II
112th CONGRESS
1st Session
S. 298
IN THE SENATE OF THE UNITED STATES
February 7, 2011
Ms. Stabenow introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To drive American innovation and advanced vehicle manufacturing, to reduce costs for consumers, and for other purposes.
Short title; table of contents
Short title
This Act may be cited
as the Charging America Forward
Act
.
Table of contents
The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Extension and modification of new qualified hybrid motor vehicle credit.
Sec. 3. Extension of alternative fuel vehicle refueling property credit.
Sec. 4. Increase in limitation on number of new qualified plug-in electric drive motor vehicles.
Sec. 5. Refundability and transferability of credit for new qualified plug-in electric drive motor vehicles.
Sec. 6. Recovery period for depreciation of smart meters and smart grid systems.
Sec. 7. Business energy investment credits for certain used energy storage property.
Sec. 8. Nonbusiness energy property credit for certain residential energy storage property.
Sec. 9. Advanced battery manufacturing assistance.
Extension and modification of new qualified hybrid motor vehicle credit
Extension
In general
Paragraph (3) of section 30B(k) of the Internal Revenue Code of 1986 is amended to read as follows:
in the case of a new qualified hybrid motor vehicle (as described in subsection (d)(2)(B))—
after December 31, 2009, and before January 1, 2011, and
after December 31, 2014.
.
Conforming amendments
Section 30B(k) of such Code is amended—
by striking
purchased after
and inserting purchased
,
by inserting
after
after subsection (b)),
in paragraph
(1),
by inserting
after
after subsection (d)(2)(A)),
in paragraph
(2), and
by inserting
after
after subsection (e)),
in paragraph
(4).
Qualified incremental hybrid cost
Clause (iii) of section 30B(d)(2)(B) of
the Internal Revenue Code of 1986 is amended by striking does not
exceed—
and all that follows and inserting the following: “does not
exceed—
$15,000, if such vehicle has a gross vehicle weight rating of not more than 14,000 pounds;
$30,000, if such vehicle has a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds;
$60,000, if such vehicle has a gross vehicle weight rating of more than 26,000 pounds but not more than 33,000 pounds; and
$100,000, if such vehicle has a gross vehicle weight rating more than 33,000 pounds.
.
Credit allowable for certain vehicles with a 10-Percent fuel economy increase or adequate fuel savings
Clause (ii) of section 30B(d)(2)(B) of the Internal Revenue Code of 1986 is amended by redesignating subclauses (I), (II), and (III) as subclauses (II), (III), and (IV), respectively, and by inserting before subclause (II) (as so redesignated) the following new subclause:
10 percent in the case of a vehicle to which clause (iii)(IV) applies if—
such vehicle achieves an increase in city fuel economy relative to a comparable vehicle of at least 20 percent but less than 30 percent, or
item (aa) and subclauses (II), (III), and (IV) do not apply to such vehicle and the fuel consumption of such vehicle is at least 700 gallons less than the fuel consumption of a comparable vehicle when driven 100,000 miles (as determined by the Secretary in consultation with the Administrator of the Environmental Protection Agency).
.
Dollar limitation
Subparagraph (B) of section 30B(d)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause:
Limitation
The amount allowed as a credit under subsection (a)(3) with respect to a vehicle by reason of clause (i) of this subparagraph shall not exceed $24,000.
.
Heavy electric vehicles
Paragraph (3) of section 30B(d) of the Internal Revenue Code of 1986 is amended by redesignating subparagraphs (B), (C), and (D) as subparagraphs (C), (D), and (E), respectively, and by inserting after subparagraph (A) the following new subparagraphs:
Heavy electric vehicles
In the case of a vehicle with a gross vehicle weight rating of not less than 8,500 pounds, the term new qualified hybrid motor vehicle includes a motor vehicle—
which draws propulsion energy primarily from a rechargeable energy storage system; and
which meets the requirements of clauses (iii), (v), (vi), and (vii) of subparagraph (A).
.
Credits may be transferred
Subsection (d) of section 30B of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Transferability of credit
In general
A taxpayer who places in service any vehicle may transfer the credit allowed under this subsection with respect to such vehicle through an assignment to the seller of such vehicle. Such transfer may be revoked only with the consent of the Secretary.
Regulations
The Secretary shall prescribe such regulations as necessary to ensure that any credit transferred under subparagraph (A) is claimed once and not reassigned by such other person.
