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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5393 Introduced in House (IH)]

<DOC>

116th CONGRESS
  1st Session
                                H. R. 5393

To amend the Internal Revenue Code of 1986 to revise the incentives for 
               electric vehicles, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 11, 2019

  Ms. Speier (for herself, Ms. Norton, Mrs. Torres of California, Mr. 
  Takano, Mr. Pocan, Mr. Ryan, Mrs. Watson Coleman, Ms. McCollum, Mr. 
  Vargas, Ms. Meng, Ms. Roybal-Allard, Mr. Huffman, Mr. Norcross, Mr. 
  Garamendi, Mr. Quigley, Mr. DeSaulnier, Ms. Kaptur, Mr. Sires, Mr. 
McNerney, Ms. Matsui, Mr. Crist, Mr. Lowenthal, Mr. Cuellar, Ms. Tlaib, 
  Mrs. Dingell, Ms. Brownley of California, Mr. Rouda, Ms. Moore, Mr. 
Grijalva, Mr. Cleaver, and Mr. Cardenas) 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 revise the incentives for 
               electric vehicles, 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; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Affordable 
American-made Automobile Act''.
    (b) Findings.--Congress finds the following:
            (1) The automobile industry is vital to the national 
        economy and to national security. It employs millions of 
        Americans and develops new technologies with widespread 
        civilian and military application.
            (2) The global automobile industry is already in the midst 
        of an historic transformation to electric vehicle technology. 
        This transition has profound implications for all Americans.
            (3) In critical measures of the global competition in the 
        electric vehicle industry, the United States is behind China 
        and is projected to fall further behind. The United States is 
        behind in total vehicle sales, behind in the market share of 
        new car sales, behind in investment, behind in battery 
        manufacturing capacity, and behind in manufacturing capacity. 
        The United States lags China to a great extent, but the United 
        States is in third place in this competition, behind the 
        European Union.
            (4) China sells half the electric vehicles sold in the 
        world. In addition, China's percent of new car market share of 
        electric vehicles is twice that of the United States. In a few 
        short years, the Chinese new market share of electric vehicles 
        is expected to be triple the new market share in the United 
        States.
            (5) China is predicted to control about 75 percent of the 
        global battery capacity.
            (6) Global investment in electric vehicles is expected to 
        reach $300 billion or even more; half of which is intended for 
        China and only 10 percent for the United States.
            (7) There are 17 Chinese automobile manufacturers that have 
        announced or undertaken electric vehicle investment. Even 
        assuming some consolidation of the Chinese industry, it will 
        dwarf the number of manufacturers headquartered in the United 
        States which is currently 4.
            (8) China supports its electric vehicle industry through a 
        wide array of practices including state-owned enterprises, 
        direct subsidies, special access to financing, government 
        guarantees of financing, exemptions from various regulatory 
        requirements, public purchasing, favoritism for Chinese firms, 
        restrictions on market entry to foreign competition, and 
        regulatory mandates.
            (9) Chinese domination of the electric vehicle industry 
        will inevitably erode United States automobile manufacturing 
        and the United States supply chain potentially resulting in the 
        loss of hundreds of thousands of jobs. Employment in the 
        innovation and research side of the industry has already begun 
        a migration outside the United States.
            (10) United States communities are also currently suffering 
        from extreme events of flood, wind, and fire, as well as 
        health-threatening air pollution, all of which are related to a 
        warming planet. Electric vehicles will play a critical role in 
        reducing the pollution that contributes to these tragedies.
            (11) Without changes to public policy, the automotive 
        industry in the United States will face aggressive competition 
        from foreign companies, chiefly located in China, and will 
        fight a competitive battle on grossly unequal terms due to 
        foreign government policies that unfairly favor overseas 
        manufacturers.
            (12) Such an unfair fight is unwinnable by private industry 
        alone and is therefore a national priority for the Government 
        of the United States to enter on behalf of every current and 
        future American.
            (13) The United States faces a moment of critical choice. 
        It either makes the investments necessary to achieve global 
        competitive leadership in this key industry, or it will face 
        profound and dire consequences to its economy and its national 
        security.
            (14) The United States needs to stimulate demand for 
        electric vehicles from middle class consumers. Tax incentives 
        for the development of convenient fast charging infrastructure 
        are essential. Investment is needed to support increased 
        electric vehicle and battery manufacturing capacity.

