H.R. 7904 – To amend the Internal Revenue Code of 1986 to extend tax credits for clean vehi…

AI-Generated Summary

Updated January 20, 2026 at 3:45 PM UTC

The bill changes the Internal Revenue Code to let clean‑vehicle tax credits apply to property used mainly in U.S. possessions such as Puerto Rico, Guam, and the Virgin Islands. It also sets up a way for the Treasury to make payments to those territories, either directly or through their own tax systems. The changes affect owners of qualifying clean vehicles in the territories and the federal agencies that administer the credits.

Key Provisions

Amends the definition of eligible property so that clean‑vehicle credits can be claimed for property used predominantly in a U.S. possession, overriding the usual “no credit” rule.
Adds a new paragraph that lets territories with a mirror tax code choose whether U.S. tax law applies to the credit, and requires the Secretary to pay equivalent credit amounts to territories without such a system, provided they have an approved distribution plan.
Updates Section 25E to include similar payment rules for clean‑vehicle credits to U.S. possessions.
Specifies that these amendments take effect as if they were part of the related public law already enacted.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 9, 2024

View full timeline

HouseIntro Referral

Introduced in House

April 9, 2024

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 9, 2024

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in HouseIssued April 9, 2024

I

118th CONGRESS

2d Session

H. R. 7904

IN THE HOUSE OF REPRESENTATIVES

April 9, 2024

Mrs. González-Colón (for herself and Mr. Soto) 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 extend tax credits for clean vehicles to possessions of the United States.

1.

Clean vehicle credits extended to possessions of the United States

(a)

Extension of eligibility for credits to possessions of the United States

Section 30D(f)(4) of the Internal Revenue Code of 1986 is amended—

(1)

in the heading, by striking Property and inserting Certain property,

(2)

by striking No credit and inserting:

(A)

In general

Except as provided in subparagraph (B), no credit

, and

(3)

by adding at the end the following:

(B)

Exception for property used in possessions

In the case of property which is used predominantly in a possession of the United States, the credit allowable under subsection (a) shall be determined without regard to subparagraph (A).

.

(b)

Payments to possessions

(1)

In general

Section 30D(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(12)

Payments to possessions

(A)

Payments to possessions with mirror code tax systems

In the case of any possession of the United States with a mirror code tax system, this section shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated.

(B)

Payments to other possessions

The Secretary shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the provisions of this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan which has been approved by the Secretary under which such possession will promptly distribute such payments to its residents.

(C)

Mirror code tax system; treatment of payments

Rules similar to the rules of paragraphs (3), (4), and (5) of section 21(h) shall apply for purposes of this section.

.

(2)

Previously-owned clean vehicles

Section 25E of such Code is amended—

(A)

by redesignating subsection (g) as subsection (h), and

(B)

by inserting after subsection (f) the following new subsection:

(g)

Payments to possessions

Rules similar to the rules of paragraph (12) of section 30D(f) shall apply.

.

(c)

Effective date

The amendments made by this section shall take effect as if included in the provisions of Public Law 117–169 to which they relate.