II 

117TH CONGRESS 

1ST SESSION S. 395 

To amend the Internal Revenue Code of 1986 to extend certain tax credits 

related to electric cars, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 23, 2021 

Mr. MERKLEY (for himself, Mr. BOOKER, Mr. SANDERS, Ms. ROSEN, Mr. 

SCHATZ, and Mr. LEAHY) 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 extend 

certain tax credits related to electric cars, 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. 

4 This Act may be cited as the ‘‘Electric Credit Access 

5 Ready at Sale Act of 2021’’ or the ‘‘Electric CARS Act 

6 of 2021’’. 


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1 SEC. 2. EXTENSION AND MODIFICATION OF NEW QUALI2 FIED PLUG-IN ELECTRIC DRIVE MOTOR VEHI3 CLES CREDIT. 

4 (a) EXTENSION.— 

5 (1) IN GENERAL.—Subsection (e) of section 

6 30D of the Internal Revenue Code of 1986 is 

7 amended to read as follows: 

8 ‘‘(e) TERMINATION.—This section shall not apply to 

9 any new qualified plug-in electric drive motor vehicle 

10 placed in service after December 31, 2031.’’. 

11 (2) 2- AND 3-WHEELED PLUG-IN ELECTRIC VE12 HICLES.—Subparagraph (E) of section 30D(g)(3) of 

13 such Code is amended by striking ‘‘or’’ at the end 

14 of clause (i), by redesignating clause (ii) as clause 

15 (iii), and by inserting after clause (i) the following 

16 new clause: 

17 ‘‘(ii) after December 31, 2020, and 

18 before January 1, 2032, or’’. 

19 (b) CREDIT MAY BE ASSIGNED TO FINANCING ENTI20 TY.—Section 30D(f) of the Internal Revenue Code of 

21 1986 is amended by adding at the end the following new 

22 paragraph: 

23 ‘‘(8) CREDIT MAY BE ASSIGNED TO FINANCING

24 ENTITY.— 

25 ‘‘(A) IN GENERAL.—The taxpayer to whom 

26 the credit which would (but for this paragraph) 


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1 be allowed under subsection (a) for any taxable 

2 year with respect to a vehicle may assign such 

3 credit to the person who financed the purchase 

4 (or lease of at least 2 years) of such vehicle. 

5 Any person to whom such credit is assigned 

6 under the preceding sentence shall be treated 

7 for purposes of this title as the taxpayer who 

8 placed such vehicle in service. 

9 ‘‘(B) DISCLOSURE REQUIREMENT.—Sub10 paragraph (A) shall not apply with respect to 

11 any vehicle unless the person to whom the cred12 it is assigned clearly discloses in writing to the 

13 taxpayer the amount of the credit allowable 

14 under subsection (a) with respect to such vehi15 cle (determined without regard to subsection 

16 (c)).’’. 

17 (c) CARRYFORWARD OF UNUSED CREDIT.—Section 

18 30D of the Internal Revenue Code of 1986 is amended 

19 by redesignating subsection (g) (as amended by subsection 

20 (a)(2)) as subsection (h), and by inserting after subsection 

21 (f) the following new subsection: 

22 ‘‘(g) CARRYFORWARD OF UNUSED CREDIT.— 

23 ‘‘(1) IN GENERAL.—If the credit allowable 

24 under subsection (a) (after the application of sub25 section (e)) exceeds the limitation imposed by section 


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1 26(a) for such taxable year reduced by the sum of 

2 the credits allowable under this subpart (other than 

3 subsection (a) of this section), such excess shall be 

4 carried to the succeeding taxable year and treated as 

5 a credit allowable under subsection (a) for such suc6 ceeding taxable year. 

7 ‘‘(2) LIMITATION.—No amount of credit may 

8 be carried forward under this subsection to any tax9 able year following the 5th taxable year after the 

10 taxable year in which the credit arose. For purposes 

11 of the preceding sentence, credits shall be treated as 

12 used on a first-in, first-out basis.’’. 

13 (d) EFFECTIVE DATES.— 

14 (1) EXTENSION.—The amendments made by 

15 subsection (a) shall apply to vehicles acquired after 

16 December 31, 2020. 

17 (2) ASSIGNMENT.—The amendments made by 

18 subsection (b) shall apply to vehicles acquired more 

19 than 60 days after the date of the enactment of this 

20 Act. 

21 (3) CARRYFORWARD.—The amendments made 

22 by subsection (c) shall apply to vehicles sold after 

23 the date of the enactment of this Act. 


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1 SEC. 3. EXTENSION OF THE ALTERNATIVE FUEL VEHICLE 

2 REFUELING PROPERTY CREDIT. 

3 (a) IN GENERAL.—Section 30C(g) of the Internal 

4 Revenue Code of 1986 is amended by striking ‘‘2021’’ and 

5 inserting ‘‘2031’’. 

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

7 this section shall apply to property placed in service after 

8 December 31, 2021. 

9 SEC. 4. EXTENSION OF THE ALTERNATIVE MOTOR VEHICLE 

10 CREDIT. 

11 (a) IN GENERAL.—Paragraph (1) of section 30B(k) 

12 of the Internal Revenue Code of 1986 is amended by strik13 ing ‘‘2021’’ and inserting ‘‘2031’’. 

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

15 this section shall apply to property placed in service after 

16 December 31, 2021. 

Æ 


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