I 

111TH CONGRESS 

1ST SESSION H. R. 1808 

To amend the Internal Revenue Code of 1986 to provide for consumer 

rebates for purchases of certain new passenger motor vehicles. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 31, 2009 

Ms. SPEIER (for herself and Mr. THOMPSON of California) 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 provide 

for consumer rebates for purchases of certain new passenger motor vehicles. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Clean Car Rebate Act 

5 of 2009’’. 

6 SEC. 2. CONSUMER REBATE FOR PURCHASES OF CERTAIN 

7 NEW PASSENGER MOTOR VEHICLES. 

8 (a) IN GENERAL.—Subpart C of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by inserting after section 36 the fol2 lowing new section: 

3 ‘‘SEC. 36A. CONSUMER REBATE FOR PURCHASES OF CER4 TAIN NEW PASSENGER MOTOR VEHICLES. 

5 ‘‘(a) IN GENERAL.—There shall be allowed as a cred6 it against the tax imposed by this chapter for the taxable 

7 year the applicable amount for each qualified vehicle 

8 placed in service by the taxpayer in the taxable year. 

9 ‘‘(b) APPLICABLE AMOUNT.—For purposes of sub10 section (a)— 

11 ‘‘(1) 2009.—In the case of a taxable year be12 ginning in 2009, the applicable amount shall be de13 termined in accordance with the following table: 

‘‘If miles per gallon rating for the 

qualified vehicle for 2009 is: 

The applicable amount is: 

Less than 28 mpg ........................................................................ $0

28 mpg or more but not more than 29 mpg ............................... $1,000

More than 29 mpg but not more than 30 mpg ........................... $1,500

More than 30 mpg but not more than 32 mpg ........................... $2,000

More than 32 mpg ....................................................................... $2,500. 

14 ‘‘(2) 2010.—In the case of a taxable year be15 ginning in 2010, the applicable amount shall be de16 termined in accordance with the following table: 

‘‘If miles per gallon rating for the 

qualified vehicle for 2010 is: 

The applicable amount is: 

Less than 30 mpg ........................................................................ 0

30 mpg or more but not more than 31 mpg ............................... $1,000

More than 31 mpg but not more than 34 mpg ........................... $1,500

More than 34 mpg ....................................................................... $2,500. 

17 ‘‘(3) AFTER 2010.—For taxable years beginning 

18 after December 31, 2010, the Secretary, in consulta19 tion with the Environmental Protection Agency, 


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1 shall prescribe tables under which the applicable 

2 amount is determined in accordance with the fol3 lowing: 

4 ‘‘(A) The applicable amount shall be deter5 mined in such a manner as to create substantial 

6 consumer demand by 2015 for new passenger 

7 motor vehicles with fuel economy that meets or 

8 exceeds the requirements of corporate average 

9 fuel economy for passenger automobiles pursu10 ant to section 32902 of title 49, United States 

11 Code, otherwise required of manufacturers by 

12 2020. 

13 ‘‘(B) The aggregate amount of revenue 

14 foregone to the United States Treasury for any 

15 calendar year by reason of the credit allowable 

16 under this section for taxable years beginning 

17 in such calendar year does not exceed the sum 

18 of— 

19 ‘‘(i) the aggregate amount of such 

20 revenue foregone under this section for 

21 taxable years beginning in calendar year 

22 2009, plus 

23 ‘‘(ii) 10 percent of the amount deter24 mined under clause (i). 


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1 ‘‘(c) QUALIFIED VEHICLE.—For purposes of this sec2 tion, the term ‘qualified vehicle’ means a motor vehicle— 

3 ‘‘(1) which is subject to average fuel economy 

4 standards pursuant to section 32902 of title 49, 

5 United States Code, for passenger automobiles, 

6 ‘‘(2) the original use of which commences with 

7 the taxpayer, 

8 ‘‘(3) which is acquired for use or lease by the 

9 taxpayer and not for resale, and 

10 ‘‘(4) which is made by a manufacturer. 

