II 

111TH CONGRESS 

1ST SESSION S. 1620 

To amend the Internal Revenue Code of 1986 to provide tax incentives 

and fees for increasing motor vehicle fuel economy, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 6, 2009 

Mr. BINGAMAN (for himself, Ms. SNOWE, Mr. KERRY, and Mr. LUGAR) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

tax incentives and fees for increasing motor vehicle fuel 

economy, and for other purposes. 

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; AMENDMENT OF 1986 CODE. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Efficient Vehicle Leadership Act of 2009’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 

9 to, or repeal of, a section or other provision, the reference 


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1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

3 SEC. 2. TAX CREDIT FOR FUEL-EFFICIENT MOTOR VEHI4 CLES. 

5 (a) IN GENERAL.—Subpart B of part IV of sub6 chapter A of chapter 1 (relating to other credits) is 

7 amended by inserting after section 30D the following new 

8 section: 

9 ‘‘SEC. 30E. FUEL PERFORMANCE REBATE. 

10 ‘‘(a) ALLOWANCE OF CREDIT.— 

11 ‘‘(1) IN GENERAL.—There shall be allowed as a 

12 credit against the tax imposed by this chapter for 

13 the taxable year an amount equal to the amount de14 termined under paragraph (2) with respect to any 

15 new qualified fuel-efficient motor vehicle placed in 

16 service by the taxpayer during the taxable year. 

17 ‘‘(2) CREDIT AMOUNT.—With respect to each 

18 new qualified fuel-efficient motor vehicle, the amount 

19 determined under this paragraph shall be equal to 

20 the product of— 

21 ‘‘(A) the absolute value of the difference 

22 between the fuel-economy rating and the ref23 erence fuel-economy rating for such motor vehi24 cle for the model year, and 

25 ‘‘(B) 100, and 


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1 ‘‘(C) the applicable amount. 

2 ‘‘(3) APPLICABLE AMOUNT.—For purposes of 

3 paragraph (2)(C), the applicable amount is equal 

4 to— 

5 ‘‘(A) in the case of model year 2011— 

6 ‘‘(i) $1,000, or 

7 ‘‘(ii) $2,000, if the fuel-economy rat8 ing for such motor vehicle is at least 50 

9 percent more efficient than the reference 

10 fuel-economy rating for such motor vehicle 

11 as determined under paragraph (2)(A), 

12 and 

13 ‘‘(B) in the case of any succeeding model 

14 year— 

15 ‘‘(i) $1,500, or 

16 ‘‘(ii) $2,500, if the fuel-economy rat17 ing for such motor vehicle is at least 50 

18 percent more efficient than the reference 

19 fuel-economy rating for such motor vehicle 

20 as determined under paragraph (2)(A), or 

21 ‘‘(iii) $3,500, if the fuel-economy rat22 ing for such motor vehicle is at least 75 

23 percent more efficient than the reference 

24 fuel-economy rating for such motor vehicle 

25 as determined under paragraph (2)(A). 


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1 ‘‘(b) NEW QUALIFIED FUEL-EFFICIENT MOTOR VE2 HICLE.—For purposes of this section, the term ‘new quali3 fied fuel-efficient motor vehicle’ means a passenger auto4 mobile or light truck— 

5 ‘‘(1) which is treated as a motor vehicle for 

6 purposes of title II of the Clean Air Act, 

7 ‘‘(2) which achieves a fuel-economy rating that 

8 is more efficient than the reference fuel-economy 

9 rating for such motor vehicle for the model year, 

10 ‘‘(3) for which standards are prescribed pursu11 ant to section 32902 of title 49, United States Code, 

12 ‘‘(4) the original use of which commences with 

13 the taxpayer, 

14 ‘‘(5) which is acquired for use or lease by the 

15 taxpayer and not for resale, 

16 ‘‘(6) the purchase price of which, less the 

17 amount allowable under subsection (a) with respect 

18 to such vehicle, does not exceed $50,000, and 

19 ‘‘(7) which is made by a manufacturer begin20 ning with model year 2011. 

