II 

117TH CONGRESS 

1ST SESSION S. 2537 

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

previously-owned qualified plug-in electric drive motor vehicles. 

IN THE SENATE OF THE UNITED STATES 

JULY 29, 2021 

Mrs. FEINSTEIN (for herself and Mr. PADILLA) 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 

a credit for previously-owned qualified plug-in electric 

drive 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 ‘‘Affordable EVs for 

5 Working Families Act’’. 

6 SEC. 2. CREDIT FOR PREVIOUSLY-OWNED QUALIFIED 

7 PLUG-IN ELECTRIC DRIVE 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 36B the fol2 lowing new section: 

3 ‘‘SEC. 36C. PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELEC4 TRIC DRIVE MOTOR VEHICLES. 

5 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a 

6 qualified buyer who during a taxable year places in service 

7 a previously-owned qualified plug-in electric drive motor 

8 vehicle, there shall be allowed as a credit against the tax 

9 imposed by this subtitle for the taxable year an amount 

10 equal to the sum of— 

11 ‘‘(1) $1,250, plus 

12 ‘‘(2) in the case of a vehicle which draws pro13 pulsion energy from a battery which exceeds 4 kilo14 watt hours of capacity (determined at the time of 

15 sale), the lesser of— 

16 ‘‘(A) $1,250, and 

17 ‘‘(B) the product of $208.50 and such ex18 cess kilowatt hours. 

19 ‘‘(b) LIMITATIONS.— 

20 ‘‘(1) SALE PRICE.—The credit allowed under 

21 subsection (a) with respect to sale of a vehicle shall 

22 not exceed 30 percent of the sale price. 

23 ‘‘(2) ADJUSTED GROSS INCOME.—The amount 

24 which would (but for this paragraph) be allowed as 

25 a credit under subsection (a) shall be reduced (but 


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1 not below zero) by $200 for each $1,000 (or fraction 

2 thereof) by which the taxpayer’s adjusted gross in3 come exceeds $75,000 (twice such amount in the 

4 case of a joint return). 

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

6 ‘‘(1) PREVIOUSLY-OWNED QUALIFIED PLUG-IN

7 ELECTRIC DRIVE MOTOR VEHICLE.—The term ‘pre8 viously-owned qualified plug-in electric drive motor 

9 vehicle’ means, with respect to a taxpayer, a motor 

10 vehicle— 

11 ‘‘(A) the model year of which is at least 2 

12 earlier than the calendar year in which the tax13 payer acquires such vehicle, 

14 ‘‘(B) the original use of which commences 

15 with a person other than the taxpayer, 

16 ‘‘(C) which is acquired by the taxpayer in 

17 a qualified sale, 

18 ‘‘(D) registered by the taxpayer for oper19 ation in a State or possession of the United 

20 States, 

21 ‘‘(E) which meets the requirements of sub22 paragraphs (C), (D), (E), (F) of section 

23 30D(d)(1), and 

24 ‘‘(F) which is not of a character subject to 

25 an allowance for depreciation. 


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1 ‘‘(2) QUALIFIED SALE.—The term ‘qualified 

2 sale’ means a sale of a motor vehicle— 

3 ‘‘(A) by a seller who holds such vehicle in 

4 inventory (within the meaning of section 471) 

5 for sale or lease, 

6 ‘‘(B) for a sale price of less than $25,000, 

7 and 

8 ‘‘(C) which is the first transfer since the 

9 date of the enactment of this section to a per10 son other than the person with whom the origi11 nal use of such vehicle commenced. 

12 ‘‘(3) QUALIFIED BUYER.—The term ‘qualified 

13 buyer’ means, with respect to a sale of a motor vehi14 cle, a taxpayer— 

15 ‘‘(A) who is an individual, 

16 ‘‘(B) who purchases such vehicle for use 

17 and not for resale, 

18 ‘‘(C) with respect to whom no deduction is 

19 allowable with respect to another taxpayer 

20 under section 151, 

21 ‘‘(D) who has not been allowed a credit 

22 under this section for any sale during the 3- 

23 year period ending on the date of the sale of 

24 such vehicle, and 


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1 ‘‘(E) who possesses a certificate issued by 

2 the seller that certifies— 

3 ‘‘(i) that the vehicle is a previously4 owned qualified plug-in electric drive motor 

5 vehicle, 

6 ‘‘(ii) the vehicle identification number 

7 of such vehicle, 

8 ‘‘(iii) the capacity of the battery at 

9 time of sale, and 

10 ‘‘(iv) such other information as the 

11 Secretary may require. 

12 ‘‘(4) MOTOR VEHICLE; CAPACITY.—The terms 

13 ‘motor vehicle’ and ‘capacity’ have the meaning 

14 given such terms in paragraphs (2) and (4) of sec15 tion 30D(d), respectively. 

16 ‘‘(d) VIN NUMBER REQUIREMENT.—No credit shall 

17 be allowed under subsection (a) with respect to any vehicle 

18 unless the taxpayer includes the vehicle identification 

19 number of such vehicle on the return of tax for the taxable 

20 year. 

21 ‘‘(e) APPLICATION OF CERTAIN RULES.—For pur22 poses of this section, rules similar to the rules of para23 graphs (1), (2), (4), (5), (6) and (7) of section 30D(f) 

24 shall apply for purposes of this section. 


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1 ‘‘(f) CERTIFICATE SUBMISSION REQUIREMENT.— 

2 The Secretary may require that the issuer of the certifi3 cate described in subsection (c)(3)(E) submit such certifi4 cate to the Secretary at the time and in the manner re5 quired by the Secretary.’’. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) Section 6211(b)(4)(A) of such Code is 

8 amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 

9 (2) Section 6213(g)(2) of such Code is amend10 ed— 

11 (A) in subparagraph (P), by striking 

12 ‘‘and’’ at the end, 

13 (B) in subparagraph (Q), by striking the 

14 period at the end and inserting ‘‘, and’’, and 

15 (C) by adding at the end the following: 

16 ‘‘(R) an omission of a correct vehicle iden17 tification number required under section 36C(d) 

18 (relating to credit for previously-owned qualified 

19 plug-in electric drive motor vehicles) to be in20 cluded on a return.’’. 

21 (3) Paragraph (2) of section 1324(b) of title 

22 31, United States Code, is amended by inserting 

23 ‘‘36C,’’ after ‘‘36B,’’. 

24 (c) CLERICAL AMENDMENT.—The table of sections 

25 for subpart C of part IV of subchapter A of chapter 1 


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1 of the Internal Revenue Code of 1986 is amended by in2 serting after the item relating to section 36B the following 

3 new item: 

‘‘Sec. 36C. Previously-owned qualified plug-in electric drive motor vehicles.’’. 

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

5 this section shall apply to vehicles acquired after the date 

6 of the enactment of this Act. 

Æ 


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