I 

116TH CONGRESS 

1ST SESSION H. R. 1027 

To amend the Internal Revenue Code of 1986 to terminate the credit for 

new qualified plug-in electric drive motor vehicles and to provide for 

a Federal highway user fee on alternative fuel vehicles. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 6, 2019 

Mr. SMITH of Missouri (for himself and Mr. GOHMERT) 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 terminate 

the credit for new qualified plug-in electric drive motor 

vehicles and to provide for a Federal highway user fee 

on alternative fuel 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 ‘‘Fairness for Every 

5 Driver Act’’. 


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1 SEC. 2. TERMINATION AND REPEAL OF CREDIT FOR NEW 

2 QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 

3 VEHICLES. 

4 (a) TERMINATION.—Section 30D of the Internal Rev5 enue Code of 1986 is amended by adding at the end the 

6 following new subsection: 

7 ‘‘(h) TERMINATION.—Notwithstanding any of the 

8 preceding provisions of this section, this section shall not 

9 apply to vehicles placed in service after the date that is 

10 30 days after the date of the enactment of this sub11 section.’’. 

12 (b) REPEAL.— 

13 (1) IN GENERAL.—Subpart B of part IV of 

14 subchapter A of chapter 1 of the Internal Revenue 

15 Code of 1986 is amended by striking section 30D 

16 (and by striking the item relating to such section in 

17 the table of sections for such subpart). 

18 (2) CONFORMING AMENDMENTS.— 

19 (A) Section 38(b) of the Internal Revenue 

20 Code of 1986 is amended by striking paragraph 

21 (30). 

22 (B) Section 1016(a) of such Code is 

23 amended by striking paragraph (37). 

24 (C) Section 6501(m) of such Code is 

25 amended by striking ‘‘30D(e)(4),’’. 


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1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to taxable years begin3 ning after the date that is 1 year and 30 days after 

4 the date of the enactment of this Act. 

5 SEC. 3. FEDERAL HIGHWAY USER FEE ON ALTERNATIVE 

6 FUEL VEHICLES. 

7 (a) IMPOSITION OF FEE.— 

8 (1) IN GENERAL.—Subtitle D of the Internal 

9 Revenue Code of 1986 is amended by adding at the 

10 end the following new chapter: 

11 ‘‘CHAPTER 50A—ALTERNATIVE FUEL 

12 VEHICLE HIGHWAY USER FEE 

‘‘Sec. 5000D. Alternative fuel vehicle highway user fee. 

13 ‘‘SEC. 5000D. ALTERNATIVE FUEL VEHICLE HIGHWAY USER 

14 FEE. 

15 ‘‘(a) IN GENERAL.—There is imposed a user fee on 

16 any alternative fuel vehicle used in the United States dur17 ing the taxable year. 

18 ‘‘(b) RATE OF FEE.— 

19 ‘‘(1) IN GENERAL.—The fee imposed under 

20 subsection (a) with respect to any alternative fuel 

21 vehicle shall be the product of— 

22 ‘‘(A) the average gallons of fuel consump23 tion per vehicle for motor vehicles in the same 


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1 category as such alternative fuel vehicle, multi2 plied by 

3 ‘‘(B)(i) in the case of an alternative fuel 

4 vehicle in a category of vehicles which are ordi5 narily powered by gasoline, the rate of tax 

6 under section 4081(a)(2)(A)(i) in effect for the 

7 first day of the calendar year, and 

8 ‘‘(ii) in the case of an alternative fuel vehi9 cle in a category of vehicles which are ordinarily 

10 powered by diesel fuel, the rate of tax under 

11 section 4081(a)(2)(A)(iii) in effect for the first 

12 day of the calendar year. 

13 ‘‘(2) CATEGORIES OF VEHICLES.— 

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

15 subsection, the Secretary, in consultation with 

16 the Secretary of Transportation, shall— 

17 ‘‘(i) establish categories of similar 

18 motor vehicles for purposes of admin19 istering this section, and 

20 ‘‘(ii) assign all motor vehicles that are 

21 commonly sold in the United States to one 

22 of the categories established under clause 

23 (i). 

24 ‘‘(B) CRITERIA.—In establishing the cat25 egories under subparagraph (A)(i) and assignVerDate Sep 11 2014 01:59 Feb 26, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1027.IH H1027

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1 ing motor vehicles to such categories under sub2 paragraph (A)(ii), the Secretary shall con3 sider— 

4 ‘‘(i) gross vehicle weight rating, 

5 ‘‘(ii) the number of wheels of the vehi6 cle, 

7 ‘‘(iii) the common use of the vehicle, 

8 ‘‘(iv) whether comparable vehicles are 

9 ordinarily powered by gasoline or diesel 

10 fuel, and 

11 ‘‘(v) such other factors as the Sec12 retary, in consultation with the Secretary 

13 of Transportation, deems relevant. 