21 ‘‘(c) APPLICATION WITH OTHER CREDITS.— 

22 ‘‘(1) BUSINESS CREDIT TREATED AS PART OF

23 GENERAL BUSINESS CREDIT.—So much of the credit 

24 which would be allowed under subsection (a) for any 

25 taxable year (determined without regard to this subVerDate Nov 24 2008 22:52 Aug 07, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1620.IS S1620

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1 section) that is attributable to property of a char2 acter subject to an allowance for depreciation shall 

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

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

5 ‘‘(2) REFUNDABLE PERSONAL CREDIT.— 

6 ‘‘(A) IN GENERAL.—For purposes of this 

7 title, the credit allowed under subsection (a) for 

8 any taxable year (determined after application 

9 of paragraph (1)) shall be treated as a credit 

10 allowable under subpart C for such taxable year 

11 (and not allowed under subsection (a)). 

12 ‘‘(B) REFUNDABLE CREDIT MAY BE

13 TRANSFERRED.— 

14 ‘‘(i) IN GENERAL.—A taxpayer may, 

15 in connection with the purchase of a new 

16 qualified fuel-efficient motor vehicle, trans17 fer any refundable credit described in sub18 paragraph (A) to any person who is in the 

19 trade or business of selling new qualified 

20 fuel-efficient motor vehicles and who sold 

21 such vehicle to the taxpayer, but only if 

22 such person clearly discloses to such tax23 payer, through the use of a window sticker 

24 attached to the new qualified fuel-efficient 

25 vehicle— 


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1 ‘‘(I) the amount of the refund2 able credit described in subparagraph 

3 (A) with respect to such vehicle, and 

4 ‘‘(II) a notification that the tax5 payer will not be eligible for any cred6 it under section 30, 30B, or 30D with 

7 respect to such vehicle unless the tax8 payer elects not to have this section 

9 apply with respect to such vehicle. 

10 ‘‘(ii) CERTIFICATION.—A transferee 

11 of a refundable credit described in sub12 paragraph (A) may not claim such credit 

13 unless such claim is accompanied by a cer14 tification to the Secretary that the trans15 feree reduced the price the taxpayer paid 

16 for the new qualified fuel-efficient motor 

17 vehicle by the entire amount of such re18 fundable credit. 

19 ‘‘(iii) CONSENT REQUIRED FOR REV20 OCATION.—Any transfer under clause (i) 

21 may be revoked only with the consent of 

22 the Secretary. 

23 ‘‘(iv) REGULATIONS.—The Secretary 

24 may prescribe such regulations as nec25 essary to ensure that any refundable credit 


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1 described in clause (i) is claimed once and 

2 not retransferred by a transferee. 

3 ‘‘(d) OTHER DEFINITIONS.—For purposes of this 

4 section— 

5 ‘‘(1) FUEL-ECONOMY RATING.—The term ‘fuel6 economy rating’ means, with respect to any motor 

7 vehicle, the combined fuel-economy rating for such 

8 motor vehicle, expressed in gallons per mile, deter9 mined in accordance with section 32904 of title 49, 

10 United States Code. 

11 ‘‘(2) MODEL YEAR.—The term ‘model year’ has 

12 the meaning given such term under section 32901(a) 

13 of such title 49. 

14 ‘‘(3) MOTOR VEHICLE.—The term ‘motor vehi15 cle’ means any vehicle which is manufactured pri16 marily for use on public streets, roads, and highways 

17 (not including a vehicle operated exclusively on a rail 

18 or rails) and which has at least 4 wheels. 

19 ‘‘(4) REFERENCE FUEL-ECONOMY RATING.— 

20 The term ‘reference fuel-economy rating’ means, 

21 with respect to any motor vehicle, the fuel economy 

22 standard for such motor vehicle, expressed in gallons 

23 per mile, calculated by applying the relevant vehicle 

24 attributes to the mathematical function published 


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1 pursuant to section 32902(b)(3)(A) of title 49, 

2 United States Code. 

3 ‘‘(5) OTHER TERMS.—The terms ‘automobile’, 

4 ‘passenger automobile’, ‘light truck’, and ‘manufac5 turer’ have the meanings given such terms in regula6 tions prescribed by the Administrator of the Envi7 ronmental Protection Agency for purposes of the ad8 ministration of title II of the Clean Air Act (42 

9 U.S.C. 7521 et seq.). 

10 ‘‘(e) SPECIAL RULES.— 

11 ‘‘(1) BASIS REDUCTION.—For purposes of this 

12 subtitle, the basis of any property for which a credit 

13 is allowable under subsection (a) shall be reduced by 

14 the amount of such credit so allowed (determined 

15 without regard to subsection (c)). 