11 ‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.— 

12 ‘‘(1) MILES PER GALLON RATING.—The term 

13 ‘miles per gallon rating’ means the combined fuel 

14 economy estimates provided by the Environmental 

15 Protection Agency. 

16 ‘‘(2) MOTOR VEHICLE.—The term ‘motor vehi17 cle’ has the meaning given such term by section 

18 30(c)(2). 

19 ‘‘(3) COORDINATION WITH ADVANCE PAYMENTS

20 OF CREDIT.—With respect to any taxable year, the 

21 amount which would (but for this paragraph) be al22 lowed as a credit to the taxpayer under subsection 

23 (a) with respect to any qualified vehicle shall be re24 duced (but not below zero) by the aggregate amount 


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1 paid to such taxpayer under section 6431 with re2 spect to such vehicle. 

3 ‘‘(4) REDUCTION IN BASIS.—For purposes of 

4 this subtitle, the basis of any property for which a 

5 credit is allowable under subsection (a) shall be re6 duced by the amount of such credit so allowed. 

7 ‘‘(5) NO DOUBLE BENEFIT.— 

8 ‘‘(A) IN GENERAL.—Except as provided by 

9 subparagraph (B), the amount of any deduction 

10 or other credit allowable under this chapter for 

11 a qualified vehicle shall be reduced by the 

12 amount of credit allowed under subsection (a) 

13 for such vehicle for the taxable year. 

14 ‘‘(B) COORDINATION WITH SECTIONS 30B

15 AND 30D.—Subparagraph (A) shall not apply to 

16 with respect to the credit allowed under section 

17 30B or 30D and the credit allowed under sub18 section (a) with respect to a qualified vehicle 

19 shall be in addition to any credit allowed under 

20 section 30B or 30D with respect such vehicle. 

21 ‘‘(6) PROPERTY USED BY TAX-EXEMPT ENTI22 TY.—In the case of a vehicle the use of which is de23 scribed in paragraph (3) or (4) of section 50(b) and 

24 which is not subject to a lease, the person who sold 

25 such vehicle to the person or entity using such vehiVerDate Nov 24 2008 00:04 Apr 02, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1808.IH H1808

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1 cle shall be treated as the taxpayer that placed such 

2 vehicle in service, but only if such person clearly dis3 closes to such person or entity in a document the 

4 amount of any credit allowable under subsection (a) 

5 with respect to such vehicle (determined without re6 gard to subsection (b)(2)). 

7 ‘‘(7) PROPERTY USED OUTSIDE UNITED

8 STATES, ETC, NOT QUALIFIED.—No credit shall be 

9 allowable under subsection (a) with respect to any 

10 property referred to in section 50(b)(1) or with re11 spect to the portion of the cost of any property 

12 taken into account under section 179. 

13 ‘‘(8) RECAPTURE.—The Secretary shall, by reg14 ulations, provide for recapturing the benefit of any 

15 credit allowable under subsection (a) with respect to 

16 any property which ceases to be property eligible for 

17 such credit (including recapture in the case of a 

18 lease period of less than the economic life of a vehi19 cle). 

20 ‘‘(9) ELECTION TO NOT TAKE CREDIT.—No 

21 credit shall be allowed under subsection (a) for any 

22 vehicle if the taxpayer elects not to have this section 

23 apply to such vehicle. 

24 ‘‘(10) INTERACTION WITH AIR QUALITY AND

25 MOTOR VEHICLE SAFETY STANDARDS.—Unless othVerDate Nov 24 2008 00:04 Apr 02, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1808.IH H1808

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1 erwise provided in this section, a motor vehicle shall 

2 not be considered eligible for a credit under this sec3 tion unless such vehicle is in compliance with— 

4 ‘‘(A) the applicable provisions of the Clean 

5 Air Act for the applicable make and model year 

6 of the vehicle (or applicable air quality provi7 sions of State law in the case of a State which 

8 has adopted such provision under a waiver 

9 under section 209(b) of the Clean Air Act), and 

10 ‘‘(B) the motor vehicle safety provisions of 

11 sections 30101 through 30169 of title 49, 

12 United States Code. 

13 ‘‘(e) TERMINATION.—This section shall not apply 

14 with respect to any property purchased after December 

15 31, 2014.’’. 