SEC. 2. EXPANSION OF TAX CREDIT FOR ELECTRIC DRIVE MOTOR VEHICLES.

    (a) Application to New and Used Battery Electric Motor Vehicles.--
            (1) In general.--Section 30D(a) of the Internal Revenue 
        Code of 1986 is amended by striking ``new qualified plug-in 
        electric drive motor vehicle'' and inserting ``credit eligible 
        electric motor vehicle''.
            (2) Per vehicle dollar limitation.--Section 30D(b) of such 
        Code is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``paragraphs (2) and (3)'' 
                        and inserting ``paragraphs (4) and (5)''; and
                            (ii) by striking ``In general'' in the 
                        heading and inserting ``New qualified plug-in 
                        electric drive motor vehicles'';
                    (B) by redesignating paragraphs (2) and (3) as 
                paragraphs (4) and (5), respectively, and inserting 
                after paragraph (1) the following new paragraphs:
            ``(2) New battery electric motor vehicles.--
                    ``(A) In general.--The amount determined under this 
                subsection with respect to any new battery electric 
                motor vehicle is--
                            ``(i) $12,000 ($15,000 in the case of new 
                        battery electric motor vehicles acquired after 
                        December 31, 2018, and before the date which is 
                        5 years after the date of the enactment of the 
                        Affordable American-made Automobile Act) if the 
                        price of such vehicle is not more than $35,000, 
                        and
                            ``(ii) $7,500 if the price of such vehicle 
                        is greater than $35,000.
                    ``(B) Determination of price.--For purposes of this 
                paragraph, the term `price' means--
                            ``(i) except as provided in clause (ii), 
                        the final sales price agreed upon by the 
                        taxpayer and the person from whom the taxpayer 
                        acquires such vehicle (determined without 
                        regard to any taxes or fees imposed by any 
                        State or local government), and
                            ``(ii) in the case of a lease, the price of 
                        the vehicle stated in the lease agreement 
                        between the lessor and lessee (as so 
                        determined).
            ``(3) Used battery electric motor vehicles.--The amount 
        determined under this subsection with respect to any used 
        battery electric motor vehicle is--
                    ``(A) $5,000 if the taxpayer trades in a vehicle 
                that is powered by an internal combustion engine in 
                connection with the taxpayer's acquisition of such used 
                battery electric motor vehicle, and
                    ``(B) $0 in any other case.''; and
                    (C) in paragraph (5) (as so redesignated), by 
                striking ``a vehicle'' and inserting ``a new qualified 
                plug-in electric drive motor vehicle''.
            (3) Credit eligible electric motor vehicle.--Section 30D(d) 
        of such Code is amended--
                    (A) by redesignating paragraphs (2), (3), and (4) 
                as paragraphs (5), (6), and (7), respectively;
                    (B) by redesignating paragraph (1) as paragraph 
                (2);
                    (C) in paragraph (2) (as so redesignated)--
                            (i) in subparagraph (F), by inserting 
                        ``utilizes an internal combustion engine and'' 
                        before ``is propelled''; and
                            (ii) by striking ``In general'' in the 
                        heading and inserting ``New qualified plug-in 
                        electric drive motor vehicle'';
                    (D) by striking all that precedes paragraph (2) (as 
                so redesignated) and inserting the following:
    ``(d) Credit Eligible Motor Vehicle.--For purposes of this 
section--
            ``(1) Credit eligible motor vehicle.--The term `credit 
        eligible motor vehicle' means--
                    ``(A) a new qualified plug-in electric drive motor 
                vehicle,
                    ``(B) a new battery electric motor vehicle, and
                    ``(C) a used battery electric motor vehicle.''; and
                    (E) by inserting after paragraph (2) (as so 
                redesignated) the following new paragraphs:
            ``(3) New battery electric motor vehicle.--The term `new 
        battery electric motor vehicle' means a motor vehicle--
                    ``(A) which meets the requirements of subparagraphs 
                (A) through (E) of paragraph (2),
                    ``(B) which is powered by a battery electric drive 
                train,
                    ``(C) which produces zero exhaust emissions of any 
                criteria pollutant (including any precursor pollutant) 
                or greenhouse gas (other than emissions from air 
                conditioning systems) under any possible operational 
                modes or conditions,
                    ``(D) the battery cell, battery pack, battery 
                cooling system, and battery management system of which 
                are all manufactured in the United States, and
                    ``(E) the assembly of which is in the United 
                States.
            ``(4) Used battery electric motor vehicle.--