16 ‘‘(2) NO DOUBLE BENEFIT.—No other credit 

17 shall be allowable under this chapter for a new 

18 qualified fuel-efficient motor vehicle with respect to 

19 which a credit is allowed under this section. 

20 ‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTI21 TY.—In the case of a vehicle whose use is described 

22 in paragraph (3) or (4) of section 50(b) and which 

23 is not subject to a lease, the person who sold such 

24 vehicle to the person or entity using such vehicle 

25 shall be treated as the taxpayer that placed such veVerDate Nov 24 2008 22:52 Aug 07, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1620.IS S1620

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1 hicle in service, but only if such person clearly dis2 closes to such person or entity in a document the 

3 amount of any credit allowable under subsection (a) 

4 with respect to such vehicle (determined without re5 gard to subsection (c)). For purposes of subsection 

6 (c), property to which this paragraph applies shall 

7 be treated as of a character subject to an allowance 

8 for depreciation. 

9 ‘‘(4) PROPERTY USED OUTSIDE UNITED

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

11 allowable under subsection (a) with respect to any 

12 property referred to in section 50(b)(1) or with re13 spect to the portion of the cost of any property 

14 taken into account under section 179. 

15 ‘‘(5) RECAPTURE.—The Secretary shall, by reg16 ulations, provide for recapturing the benefit of any 

17 credit allowable under subsection (a) with respect to 

18 any property which ceases to be property eligible for 

19 such credit (including recapture in the case of a 

20 lease period of less than the economic life of a vehi21 cle). 

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

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

24 vehicle if the taxpayer elects to not have this section 

25 apply to such vehicle. 


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1 ‘‘(7) INTERACTION WITH AIR QUALITY AND

2 MOTOR VEHICLE SAFETY STANDARDS.—A motor ve3 hicle shall not be considered eligible for a credit 

4 under this section unless such vehicle is in compli5 ance with— 

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

7 Air Act for the applicable make and model year 

8 of the vehicle (or applicable air quality provi9 sions of State law in the case of a State which 

10 has adopted such provisions under a waiver 

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

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

13 sections 30101 through 30169 of title 49, 

14 United States Code. 

15 ‘‘(8) INFLATION ADJUSTMENT.—In the case of 

16 any model year beginning in a calendar year after 

17 2010, each dollar amount in subsection (a)(3)(B) 

18 shall be increased by an amount equal to— 

19 ‘‘(A) such dollar amount, multiplied by 

20 ‘‘(B) the cost-of-living adjustment deter21 mined under section 1(f)(3) for the calendar 

22 year in which the model year begins, deter23 mined by substituting ‘2009’ for ‘1992’ in sub24 paragraph (B) thereof. 


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1 Any increase determined under the preceding sen2 tence shall be rounded to the nearest multiple of 

3 $100. 

4 ‘‘(f) REGULATIONS.— 

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (2), the Secretary shall promulgate such regu7 lations as necessary to carry out the provisions of 

8 this section. 

9 ‘‘(2) COORDINATION IN PRESCRIPTION OF CER10 TAIN REGULATIONS.—The Secretary of the Treas11 ury, in coordination with the Secretary of Transpor12 tation and the Administrator of the Environmental 

13 Protection Agency, shall prescribe such regulations 

14 as necessary to determine whether a motor vehicle 

15 meets the requirements to be eligible for a credit 

16 under this section.’’. 

17 (b) CREDIT ALLOWED AGAINST ALTERNATIVE MIN18 IMUM TAX.— 

19 (1) BUSINESS CREDIT.—Section 38(c)(4)(B) is 

20 amended by redesignating clauses (i) through (viii) 

21 as clauses (ii) through (ix), respectively, and by in22 serting before clause (ii) (as so redesignated) the fol23 lowing new clause: 

24 ‘‘(i) the credit determined under sec25 tion 30E,’’. 


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1 (2) PERSONAL CREDIT.— 

2 (A) Section 24(b)(3)(B) is amended by 

3 striking ‘‘and 30D’’ and inserting ‘‘30D, and 

4 30E’’. 

