To amend the Internal Revenue Code of 1986 to modify the electric motor vehicle credit, including an expansion of the credit to certain 3-wheeled vehicles.

Summary: Wider Incentives for Non-Gasoline Small Electric Vehicles Act of 2002 or the WINGS EV Act of 2002 - Amends the Internal Revenue Code, concerning the electric motor vehicle credit, to: (1) redefine the term "qualified electric vehicle"; (2) increase the credit according to vehicle type; (3) make the credit available for leased vehicles and three wheeled vehicles; and (4) extend the credit three additional years.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Wider Incentives for Non-Gasoline 
Small Electric Vehicles Act of 2002'' or the ``WINGS EV Act of 2002''.

SEC. 2. MODIFICATION OF CREDIT FOR QUALIFIED ELECTRIC VEHICLES.

    (a) Amount of Credit.--
            (1) In general.--Section 30(a) of the Internal Revenue Code 
        of 1986 (relating to allowance of credit) is amended by 
        striking ``10 percent of''.
            (2) Limitation of credit according to type of vehicle.--
        Section 30(b) of such Code (relating to limitations) is 
        amended--
                    (A) by striking paragraphs (1) and (2) and 
                inserting the following:
            ``(1) Limitation according to type of vehicle.--The amount 
        of the credit allowed under subsection (a) for any vehicle 
        shall not exceed the greatest of the following amounts 
        applicable to such vehicle:
                    ``(A) In the case of a vehicle which conforms to 
                the Motor Vehicle Safety Standard 500 prescribed by the 
                Secretary of Transportation and in the case of an 
                eligible 3-wheeled vehicle, the lesser of--
                            ``(i) 10 percent of the manufacturer's 
                        suggested retail price of the vehicle, or
                            ``(ii) $4,000.
                    ``(B) In the case of a vehicle not described in 
                subparagraph (A) with a gross vehicle weight rating not 
                exceeding 8,500 pounds--
                            ``(i) $4,000, or
                            ``(ii) $6,000, if such vehicle is--
                                    ``(I) capable of a driving range of 
                                at least 100 miles on a single charge 
                                of the vehicle's rechargeable batteries 
                                and measured pursuant to the urban 
                                dynamometer schedules under appendix I 
                                to part 86 of title 40, Code of Federal 
                                Regulations, or
                                    ``(II) capable of a payload 
                                capacity of at least 1000 pounds.
                    ``(C) In the case of a vehicle with a gross vehicle 
                weight rating exceeding 8,500 but not exceeding 14,000 
                pounds, $10,000.
                    ``(D) In the case of a vehicle with a gross vehicle 
                weight rating exceeding 14,000 but not exceeding 26,000 
                pounds, $20,000.
                    ``(E) In the case of a vehicle with a gross vehicle 
                weight rating exceeding 26,000 pounds, $40,000.'', and
                    (B) by redesignating paragraph (3) as paragraph 
                (2).
            (3) Conforming amendments.--
                    (A) Section 53(d)(1)(B)(iii) of such Code is 
                amended by striking ``section 30(b)(3)(B)'' and 
                inserting ``section 30(b)(2)(B)''.
                    (B) Section 55(c)(2) of such Code is amended by 
                striking ``30(b)(3)'' and inserting ``30(b)(2)''.
    (b) Qualified Battery Electric Vehicle.--
            (1) In general.--Section 30(c)(1)(A) of the Internal 
        Revenue Code of 1986 (defining qualified electric vehicle) is 
        amended to read as follows:
                    ``(A) which is--
                            ``(i) operated solely by use of a battery 
                        or battery pack, or
                            ``(ii) powered primarily through the use of 
                        an electric battery or battery pack using a 
                        flywheel or capacitor which stores energy 
                        produced by an electric motor through 
                        regenerative braking to assist in vehicle 
                        operation,''.
            (2) Eligible 3-wheeled vehicles included.--Subsection (c) 
        of section 30 of such Code is amended by adding at the end the 
        following new paragraph:
            ``(3) Eligible 3-wheeled vehicles included.--
                    ``(A) In general.--An eligible 3-wheeled vehicle 
                shall not fail to be treated as a qualified battery 
                electric vehicle by reason of having only 3 wheels.
                    ``(B) Eligible 3-wheeled vehicle.--The term 
                `eligible 3-wheeled vehicle' means any vehicle which--
                            ``(i) conforms to the motor vehicle safety 
                        standards prescribed by the Secretary of 
                        Transportation that are applicable to 
                        motorcycles, and
                            ``(ii) is capable of a driving range of at 
                        least 50 miles on a single charge of the 
                        vehicle's rechargeable batteries and measured 
                        pursuant to the urban dynamometer schedules 
                        under appendix I to part 86 of title 40, Code 
                        of Federal Regulations.''
            (3) Leased vehicles.--Section 30(c)(1)(C) of such Code is 
        amended by inserting ``or lease'' after ``use''.
            (4) Conforming amendments.--
                    (A) Subsections (a), (b)(2), and (c) of section 30 
                of such Code are each amended by inserting ``battery'' 
                after ``qualified'' each place it appears.
                    (B) The heading of subsection (c) of section 30 of 
                such Code is amended by inserting ``Battery'' after 
                ``Qualified''.
                    (C) The heading of section 30 of such Code is 
                amended by inserting ``battery'' after ``qualified''.
                    (D) The item relating to section 30 of such Code in 
                the table of sections for subpart B of part IV of 
                subchapter A of chapter 1 is amended by inserting 
                ``battery'' after ``qualified''.
                    (E) Section 179A(c)(3) of such Code is amended by 
                inserting ``battery'' before ``electric''.
                    (F) The heading of paragraph (3) of section 179A(c) 
                of such Code is amended by inserting ``battery'' before 
                ``electric''.
    (c) Additional Special Rules.--Section 30(d) of the Internal 
Revenue Code of 1986 (relating to special rules) is amended by adding 
at the end the following:
            ``(5) No double benefit.--The amount of any deduction or 
        credit allowable under this chapter for any cost taken into 
        account in computing the amount of the credit determined under 
        subsection (a) shall be reduced by the amount of such credit 
        attributable to such cost.
            ``(6) Property used by tax-exempt entities.--In the case of 
        a credit amount which is allowable with respect to a vehicle 
        which is acquired by an entity exempt from tax under this 
        chapter, the person which sells or leases such vehicle to the 
        entity shall be treated as the taxpayer with respect to the 
        vehicle for purposes of this section and the credit shall be 
        allowed to such person, but only if the person clearly 
        discloses to the entity in any sale or lease contract the 
        specific amount of any credit otherwise allowable to the entity 
        under this section and reduces the sale or lease price of such 
        vehicle by an equivalent amount of such credit.''.
    (d) Extension.--Section 30(e) of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ``2004'' and inserting 
``2007''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2001, in taxable 
years ending after such date.