                    ``(A) In general.--The term `used battery electric 
                motor vehicle' means a motor vehicle--
                            ``(i) the original use of which commences 
                        with a person other than the taxpayer,
                            ``(ii) which meets the requirements of 
                        subparagraphs (B) through (E) of paragraph (2), 
                        and
                            ``(iii) which meets the requirements of 
                        subparagraphs (B) through (E) of paragraph (3).
                    ``(B) Only 1 credit per vehicle.--No credit shall 
                be allowed under this section with respect to any used 
                battery electric motor vehicle placed in service by the 
                taxpayer if a credit is allowable under this section by 
                reason of such vehicle being placed in service at any 
                time prior to the time that such vehicle is placed in 
                service by the taxpayer (other than a credit which is 
                so allowable by reason of such vehicle being a new 
                battery electric motor vehicle).''.
    (b) Carryover of Personal Credit.--Section 30D(c)(2) of such Code 
is amended--
            (1) by striking ``For purposes'' and inserting the 
        following:
                    ``(A) In general.--For purposes''; and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Carryback and carryforward of unused 
                credits.--
                            ``(i) In general.--If the credit described 
                        in subparagraph (A) exceeds the limitation 
                        imposed by section 26(a) for the taxable year 
                        reduced by the sum of the credits allowable 
                        under subpart A (determined without regard to 
                        the credit described in subparagraph (A)), such 
                        excess shall be--
                                    ``(I) carried back to the taxable 
                                year preceding the taxable year in 
                                which such amount arose, and
                                    ``(II) carried forward to the 5 
                                taxable years following the taxable 
                                year in which such amount arose.
                            ``(ii) Limitation.--For purposes of clause 
                        (i), the amount of credit carried back or 
                        forward under such clause--
                                    ``(I) shall be taken into account 
                                as a credit described in subparagraph 
                                (A) for the taxable year to which 
                                carried (except, in the case of a 
                                carryback, such amount shall not be 
                                taken into account for purposes of 
                                applying clause (i) to such taxable 
                                year), and
                                    ``(II) such amounts shall be 
                                treated as used on a first-in, first-
                                out basis, determined on the basis of 
                                the taxable year in which such amount 
                                arose.''.
    (c) Assignment of Credit to Financing Entity.--Section 30D(f) of 
such Code is amended by adding at the end the following new paragraph:
            ``(8) Credit may be assigned to financing entity.--
                    ``(A) In general.--In the case of a credit 
                determined under subsection (a) with respect to a new 
                qualified plug-in electric drive motor vehicle or a new 
                battery electric motor vehicle, the taxpayer to whom 
                such credit would (but for this paragraph) be allowed 
                under subsection (a) for any taxable year may assign 
                such credit to the person who financed the purchase (or 
                lease of at least 2 years) of such vehicle. Any person 
                to whom such credit is assigned under the preceding 
                sentence shall be treated for purposes of this title as 
                the taxpayer who placed such vehicle in service.
                    ``(B) Disclosure requirement.--Subparagraph (A) 
                shall not apply with respect to any vehicle unless the 
                person to whom the credit is assigned clearly discloses 
                in writing to the taxpayer the amount of the credit 
                allowable under subsection (a) with respect to such 
                vehicle (determined without regard to subsection 
                (c)).''.
    (d) Modification of Termination of Credit.--
            (1) Repeal of manufacturers limitation.--Section 30D of 
        such Code is amended by striking subsection (e).
            (2) Termination of credit.--Section 30D of such Code is 
        amended by adding at the end the following new subsection:
    ``(h) Termination.--This section shall not apply to any vehicle 
placed in service after December 31, 2030.''.
    (e) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        vehicles acquired after December 31, 2018.
            (2) Carryforward.--The amendments made by subsection (b) 
        shall apply to vehicles acquired after the date of the 
        enactment of this Act.
            (3) Assignment.--The amendment made by subsection (c) shall 
        apply to vehicles acquired after the date which is 60 days 
        after the date of the enactment of this Act.