14 ‘‘(3) AVERAGE GALLONS OF FUEL CONSUMP15 TION.—For purposes of this subsection, the average 

16 gallons of fuel consumption for each category of 

17 motor vehicles— 

18 ‘‘(A) shall be determined by the Secretary, 

19 in consultation with the Secretary of Transpor20 tation, taking into account only the motor vehi21 cles in such category that are not alternative 

22 fuel vehicles, and 

23 ‘‘(B) shall be updated annually. 

24 ‘‘(c) DEFINITIONS.—For purposes of this section— 

25 ‘‘(1) ALTERNATIVE FUEL VEHICLE.— 


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1 ‘‘(A) IN GENERAL.—The term ‘alternative 

2 fuel vehicle’ means any plug-in electric vehicle, 

3 any fuel cell electric vehicle, or any other alter4 native fuel vehicle. 

5 ‘‘(B) PLUG-IN ELECTRIC VEHICLE.—The 

6 term ‘plug-in electric vehicle’ means a motor ve7 hicle which is propelled to a significant extent 

8 by an electric motor which draws electricity 

9 from a battery which— 

10 ‘‘(i) has a capacity of not less than 4 

11 kilowatt hours, and 

12 ‘‘(ii) is capable of being recharged 

13 from an external source of electricity. 

14 ‘‘(C) FUEL CELL ELECTRIC VEHICLE.— 

15 The term ‘fuel cell electric vehicle’ means a 

16 motor vehicle which is propelled to a significant 

17 extent by an electric motor which draws elec18 tricity from hydrogen converted to electricity by 

19 a fuel cell. 

20 ‘‘(D) OTHER ALTERNATIVE FUEL VEHI21 CLE.—The term ‘other alternative fuel vehicle’ 

22 means a motor vehicle (other than a plug-in 

23 electric vehicle or a fuel cell electric vehicle) 

24 which is propelled to a significant extent by an 

25 electric motor which draws power from any 


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1 source that is not subject to tax under section 

2 4041 or 4081 (determined without regard to 

3 any exemption for a specific use). 

4 ‘‘(2) MOTOR VEHICLE.—The term ‘motor vehi5 cle’ means any vehicle which is manufactured pri6 marily for use on public streets, roads, and highways 

7 (not including a vehicle operated exclusively on a rail 

8 or rails). 

9 ‘‘(d) LIABILITY.—The fee imposed under this section 

10 shall be paid by the person who owns the alternative fuel 

11 vehicle. 

12 ‘‘(e) ADMINISTRATION AND PROCEDURE.— 

13 ‘‘(1) IN GENERAL.—The fee imposed under this 

14 section shall be paid upon notice and demand by the 

15 Secretary, and shall be assessed and collected in the 

16 same manner as taxes. Except as otherwise pro17 vided, any reference in this title to ‘tax’ imposed by 

18 this title shall be deemed also to refer to the fee pro19 vided by this section. 

20 ‘‘(2) TIME AT WHICH FEE COLLECTED.—Any 

21 fee due under this section shall be included with a 

22 taxpayer’s return under chapter 1 for the taxable 

23 year.’’. 

24 (2) CLERICAL AMENDMENT.—The table of 

25 chapters for subtitle D of the Internal Revenue Code 


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1 of 1986 is amended by adding at the end the fol2 lowing new item: 

‘‘CHAPTER 50A—ALTERNATIVE FUEL VEHICLE HIGHWAY USER FEE’’. 

3 (b) TRANSFERS OF FEES TO HIGHWAY TRUST

4 FUND.—Section 9503(b)(1) of the Internal Revenue Code 

5 of 1986 is amended— 

6 (1) by inserting ‘‘and fees’’ after ‘‘the taxes’’; 

7 and 

8 (2) by striking ‘‘and’’ at the end of subpara9 graph (D), by striking the period at the end of sub10 paragraph (E) and inserting ‘‘, and’’, and by insert11 ing after subparagraph (E) the following new sub12 paragraph: 

13 ‘‘(F) section 5000D (relating to alternative 

14 fuel vehicle highway user fee).’’. 

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

16 this section shall apply to taxable years beginning after 

17 the date of the enactment of this section. 

Æ 


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