.
Effective date
The amendments made by this section shall apply to vehicles acquired after December 31, 2010.
Extension of alternative fuel vehicle refueling property credit
In general
Subsection (g) of section 30C of the Internal Revenue
Code of 1986 is amended by striking placed in service—
and all
that follows and inserting placed in service after December 31,
2014
.
Increased credit
Credit percentage
Subsection (a) of section 30C of the Internal Revenue
Code of 1986 is amended by striking 30 percent
and inserting
50 percent
.
Dollar limitations
Subsection (b) of section 30C of such Code is amended—
by striking
$30,000
in paragraph (1) and inserting
$50,000
,
by striking
depreciation, and
in paragraph (1) and inserting
depreciation which is not described in paragraph (2),
,
by redesignating paragraph (2) as paragraph (3),
by inserting after paragraph (1) the following new paragraph:
the greater of—
$50,000, or
$10,000 for each single charging device designed to recharge a motor vehicle propelled by electricity,
, and
by striking
$1,000
in paragraph (3), as redesignated by subparagraph (C),
and inserting $2,000
.
Conforming amendment
Subparagraph (A) of section 30C(e)(6) of such Code is
amended by inserting and which is placed in service before the date of
the enactment of paragraph (7)
after hydrogen
.
Treatment of personal credit
In general
Paragraph (2) of section 30C(d) of the Internal Revenue Code of 1986 is amended to read as follows:
Personal credit
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 A for such taxable year.
Limitation based on amount of tax
In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of—
the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
the sum of the credits allowable under subpart A (other than this section and sections 25D and 30D) and section 27 for the taxable year.
.
Conforming amendment
Clause (ii) of section 30D(c)(2)(B) is amended by
striking section 25D
and inserting sections 25D and
30C
.
Treatment of property used by tax-Exempt entity
Paragraph (2) of section 30C(e) of the Internal Revenue Code of 1986 is amended by striking the last sentence.
Joint ownership of electric vehicle recharging property
Subsection (e) of section 30C of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Joint ownership of electric vehicle recharging property
In general
Any property relating to electricity shall not fail to be treated as qualified alternative fuel vehicle refueling property solely because such property is placed in service with respect to 2 or more dwelling units.
Limits applied separately
In the case of any qualified alternative fuel vehicle refueling property relating to electricity which is placed in service with respect to 2 or more dwelling units, this section (other than this subparagraph) shall be applied separately with respect to the portion of such property attributable to each such dwelling unit.
.
Definition of alternative fuel vehicle refueling property in the case of electricity
In general
Subparagraph (B) of section 179A(d)(3) of the Internal Revenue Code of 1986 is amended to read as follows:
for the recharging of motor vehicles propelled by electricity, including electrical panel upgrades, wiring, conduit, trenching, pedestals, and related equipment.
.
Building components
Subsection (d) of section 179A of such Code is amended
by inserting , except for property described in paragraph
(3)(B),
after not including a building and
.
Effective date
The amendments made by this section shall apply to property placed in service after December 31, 2010.
Increase in limitation on number of new qualified plug-in electric drive motor vehicles
In general
Paragraph (2) of section 30D(e) of the Internal Revenue
Code of 1986 is amended by striking 200,000
and inserting
500,000
.
Effective date
The amendment made by subsection (a) shall apply to vehicles sold after the date of the enactment of this Act.
Refundability and transferability of credit for new qualified plug-in electric drive motor vehicles
Credit made refundable
In general
The Internal Revenue Code of 1986 is amended—
by redesignating section 30D, as amended by this Act, as section 36D, and
by moving section 36D (as so redesignated) from subpart D of part IV of subchapter A of chapter 1 to the location immediately before section 37 in subpart C of part IV of subchapter A of chapter 1.
Conforming amendments
Section
24(b)(3)(B) of the Internal Revenue Code of 1986 is amended by striking
30B, and 30D
and inserting and 30B
.
Section
25(e)(1)(C) of such Code is amended by striking 30D,
.
Section
25A(i)(5)(B) of such Code is amended by striking sections 25D and
30D
and inserting section 25D
.
Section 25B(g)(2)
of such Code is amended by striking 30B, and 30D
and inserting
and 30B
.
Section 26(a)(1)
of such Code is amended by striking 30B, and 30D
and inserting
and 30B
.