16 (b) ADVANCE PAYMENT OF CREDIT.—Subchapter B 

17 of chapter 65 of the Internal Revenue Code of 1986 is 

18 amended by adding at the end the following new section: 

19 ‘‘SEC. 6431. CONSUMER REBATE FOR PURCHASES OF CER20 TAIN NEW PASSENGER MOTOR VEHICLES. 

21 ‘‘(a) GENERAL RULE.—Not later than 3 months 

22 after the date of the enactment of this section, the Sec23 retary shall establish a program for making payments to 

24 certified individuals of the applicable amount with respect 

25 to a qualified vehicle. 


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1 ‘‘(b) CERTIFIED INDIVIDUAL.—For purposes of this 

2 section, the term ‘certified individual’ means any indi3 vidual for whom a qualified passenger motor vehicle eligi4 bility certificate is in effect. 

5 ‘‘(c) QUALIFIED PASSENGER MOTOR VEHICLE ELI6 GIBILITY CERTIFICATE.—For purposes of this section, the 

7 term ‘qualified passenger motor vehicle eligibility certifi8 cate’ means any written statement that an individual is 

9 entitled to a credit under section 36A if such statement 

10 provides such information as the Secretary may require 

11 for purposes of this section. 

12 ‘‘(d) TIMING OF PAYMENTS.—The Secretary shall, 

13 subject to the provisions of this title, refund or credit any 

14 overpayment attributable to this section as rapidly as pos15 sible. 

16 ‘‘(e) REGULATIONS.—The Secretary may issue such 

17 regulations or other guidance as may be necessary or ap18 propriate to carry out this section, including the require19 ment to report information or the establishment of other 

20 methods for verifying the correct amounts of payments 

21 and credits under section 36A.’’. 

22 (c) ADMINISTRATIVE AMENDMENTS.— 

23 (1) DEFINITION OF DEFICIENCY.—Section 

24 6211(b)(4)(A) of the Internal Revenue Code of 1986 

25 is amended by inserting ‘‘36A,’’ after ‘‘36,’’. 


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1 (2) MATHEMATICAL OR CLERICAL ERROR AU2 THORITY.—Section 6213(g)(2) of such Code is 

3 amended by striking ‘‘and’’ at the end of subpara4 graph (L), by striking the period at the end of sub5 paragraph (M) and inserting ‘‘, and’’, and by insert6 ing after subparagraph (M) the following new sub7 paragraph: 

8 ‘‘(N) an omission of information required 

9 pursuant to section 36431(e) (relating to con10 sumer rebate for purchases of certain new pas11 senger motor vehicles).’’. 

12 (d) CONFORMING AND CLERICAL AMENDMENTS.— 

13 (1) Section 1324(b)(2) of title 31, United 

14 States Code, is amended by inserting ‘‘36A,’’ after 

15 ‘‘36,’’. 

16 (2) The table of sections for subpart C of part 

17 IV of subchapter A of chapter 1 of the Internal Rev18 enue Code of 1986 is amended by inserting after the 

19 item relating to section 36 the following new item: 

‘‘Sec. 36A. Consumer rebate for purchases of certain new passenger motor vehicles.’’. 

20 (3) The table of sections for subchapter B of 

21 chapter 65 of such Code is amended by adding at 

22 the end the following new item: 

‘‘Sec. 6431. Consumer rebate for purchases of certain new passenger motor vehicles.’’. 


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1 (e) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property placed in service in 

3 taxable years beginning after December 31, 2008. 

Æ 


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