I 

111TH CONGRESS 

1ST SESSION H. R. 2069 

To amend the Internal Revenue Code of 1986 to provide a credit for the 

purchase of new motor vehicles. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 23, 2009 

Mr. HOEKSTRA 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 

a credit for the purchase of new 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 ‘‘Credit for New Cars 

5 Act of 2009’’. 

6 SEC. 2. CREDIT FOR NEW MOTOR VEHICLE PURCHASES. 

7 (a) IN GENERAL.—Subpart B of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 (relating to other credits) is amended by adding at 

10 the end the following new section: 


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1 ‘‘SEC. 30E. NEW MOTOR VEHICLES. 

2 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al3 lowed as a credit against the tax imposed by this chapter 

4 for the taxable year an amount equal to $3,000 with re5 spect to each qualified motor vehicle placed in service by 

6 the taxpayer during the taxable year. 

7 ‘‘(b) LIMITATION ON VALUE OF VEHICLES TAKEN

8 INTO ACCOUNT.—No credit shall be allowed under sub9 section (a) with respect to any vehicle the fair market 

10 value of which equals or exceeds $40,000 (determined im11 mediately before such vehicle is placed in service by the 

12 taxpayer). 

13 ‘‘(c) LIMITATIONS WITH RESPECT TO BUSINESS

14 CREDIT.— 

15 ‘‘(1) 50 PERCENT OF CREDIT ALLOWED.—50 

16 percent of so much of the credit which would be al17 lowed under subsection (a) for any taxable year (de18 termined without regard to this subsection) that is 

19 attributable to qualfied motor vehicles of a character 

20 subject to an allowance for depreciation shall be 

21 treated as a credit listed in section 38(b) for such 

22 taxable year (and not allowed under subsection (a)). 

23 ‘‘(2) NOT MORE THAN 2 VEHICLES TAKEN INTO

24 ACCOUNT.—Not more than 2 qualified motor vehi25 cles may be taken into account under paragraph (1). 


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1 ‘‘(3) AGGREGATION RULE.—All persons treated 

2 as a single employer under subsection (a) or (b) of 

3 section 52, or subsection (m) or (o) of section 414, 

4 shall be treated as one person for purposes of the 

5 credit determined under this subsection. 

6 ‘‘(d) PERSONAL CREDIT.— 

7 ‘‘(1) IN GENERAL.—For purposes of this title, 

8 the credit allowed under subsection (a) for any tax9 able year (determined without regard ot any quali10 fied motor vehicle of a character subject to an allow11 ance for depreciation) shall be treated as a credit al12 lowable under subpart A for such taxable year. 

13 ‘‘(2) LIMITATION BASED ON AMOUNT OF

14 TAX.—In the case of a taxable year to which section 

15 26(a)(2) does not apply, the credit allowed under 

16 subsection (a) for any taxable year (determined 

17 without regard ot any qualified motor vehicle of a 

18 character subject to an allowance for depreciation) 

19 shall not exceed the excess of— 

20 ‘‘(A) the sum of the regular tax liability 

21 (as defined in section 26(b)) plus the tax im22 posed by section 55, over 

23 ‘‘(B) the sum of the credits allowable 

24 under subpart A (other than this section and 


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1 sections 23, 25D, 30, and 30D) and section 27 

2 for the taxable year. 

3 ‘‘(e) QUALIFIED MOTOR VEHICLE.—For purposes of 

4 this section— 

5 ‘‘(1) IN GENERAL.—The term ‘qualified motor 

6 vehicle’ means a motor vehicle— 

7 ‘‘(A) the original use of which commences 

8 with the taxpayer, 

9 ‘‘(B) which is acquired for use or lease by 

10 the taxpayer and not for resale, and 

11 ‘‘(C) which is made by a manufacturer, 

12 ‘‘(D) the final assembly of which is in the 

13 United States, 

14 ‘‘(E) which is treated as a motor vehicle 

15 for purposes of title II of the Clean Air Act, 

16 and 

17 ‘‘(F) which has a gross vehicle weight rat18 ing of not more than 8,500 pounds. 

19 ‘‘(2) MOTOR VEHICLE; MANUFACTURER.—The 

20 terms ‘motor vehicle’ and ‘manufacturer’ have the 

21 meaning given such terms in section 30D(d). 

22 ‘‘(f) SPECIAL RULES.—For purposes of this sec23 tion— 

24 ‘‘(1) REDUCTION IN BASIS.—For purposes of 

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


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1 credit is allowable under subsection (a) shall be re2 duced by the amount of such credit so allowed (de3 termined without regard to subsections (c) and (d)). 

4 ‘‘(2) NO DOUBLE BENEFIT.—The amount of 

5 any deduction or other credit allowable under this 

6 chapter for a qualified motor vehicle shall be reduced 

7 by the amount of credit allowed under subsection (a) 

8 for such vehicle (determined without regard to sub9 sections (c) and (d)). 