Section
30(c)(2)(B)(ii) of such Code is amended by striking sections 25D and
30D
and inserting section 25D
.
Section
30B(d)(3)(D) of such Code is amended by striking 30D (determined without
regard to subsection (c) thereof)
and inserting
36D
.
Section
30B(g)(2)(B)(ii) of such Code is amended by striking , 30, and
30D
and inserting and 30
.
Section 30B(i)(2)
of such Code is amended by striking 30D
and inserting
36D
.
Section
30C(d)(2)(B) of such Code, as amended by this Act, is amended by striking
sections 25D and 30D
and inserting section
25D
.
Section 38(b) of
such Code is amended by adding plus
at the end of paragraph
(34), by striking paragraph (35), and by redesignating paragraph (36) as
paragraph (35).
Section
48C(c)(1)(A)(i)(VI) of such Code is amended by striking 30D
and
inserting 36D
.
Section 904(i) of
such Code is amended by 30B, and 30D
and inserting and
30B
.
Section
1016(a)(37) of such Code is amended by striking 30D(f)(1)
and
inserting 36D(f)(1)
.
Section
1400C(d)(2) of such Code is amended by striking 30B, and 30D
and
inserting and 30B
.
Section 6501(m)
of such Code is amended by striking 30D(e)(4)
and inserting
section 36D(e)(6)
.
The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 30D.
Paragraph (2) of
section 1324(b) of title 31, United States Code is amended by inserting
36D,
after 36C,
.
The table of sections 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 36C the following new item:
Sec. 36D. New qualified plug-in electric drive motor vehicles.
.
Transferability of credit
In general
Subsection (c) of section 36D of the Internal Revenue Code of 1986 is amended to read as follows:
Credit may be transferred
In general
A taxpayer may, in connection with the purchase of a new qualified plug-in electric drive motor vehicle, transfer any the credit allowed under subsection (a)—
to any person who is in the trade or business of selling new qualified plug-in electric drive motor vehicles and who sold such vehicle to the taxpayer, or
to any person who is in the trade or business of financing the sales of new qualified plug-in electric drive motor vehicles and who—
financed the taxpayer's purchase of such vehicle, or
purchases an installment obligation incurred for the purchase of such vehicle.
Disclosure
A taxpayer may transfer a refundable credit described in paragraph (1) to a person described in subparagraph (A) thereof only if such person clearly discloses to such taxpayer, through the use of a window sticker attached to the new qualified plug-in electric drive motor vehicle—
the amount of the credit under subsection (a) with respect to such vehicle, and
a notification that the taxpayer will not be eligible for any credit under any other section of this title with respect to such vehicle unless the taxpayer elects not to have this section apply with respect to such vehicle.
Certification
A transferee of a credit under subsection (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 or the balance due to the financier, whichever is applicable, for the new qualified plug-in electric drive motor vehicle by the entire amount of such refundable credit.
Consent required for revocation
Any transfer under paragraph (1) may be revoked only with the consent of the Secretary.
Regulations
The Secretary—
may prescribe such regulations as necessary to ensure that credit transferred under paragraph (1) is claimed once and not retransferred by a transferee, and
shall prescribe such regulations as necessary to provide a mechanism by which the transferee may claim and receive the credit as soon as practical but not longer than 90 days after the sale of the new qualified plug-in electric drive motor vehicle.
.
Display of credit information
Section 32908(b)(1) of title 49, United States Code, is amended—
by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), and
by inserting after subparagraph (D) the following new subparagraph:
the amount of the new qualified plug-in electric drive motor vehicle credit allowable with respect to the sale of the automobile under section 36D of the Internal Revenue Code of 1986.
.
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Recovery period for depreciation of smart meters and smart grid systems
In general
Subparagraph (B) of section 168(e)(3) of the Internal
Revenue Code of 1986 is amended by striking and
at the end of
clause (vi), by striking the period at the end of clause (vii) and inserting
, and
, and by adding at the end the following new
clauses:
any qualified smart electric meter, and
any qualified smart electric grid system.
.
Conforming amendments
Subparagraph (D) of section 168(e)(3) of the Internal
Revenue Code of 1986 is amended by inserting and
at the end of
clause (i), by striking the comma at the end of clause (ii) and inserting a
period, and by striking clauses (iii) and (iv).