SEC. 3. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT EXTENDED FOR 
              ELECTRIC VEHICLE CHARGING STATIONS.

    (a) Extension.--Section 30C(g) of the Internal Revenue Code of 1986 
is amended by striking ``December 31, 2017'' and inserting ``December 
31, 2030''.
    (b) Repeal of Limitation.--Section 30C of such Code is amended by 
striking subsection (b).
    (c) Application to Electric Vehicle Charging Stations.--
            (1) In general.--Section 30C(a) of such Code is amended by 
        striking ``qualified alternative fuel vehicle refueling 
        property'' and inserting ``electric vehicle charging station''.
            (2) Electric vehicle charging station defined.--Section 
        30C(c) of such Code is amended to read as follows:
    ``(c) Electric Vehicle Charging Station.--For purposes of this 
section, the term `electric vehicle charging station' means a station 
designed for recharging an electric battery of a credit eligible motor 
vehicle (as defined in section 30D(d), but determined without regard to 
the requirements of subparagraphs (D) and (E) of paragraph (3) 
thereof).''.
    (d) Conforming Amendments.--
            (1) Section 30C(e)(2) of such Code is amended by striking 
        ``qualified alternative fuel vehicle refueling property'' and 
        inserting ``electric vehicle charging station''.
            (2) Section 30C(e) of such Code is amended by striking 
        paragraph (6) and redesignating paragraph (7) as paragraph (6).
            (3) Section 38(b)(25) of such Code is amended by striking 
        ``alternative fuel vehicle refueling property credit'' and 
        inserting ``electric vehicle charging station credit''.
            (4) The heading of section 30C of such Code (and the item 
        relating to such section in the table of sections for subpart B 
        of part IV of subchapter A of chapter 1 of such Code) is 
        amended by striking ``alternative fuel vehicle refueling 
        property'' and inserting ``electric vehicle recharging 
        station''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2018.

SEC. 4. PRIVATE ACTIVITY BONDS RELATED TO ELECTRIC VEHICLE 
              MANUFACTURING.