5 (B) Section 25(e)(1)(C)(ii) is amended by 

6 inserting ‘‘30E,’’ after ‘‘30D,’’. 

7 (C) Section 25B(g)(2) is amended by strik8 ing ‘‘and 30D’’ and inserting ‘‘30D, and 30E’’. 

9 (D) Section 26(a)(1) is amended by strik10 ing ‘‘ and 30D’’ and inserting ‘‘30D, and 30E’’. 

11 (E) Section 904(i) is amended by striking 

12 ‘‘and 30D’’ and inserting ‘‘30D, and 30E’’. 

13 (c) DISPLAY OF CREDIT.—Section 32908(b)(1) of 

14 title 49, United States Code, is amended— 

15 (1) by redesignating subparagraphs (E) and 

16 (F) as subparagraphs (F) and (G), nad 

17 (2) by inserting after subparagraph (D) the fol18 lowing new subparagraph: 

19 ‘‘(E) the amount of the fuel-efficient motor 

20 vehicle credit allowable with respect to the sale 

21 of the automobile under section 30E of the In22 ternal Revenue Code of 1986 (26 U.S.C. 

23 30E).’’. 

24 (d) CONFORMING AMENDMENTS.— 


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1 (1) Section 38(a) is amended by striking ‘‘plus’’ 

2 at the end of paragraph (34), by striking the period 

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

4 and by adding at the end the following new para5 graph: 

6 ‘‘(36) the portion of the fuel performance re7 bate to which section 30E(c)(1) applies.’’. 

8 (2) Section 1016(a) is amended by striking 

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

10 period at the end of paragraph (37) and inserting ‘‘, 

11 and’’, and by adding at the end the following new 

12 paragraph: 

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

14 30E(e)(1).’’. 

15 (3) Section 6501(m) is amended by inserting 

16 ‘‘30E(e)(6),’’ after ‘‘30D(e)(4),’’. 

17 (4) The table of section for subpart C of part 

18 IV of subchapter A of chapter 1 is amended by in19 serting after the item relating to section 30D the 

20 following new item: 

‘‘Sec. 30E. Fuel performance rebate.’’. 

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

22 this section shall apply to property placed in service after 

23 the date of the enactment of this Act. 


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1 SEC. 3. FUEL PERFORMANCE FEE. 

2 (a) IN GENERAL.—Section 4064 is amended to read 

3 as follows: 

4 ‘‘SEC. 4064. FUEL PERFORMANCE FEE. 

5 ‘‘(a) IMPOSITION OF TAX.— 

6 ‘‘(1) IN GENERAL.—There is hereby imposed on 

7 the sale by the manufacturer of each fuel guzzler 

8 motor vehicle a tax equal to the product of— 

9 ‘‘(A) the absolute value of the difference 

10 between the fuel-economy rating and the ref11 erence fuel-economy rating for such motor vehi12 cle for the model year, and 

13 ‘‘(B) 100, and 

14 ‘‘(C) the applicable amount. 

15 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 

16 paragraph (1)(C), the applicable amount is equal 

17 to— 

18 ‘‘(A) $1,500, or 

19 ‘‘(B) $2,500, if the fuel-economy rating for 

20 such motor vehicle is more than 50 percent less 

21 efficient than the reference fuel-economy rating 

22 for such motor vehicle as determined under 

23 paragraph (1)(A), or 

24 ‘‘(C) $3,500, if the fuel-economy rating for 

25 such motor vehicle is more than 75 percent less 

26 efficient than the reference fuel-economy rating 


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1 for such motor vehicle as determined under 

2 paragraph (1)(A). 

3 ‘‘(b) FUEL GUZZLER MOTOR VEHICLE.—For pur4 poses of this section— 

5 ‘‘(1) IN GENERAL.—The term ‘fuel guzzler 

6 motor vehicle’ means a passenger automobile or light 

7 truck— 

8 ‘‘(A) which is treated as a motor vehicle 

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

10 ‘‘(B) which achieves a fuel-economy rating 

11 that is less efficient than the reference fuel12 economy rating for such motor vehicle for the 

13 model year, 

14 ‘‘(C) which has a gross vehicle weight rat15 ing of not more than 8,500 pounds, and 

16 ‘‘(D) which is made by a manufacturer be17 ginning with model year 2013. 