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Business energy investment credits for certain used energy storage property
50-Percent credit allowed
Subparagraph (A) of section 48(a)(2) of the Internal Revenue Code of 1986 is amended—
by redesignating clause (ii) as clause (iii),
by inserting
or (ii)
after clause (i)
in clause (iii), as so
redesignated, and
by inserting after clause (i) the following new clause:
50 percent in the case of qualified used energy storage property which is not described in subsection (c)(5)(B), and
.
30-Percent credit for certain energy storage property used for onsite storage
Clause (i) of section 48(a)(2)(A) of the Internal Revenue Code of 1986 is amended—
by striking
and
at the end of subclause (III), and
by adding at the end the following new subclause:
qualified used energy storage property described in subsection (c)(5)(B),
.
Qualified used energy storage property
Subsection (c) of section 48 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Qualified used energy storage property
The term qualified used energy storage property means pre-owned advanced large format automotive propulsion battery cells previously used in a qualified plug-in electric drive motor vehicle (as defined in section 36D(d)) which are reconditioned into—
property—
which is designed to receive electrical energy, to store such energy, to convert such energy to electricity, and to deliver such electricity for support to the transmission or distribution grid or for sale to unrelated parties,
which has the ability to store in the aggregate not less than 50 kilowatt hours of energy,
which has the ability to attain a peak power output of 20 kilowatts, or
property—
which—
is primarily designed and used to receive and store intermittent renewable energy generated on-site and to deliver such energy for primarily on-site consumption, or
provides supplemental energy to reduce peak energy requirements on-site,
which has the ability to store the energy equivalent of not less than 20 kilowatt hours of energy, and
which has the ability to maintain an output of the energy equivalent of not less than 20 kilowatt hours of electricity for a period of not less than 2 hours.
.
Effective date
The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
Nonbusiness energy property credit for certain residential energy storage property
Credit allowed
In general
Subsection (a) of section 25C of the Internal Revenue Code of 1986 is amended—
by striking
and
at the end of paragraph (1),
by striking
expenditures paid or incurred
and all that follows in paragraph
(2) and inserting expenditures, other than expenditures for qualified
used energy storage property described in subsection (d)(7), paid or incurred
by the taxpayer during such taxable year, and
, and
by adding at the end the following new paragraph:
50 percent of the amount of the residential energy property expenditures for qualified used energy storage property described in subsection (d)(7) paid or incurred by the taxpayer during such taxable year.
.
Qualified energy property
Subparagraph (A) of section 25C(d)(2) of such Code is amended—
by striking
or
at the end of clause (ii),
by striking the
period at the end of clause (iii) and inserting , or
, and
by adding at the end the following new clause:
qualified used energy storage property.
.
Property described
Subsection (d) of section 25C of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Qualified used energy storage property
The term qualified used energy storage property means property which is comprised of reconditioned pre-owned advanced large format automotive propulsion battery cells previously used in a qualified plug-in electric drive motor vehicle (as defined in section 36D(d)) and which—
is primarily designed and used to receive and store intermittent renewable energy generated on-site and to deliver such energy for primarily on-site consumption,
provides supplemental energy to reduce peak energy requirements on-site, or
provides propulsion power for non-highway mobile applications for neighborhood or interior use.
.
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Advanced battery manufacturing assistance
In general
The Secretary of Energy (referred to in this section as the Secretary) shall make grants for the manufacturing of advanced batteries and components, and provide facility funding awards, to manufacturers of advanced battery systems and vehicle batteries that are produced in the United States, including manufacturers of advanced lithium ion batteries and hybrid electrical systems, component manufacturers, software designers, and system design and vehicle integrators.
Appointment of highly qualified individuals
In general
Subject to paragraphs (2) through (4), notwithstanding section 3304 of title 5, United States Code, and without regard to sections 3309 through 3318 of that title, the Secretary, on a determination that there is a severe shortage of candidates or a critical hiring need for particular positions, may from funds made available to carry out this section, recruit and directly appoint highly qualified individuals into the competitive service to carry out this section.
Exceptions
The authority provided under paragraph (1) shall not apply to positions in the excepted service or the Senior Executive Service.
Merit principles
Any action authorized under paragraph (1) shall be consistent with the merit principles of section 2301 of title 5, United States Code.
Public notice
In carrying out this subsection, the Secretary shall comply with the public notice requirements of section 3327 of title 5, United States Code.
Authorization of appropriations
There is authorized to be appropriated to carry out this section $2,000,000,000.