above such 4,620
standard.
At least 11 but less than 12 mpg above such 5,390
standard.
At least 12 but less than 13 mpg above such 6,160
standard.
At least 13 but less than 14 mpg above such 6,930
standard.
At least 14 mpg above such standard................ 7,700.
``(c) New Automobile.--For purposes of this section, the term `new
automobile' means a passenger automobile or non-passenger automobile--
``(1) the original use of which commences with the
taxpayer,
``(2) which is acquired for use or lease by the taxpayer
and not for resale, and
``(3) which is made by a manufacturer.
``(d) Passenger Automobile; Non-Passenger Automobile.--For purposes
of this section--
``(1) Passenger automobile.--The term `passenger
automobile' has the meaning given the term `automobile' by
section 4064(b)(1).
``(2) Non-passenger automobile.--
``(A) In general.--The term `non-passenger
automobile' means any automobile (as defined in section
4064(b)(1)(A)), but only if such automobile is
described in subparagraph (B).
``(B) Non-passenger automobiles described.--An
automobile is described in this subparagraph if such
automobile is--
``(i) a vehicle which has a primary load
carrying device or container attached,
``(ii) a vehicle which has a seating
capacity of more than 12 persons,
``(iii) a vehicle which has a seating
capacity of more than 9 persons behind the
driver's seat, or
``(iv) a vehicle which is equipped with a
cargo area of at least 6 feet in interior
length which does not extend beyond the frame
of the vehicle and which is an open area or is
designed for use as an open area but is
enclosed by a cap and is not readily accessible
directly from the passenger compartment.
``(e) Other Definitions.--Except as provided in subsection (d), for
purposes of this section, any term used in this section and also in
section 4064 shall have the meaning given such term by section 4064.
``(f) Special Rules.--For purposes of this section--
``(1) 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.
``(2) No double benefit.--The amount of any deduction or
other credit allowable under this chapter with respect to an
automobile described under subsection (b), shall be reduced by
the amount of credit allowed under subsection (a) for such
automobile for the taxable year.
``(3) Property used by tax-exempt entities.--In the case of
a credit amount which is allowable with respect to an
automobile which is acquired by an entity exempt from tax under
this chapter, the person which sells or leases such automobile
to the entity shall be treated as the taxpayer with respect to
the automobile for purposes of this section and the credit
shall be allowed to such person, but only if the person clearly
discloses to the entity at the time of any sale or lease the
specific amount of any credit otherwise allowable to the entity
under this section.
``(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 (including recapture in
the case of a lease period of less than the economic life of an
automobile).
``(5) Property used outside united states, etc., not
qualified.--No credit shall be allowed under subsection (a)
with respect to any property referred to in section 50(b) or
with respect to the portion of the cost of any property taken
into account under section 179.
``(6) Election to not take credit.--No credit shall be
allowed under subsection (a) for any automobile if the taxpayer
elects to not have this section apply to such automobile.
``(7) Interaction with air quality and motor vehicle safety
standards.--Unless otherwise provided in this section, an
automobile shall not be considered eligible for a credit under
this section unless such automobile is in compliance with--
``(A) the applicable provisions of the Clean Air
Act for the applicable make and model year of the
automobile (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.
``(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.
``(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 an automobile
meets the requirements to be eligible for a credit under this
section.''.
(b) Conforming Amendments.--
(1) Section 1016(a) of the Internal Revenue Code of 1986 is
amended by striking ``and'' at the end of paragraph (27), by
striking the period at the end of paragraph (28) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(29) to the extent provided in section 36(f)(1).''.
(2) Section 6501(m) of such Code is amended by inserting
``36(f)(6),'' after ``30(d)(4),''.
(3) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``, or
from section 36 of such Code''.
(4) The table of sections for subpart C of part IV of
chapter 1 of the Internal Revenue Code of 1986 is amended by
striking the last item and inserting the following new items:
``Sec. 36. Highly fuel-efficient
automobile credit.
``Sec. 37. Overpayments of tax.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after October 31, 2005, in taxable
years ending after such date.
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