II 

110TH CONGRESS 

1ST SESSION S. 319 

To amend the Internal Revenue Code of 1986 to reduce the incentive to 

purchase larger and luxury motor vehicles. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 17, 2007 

Mr. SALAZAR 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 reduce 

the incentive to purchase larger and luxury 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 ‘‘Reducing the Incen5 tives to Guzzle Gas Act’’. 


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•S 319 IS

1 SEC. 2. INCLUSION OF HEAVY VEHICLES IN LIMITATION ON 

2 DEPRECIATION OF CERTAIN LUXURY AUTO3 MOBILES. 

4 (a) IN GENERAL.—Section 280F(d)(5)(A) of the In5 ternal Revenue Code of 1986 (defining passenger auto6 mobile) is amended— 

7 (1) by striking clause (ii) and inserting the fol8 lowing new clause: 

9 ‘‘(ii)(I) which is rated at 6,000 

10 pounds unloaded gross vehicle weight or 

11 less, or 

12 ‘‘(II) which is rated at more than 

13 6,000 pounds but not more than 14,000 

14 pounds gross vehicle weight.’’, 

15 (2) by striking ‘‘clause (ii)’’ in the second sen16 tence and inserting ‘‘clause (ii)(I)’’. 

17 (b) EXCEPTION FOR VEHICLES USED IN FARMING

18 BUSINESS.—Section 280F(d)(5)(B) of such Code (relat19 ing to exception for certain vehicles) is amended by strik20 ing ‘‘and’’ at the end of clause (ii), by redesignating clause 

21 (iii) as clause (iv), and by inserting after clause (ii) the 

22 following new clause: 

23 ‘‘(iii) any vehicle used in a farming 

24 business (as defined in section 263A(e)(4), 

25 and’’. 


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•S 319 IS

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

2 this section shall apply to property placed in service after 

3 the date of the enactment of this Act. 

4 SEC. 3. UPDATED DEPRECIATION DEDUCTION LIMITS. 

5 (a) IN GENERAL.—Subparagraph (A) of section 

6 280F(a)(1) of the Internal Revenue Code of 1986 (relat7 ing to limitation on amount of depreciation for luxury 

8 automobiles) is amended to read as follows: 

9 ‘‘(A) LIMITATION.—The amount of the de10 preciation deduction for any taxable year shall 

11 not exceed for any passenger automobile— 

12 ‘‘(i) for the 1st taxable year in the re13 covery period— 

14 ‘‘(I) described in subsection 

15 (d)(5)(A)(ii)(I), $4,000, 

16 ‘‘(II) described in the second sen17 tence of subsection (d)(5)(A), $5,000, 

18 and 

19 ‘‘(III) described in subsection 

20 (d)(5)(A)(ii)(II), $6,000, 

21 ‘‘(ii) for the 2nd taxable year in the 

22 recovery period— 

23 ‘‘(I) described in subsection 

24 (d)(5)(A)(ii)(I), $6,400, 


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•S 319 IS

1 ‘‘(II) described in the second sen2 tence of subsection (d)(5)(A), $8,000, 

3 and 

4 ‘‘(III) described in subsection 

5 (d)(5)(A)(ii)(II), $9,600, 

6 ‘‘(iii) for the 3rd taxable year in the 

7 recovery period— 

8 ‘‘(I) described in subsection 

9 (d)(5)(A)(ii)(I), $3,850, 

10 ‘‘(II) described in the second sen11 tence of subsection (d)(5)(A), $4,800, 

12 and 

13 ‘‘(III) described in subsection 

14 (d)(5)(A)(ii)(II), $5,775, and 

15 ‘‘(iv) for each succeeding taxable year 

16 in the recovery period— 

17 ‘‘(I) described in subsection 

18 (d)(5)(A)(ii)(I), $2,325, 

19 ‘‘(II) described in the second sen20 tence of subsection (d)(5)(A), $2,900, 

21 and 

22 ‘‘(III) described in subsection 

23 (d)(5)(A)(ii)(II), $3,475.’’. 


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•S 319 IS

1 (b) YEARS AFTER RECOVERY PERIOD.—Section 

2 280F(a)(1)(B)(ii) of such Code is amended to read as fol3 lows: 

4 ‘‘(ii) LIMITATION.—The amount treat5 ed as an expense under clause (i) for any 

6 taxable year shall not exceed for any pas7 senger automobile— 

8 ‘‘(I) described in subsection 

9 (d)(5)(A)(ii)(I), $2,325, 

10 ‘‘(II) described in the second sen11 tence of subsection (d)(5)(A), $2,900, 

12 and 

13 ‘‘(III) described in subsection 

14 (d)(5)(A)(ii)(II), $3,475.’’. 

15 (c) INFLATION ADJUSTMENT.—Section 280F(d)(7) 

16 of such Code (relating to automobile price inflation adjust17 ment) is amended— 

18 (1) by striking ‘‘after 1988’’ in subparagraph 

19 (A) and inserting ‘‘after 2007’’, and 

20 (2) by striking subparagraph (B) and inserting 

21 the following new subparagraph: 

22 ‘‘(B) AUTOMOBILE PRICE INFLATION AD23 JUSTMENT.—For purposes of this paragraph— 


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•S 319 IS

1 ‘‘(i) IN GENERAL.—The automobile 

2 price inflation adjustment for any calendar 

3 year is the percentage (if any) by which— 

4 ‘‘(I) the average wage index for 

5 the preceding calendar year, exceeds 

6 ‘‘(II) the average wage index for 

7 2006. 

8 ‘‘(ii) AVERAGE WAGE INDEX.—The 

9 term ‘average wage index’ means the aver10 age wage index published by the Social Se11 curity Administration.’’. 

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

13 this section shall apply to property placed in service after 

14 the date of the enactment of this Act. 

15 SEC. 4. EXPENSING LIMITATION FOR FARM VEHICLES. 

16 (a) IN GENERAL.—Paragraph (6) of section 179(b) 

17 of the Internal Revenue Code of 1986 (relating to limita18 tions) is amended to read as follows: 

19 ‘‘(6) LIMITATION ON COST TAKEN INTO AC20 COUNT FOR FARM VEHICLES.—The cost of any vehi21 cle described in section 280F(d)(5)(B)(iii) for any 

22 taxable year which may be taken into account under 

23 this section shall not exceed $30,000.’’. 


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•S 319 IS

1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to property placed in service after 

3 the date of the enactment of this Act. 

Æ 


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