10 ‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTI11 TY.—In the case of a vehicle the use of which is de12 scribed in paragraph (3) or (4) of section 50(b) and 

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

14 such vehicle to the person or entity using such vehi15 cle shall be treated as the taxpayer that placed such 

16 vehicle in service, but only if such person clearly dis17 closes to such person or entity in a document the 

18 amount of any credit allowable under subsection (a) 

19 with respect to such vehicle (determined without re20 gard to subsections (c) and (d)). Property to which 

21 this paragraph applies shall be treated for purposes 

22 of subsections (c) and (d) as property of a character 

23 subject to an allowance for depreciation. 

24 ‘‘(4) PROPERTY USED OUTSIDE UNITED STATES

25 NOT QUALIFIED.—No credit shall be allowable under 


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1 subsection (a) with respect to any property referred 

2 to in section 50(b)(1). 

3 ‘‘(5) RECAPTURE.—The Secretary shall, by reg4 ulations, provide for recapturing the benefit of any 

5 credit allowable under subsection (a) with respect to 

6 any property which ceases to be property eligible for 

7 such credit. 

8 ‘‘(6) ELECTION TO NOT TAKE CREDIT.—No 

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

10 vehicle if the taxpayer elects not to have this section 

11 apply to such vehicle. 

12 ‘‘(7) INTERACTION WITH AIR QUALITY AND

13 MOTOR VEHICLE SAFETY STANDARDS.—Unless oth14 erwise provided in this section, a motor vehicle shall 

15 not be considered eligible for a credit under this sec16 tion unless such vehicle is in compliance with— 

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

18 Air Act for the applicable make and model year 

19 of the vehicle (or applicable air quality provi20 sions of State law in the case of a State which 

21 has adopted such provision under a waiver 

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

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

24 sections 30101 through 30169 of title 49, 

25 United States Code. 


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1 ‘‘(g) TERMINATION.—No credit shall be allowed 

2 under this section with respect to any vehicle placed in 

3 service after December 31, 2009.’’. 

4 (b) CREDIT MADE PART OF GENERAL BUSINESS

5 CREDIT.—Section 38(b) of such Code is amended by strik6 ing ‘‘plus’’ at the end of paragraph (34), by striking the 

7 period at the end of paragraph (35) and inserting ‘‘, plus’’, 

8 and by adding at the end the following new paragraph: 

9 ‘‘(36) the portion of the new motor vehicle cred10 it to which section 30E(c) applies.’’. 

11 (c) CONFORMING AMENDMENTS.— 

12 (1)(A) Section 24(b)(3)(B) of such Code is 

13 amended by striking ‘‘and 30D’’ and inserting 

14 ‘‘30D, and 30E’’. 

15 (B) Section 25(e)(1)(C)(ii) of such Code is 

16 amended by inserting ‘‘30E,’’ after ‘‘30D,’’. 

17 (C) Section 25B(g)(2) of such Code is amended 

18 by striking ‘‘and 30D’’ and inserting ‘‘, 30D, and 

19 30E’’. 

20 (D) Section 26(a)(1) of such Code is amended 

21 by striking ‘‘and 30D’’ and inserting ‘‘30D, and 

22 30E’’. 

23 (E) Section 904(i) of such Code is amended by 

24 striking ‘‘and 30D’’ and inserting ‘‘30D, and 30E’’. 


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1 (F) Section 1400C(d)(2) of such Code is 

2 amended by striking ‘‘and 30D’’ and inserting 

3 ‘‘30D, and 30E’’. 

4 (2) Section 1016(a) of such Code is amended 

5 by striking ‘‘and’’ at the end of paragraph (36), by 

6 striking the period at the end of paragraph (37) and 

7 inserting ‘‘, and’’, and by adding at the end the fol8 lowing new paragraph: 

9 ‘‘(38) to the extent provided in section 

10 30E(f)(1).’’. 

11 (3) Section 6501(m) of such Code is amended 

12 by inserting ‘‘30E(f)(6),’’ after ‘‘30D(e)(4),’’. 

13 (4) The table of sections for subpart B of part 

14 IV of subchapter A of chapter 1 of such Code is 

15 amended by adding at the end the following new 

16 item: 

‘‘Sec. 30E. New motor vehicles.’’. 

17 (d) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to vehicles acquired after Decem19 ber 31, 2008, in taxable years ending after such date. 

20 (e) APPLICATION OF EGTRRA SUNSET.—The 

21 amendment made by subsection (c)(1)(A) shall be subject 

22 to title IX of the Economic Growth and Tax Relief Rec23 onciliation Act of 2001 in the same manner as the provi24 sion of such Act to which such amendment relates. 

Æ 


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