    (a) In General.--Section 142(a) of the Internal Revenue Code of 
1986 is amended by striking ``or'' at the end of paragraph (14), by 
striking the period at the end of paragraph (15) and inserting ``, 
or'', and by adding at the end the following new paragraph:
            ``(16) a qualified battery electric motor vehicle 
        manufacturing facility or a qualified electric vehicle battery 
        manufacturing facility.''.
    (b) Facilities Defined.--Section 142 of such Code is amended by 
adding at the end the following new subsection:
    ``(n) Qualified Battery Electric Motor Vehicle Manufacturing and 
Qualified Electric Vehicle Battery Manufacturing Facilities.--
            ``(1) In general.--For purposes of subsection (a)(16)--
                    ``(A) the term `qualified battery electric motor 
                vehicle manufacturing facility' means a battery 
                electric motor vehicle manufacturing facility 
                designated by the Secretary under this subsection, and
                    ``(B) the term `qualified electric vehicle battery 
                manufacturing facility' means an electric vehicle 
                battery manufacturing facility designated by the 
                Secretary under this subsection.
            ``(2) Battery electric motor vehicle manufacturing 
        facility.--For purposes of this subsection--
                    ``(A) In general.--The term `battery electric motor 
                vehicle manufacturing facility' means a facility for 
                manufacturing battery electric motor vehicles.
                    ``(B) Battery electric motor vehicles.--The term 
                `battery electric motor vehicle' means an automobile 
                which is powered by a battery electric drive train and 
                which produces zero exhaust emissions of any criteria 
                pollutant (including any precursor pollutant) or 
                greenhouse gas (other than emissions from air 
                conditioning systems) under any possible operational 
                modes or conditions.
            ``(3) Electric vehicle battery manufacturing facility.--The 
        term `electric vehicle battery manufacturing facility' means a 
        facility for manufacturing batteries for use in battery 
        electric motor vehicles.
            ``(4) Aggregate limitation on designations.--
                    ``(A) In general.--An issue shall not be treated as 
                an issue described in subsection (a)(16) if the 
                aggregate face amount of bonds issued by the State or 
                local government pursuant thereto for any facility 
                (when added to the aggregate face amount of bonds 
                previously so issued for such facility) exceeds the 
                amount allocated to such facility by the Secretary 
                under this subsection.
                    ``(B) Aggregate limitation.--The Secretary many not 
                allocate more than $15,000,000,000 to facilities 
                designated under this subsection.
            ``(5) Standards for designation.--The Secretary shall not 
        designate a facility for purposes of this subsection unless--
                    ``(A) an application has been submitted to the 
                Secretary with respect to such facility which meets the 
                requirements of paragraph (7),
                    ``(B) such facility is located in the United 
                States,
                    ``(C) such facility has been nominated by a State 
                or local government during the 180-day period ending 
                with the date of such application, and
                    ``(D) such State or local government provides 
                written assurances of the accuracy of the application 
                with respect to such facility.
            ``(6) Priority for retooling of existing facilities.--The 
        Secretary shall give priority in making designations and 
        allocations under this subsection to the retooling of existing 
        manufacturing facilities, especially the oldest facilities or 
        facilities that have been in existence for at least 20 years 
        (whether or not such facilities are idle).
            ``(7) Conditional designations.--The Secretary may approve 
        a designation under this subsection subject to such conditions 
        as the Secretary may determine are necessary to satisfy the 
        purposes of this subsection or to protect the national security 
        interests of the United States.
            ``(8) Application.--An application with respect to a 
        facility for designation under this subsection shall include--
                    ``(A) a written agreement that--
                            ``(i) all laborers and mechanics employed 
                        by contractors or subcontractors during 
                        construction, alteration, or repair that is 
                        financed, in whole or in part, by the proceeds 
                        of the issue shall be paid wages at rates not 
                        less than those prevailing on similar 
                        construction in the locality, as determined by 
                        the Secretary of Labor in accordance with 
                        sections 3141-3144, 3146, and 3147 of title 40, 
                        United States Code, and
                            ``(ii) the Secretary of Labor shall, with 
                        respect to the labor standards described in 
                        clause (i), have the authority and functions 
                        set forth in Reorganization Plan Numbered 14 of 
                        1950 (5 U.S.C. App.) and section 3145 of title 
                        40, United States Code,
                    ``(B) evidence satisfactory to the Secretary that 
                the project will improve the global competitive 
                position of the United States in the electric vehicle 
                industry, will stimulate the regional economy at the 
                facility location, and will provide quality jobs and 
                labor standards consistent with the United States 
                automobile industry, and
                    ``(C) a demonstration that the facility includes 
                the use of energy efficiency, renewable energy, and 
                other sustainable design features to the extent 
                feasible.
            ``(9) Time limit on expenditure of bond proceeds.--An issue 
        shall not be treated as an issue described in subsection 
        (a)(16) unless at least 95 percent of the net proceeds of the 
        issue are expended for the facility designated under this 
        subsection within the 5-year period beginning on the date of 
        issuance. If at least 95 percent of such net proceeds is not so 
        expended within such 5-year period, an issue shall be treated 
        as continuing to be described in subsection (a)(16) if the 
        issuer uses all remaining proceeds of the issue to redeem bonds 
        of the issue within 90 days after the end of such 5-year 
        period. The Secretary, at the request of the issuer, may extend 
        such 5-year period if the issuer establishes that the failure 
        to make such expenditures is due to circumstances beyond the 
        control of the issuer.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.
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