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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2925 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2925

   To amend the Internal Revenue Code of 1986 to allow individuals a 
   credit against income tax for the sale of older, polluting motor 
         vehicles to certain purchasers who scrap the vehicles.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             August 6, 1993

   Mr. Cox 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 allow individuals a 
   credit against income tax for the sale of older, polluting motor 
         vehicles to certain purchasers who scrap the vehicles.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Junk Your Clunker Tax Credit Act of 
1993''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The use of motor vehicles generates more air pollution 
        than any other single human activity. Automobiles are 
        responsible for the vast majority of poisonous carbon monoxide 
        emissions, in addition to those emissions that lead to the 
        formation of smog during the summer months.
            (2) Since passage of the Clean Air Act in 1970, carbon 
        monoxide and hydrocarbon emissions have decreased 96 percent, 
        and ozone-causing nitrous oxides have fallen 76 percent. 
        Further automotive emissions reductions can be achieved most 
        effectively and efficiently by focusing our smog control 
        efforts on those cars which produce a disproportionate amount 
        of pollution.
            (3) There is a steady and well-documented correlation 
        between the age of a car and the amount of pollution it emits. 
        The Environmental Protection Agency has calculated that cars 
        built before the 1980 model year are responsible for 86 percent 
        of total automotive emissions.
            (4) Providing an economic incentive, in the form of a tax 
        credit, for owners of vehicles built before 1980 to retire 
        these cars will significantly reduce overall car emissions and 
        improve air quality. More importantly, it will do so far more 
        efficiently than costly and inflexible mandates.

SEC. 3. CREDIT FOR OLDER MOTOR VEHICLES SOLD TO PURCHASERS WHO SCRAP 
              THE VEHICLES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 22 the 
following new section:

``SEC. 23. SALES OF HIGHLY-POLLUTING MOTOR VEHICLES TO CERTAIN 
              PURCHASERS WHO SCRAP THE VEHICLES.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to $700 for each automobile--
            ``(1) which is sold by the taxpayer during the taxable year 
        to an approved purchaser who agrees in writing to scrap it,
            ``(2) which has been held by the taxpayer for at least 2 
        years, and
            ``(3) the model year of which is before 1980.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Automobile.--The term `automobile' has the meaning 
        given such term by section 4064(b)(1).
            ``(2) Model year.--The term `model year' has the meaning 
        given such term by section 4064(b)(4).
            ``(3) Approved purchaser.--The term `approved purchaser' 
        means any person engaged in the trade or business of scrapping 
        automobiles who meets such requirements as the Secretary may by 
        regulations prescribe for purposes of this section.''
    (b) Clerical Amendment.--The table of sections for such subpart A 
is amended by inserting after the item relating to section 22 the 
following new item:

                              ``Sec. 23. Sales of older highly-
                                        polluting motor vehicles to 
                                        certain purchasers who scrap 
                                        the vehicles.''
    (c) Effective Date.--The amendments made by this section shall 
apply to sales in calendar years beginning after the date of the 
enactment of this Act.

                                 <all>
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