18 ‘‘(2) EXCEPTION FOR EMERGENCY VEHICLES.— 

19 The term ‘fuel guzzler motor vehicle’ does not in20 clude any vehicle sold for use and used— 

21 ‘‘(A) as an ambulance or combination am22 bulance-hearse, 

23 ‘‘(B) by the United States or by a State or 

24 local government for police or other law en25 forcement purposes, or 


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1 ‘‘(C) for other emergency uses prescribed 

2 by the Secretary by regulations. 

3 ‘‘(c) OTHER DEFINITIONS.—For purposes of this 

4 section— 

5 ‘‘(1) FUEL-ECONOMY RATING.—The term ‘fuel6 economy rating’ means, with respect to any motor 

7 vehicle, the combined fuel-economy rating for such 

8 motor vehicle, expressed in gallons per mile, deter9 mined in accordance with section 32904 of title 49, 

10 United States Code. 

11 ‘‘(2) MODEL YEAR.—The term ‘model year’ has 

12 the meaning given such term under section 32901(a) 

13 of such title 49. 

14 ‘‘(3) MOTOR VEHICLE.—The term ‘motor vehi15 cle’ means any vehicle which is manufactured pri16 marily for use on public streets, roads, and highways 

17 (not including a vehicle operated exclusively on a rail 

18 or rails) and which has at least 4 wheels. 

19 ‘‘(4) REFERENCE FUEL-ECONOMY RATING.— 

20 The term ‘reference fuel-economy rating’ means, 

21 with respect to any motor vehicle, the fuel economy 

22 standard for such motor vehicle, expressed in gallons 

23 per mile, calculated by applying the relevant vehicle 

24 attributes to the mathematical function published 


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1 pursuant to section 32902(b)(3)(A) of title 49, 

2 United States Code. 

3 ‘‘(5) OTHER TERMS.—The terms ‘automobile’, 

4 ‘passenger automobile’, ‘light truck’, and ‘manufac5 turer’ have the meanings given such terms in regula6 tions prescribed by the Administrator of the Envi7 ronmental Protection Agency for purposes of the ad8 ministration of title II of the Clean Air Act (42 

9 U.S.C. 7521 et seq.). 

10 ‘‘(d) INFLATION ADJUSTMENT.—In the case of any 

11 model year beginning in a calendar year after 2010, each 

12 dollar amount in subsection (a)(2) shall be increased by 

13 an amount equal to— 

14 ‘‘(1) such dollar amount, multiplied by 

15 ‘‘(2) the cost-of-living adjustment determined 

16 under section 1(f)(3) for the calendar year in which 

17 the model year begins, determined by substituting 

18 ‘2009’ for ‘1992’ in subparagraph (B) thereof. 

19 Any increase determined under the preceding sentence 

20 shall be rounded to the nearest multiple of $100.’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) The heading for part I of subchapter A of 

23 chapter 32 is amended by striking ‘‘GAS’’ and in24 serting ‘‘FUEL’’. 


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1 (2) The table of parts for subchapter A of chap2 ter 32 is amended by striking ‘‘Gas’’ in the item re3 lating to part I and inserting ‘‘Fuel’’. 

4 (3) The table of sections for part I of sub5 chapter A of chapter 32 is amended by striking 

6 ‘‘Gas’’ in the item relating to section 4064 and in7 serting ‘‘Fuel’’. 

8 (4) The heading for subsection (d) of section 

9 1016 is amended by striking ‘‘GAS GUZZLER TAX’’ 

10 and inserting ‘‘FUEL PERFORMANCE FEE’’. 

11 (5) The heading for subsection (e) of section 

12 4217 is amended by striking ‘‘GAS GUZZLER TAX’’ 

13 and inserting ‘‘FUEL PERFORMANCE FEE’’. 

14 (6) The heading for subparagraph (B) of sec15 tion 4217(e)(3) is amended by striking ‘‘GAS GUZ16 ZLER TAX’’ and inserting ‘‘FUEL PERFORMANCE

17 FEE’’. 

18 (7) Section 4217(e) is amended by striking 

19 ‘‘gas guzzler tax’’ each place it appears and insert20 ing ‘‘fuel performance fee’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to sales of vehicles beginning with 

23 model year 2013. 

Æ 


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