II 

109TH CONGRESS 

2D SESSION S. 3908 

To amend the Internal Revenue Code of 1986 to provide a credit for fuelefficient motor vehicles and to require major integrated oil companies 

to amortize intangible drilling and development costs. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 18, 2006 

Mr. WYDEN (for himself and Mr. BENNETT) 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 fuel-efficient motor vehicles and to require 

major integrated oil companies to amortize intangible 

drilling and development costs. 

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 ‘‘Oil Independence, Lim5 iting Subsidies, and Accelerating Vehicle Efficiency 

6 (OILSAVE) Act’’. 


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1 SEC. 2. TAX CREDIT FOR FUEL-EFFICIENT MOTOR VEHI2 CLES. 

3 (a) IN GENERAL.—Subpart B of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 (relating to other credits) is amended by inserting 

6 after section 30C the following new section: 

7 ‘‘SEC. 30D. FUEL-EFFICIENT MOTOR VEHICLE CREDIT. 

8 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al9 lowed a credit against the tax imposed by this chapter for 

10 the taxable year an amount equal to the applicable amount 

11 for each new qualified fuel-efficient motor vehicle placed 

12 in service by the taxpayer during the taxable year. 

13 ‘‘(b) NEW QUALIFIED FUEL-EFFICIENT MOTOR VE14 HICLE.—For purposes of this section, the term ‘new quali15 fied fuel-efficient motor vehicle’ means a motor vehicle (as 

16 defined under section 30(c)(2))— 

17 ‘‘(1) which is a passenger automobile or a light 

18 truck, 

19 ‘‘(2) which— 

20 ‘‘(A) in the case of a passenger automobile, 

21 achieves a fuel economy of not less than 34.5 

22 miles per gallon, and 

23 ‘‘(B) in the case of a light truck, achieves 

24 a fuel economy of not less than 27.5 miles per 

25 gallon, 


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1 ‘‘(3) the original use of which commences with 

2 the taxpayer, 

3 ‘‘(4) which is acquired for use or lease by the 

4 taxpayer and not for resale, and 

5 ‘‘(5) which is made by a manufacturer for 

6 model year 2007, 2008, 2009, 2010, or 2011. 

7 ‘‘(c) APPLICABLE AMOUNT.—For purposes of this 

8 section, the applicable amount shall be determined as fol9 lows: 

‘‘If the motor vehicle achieves a fuel economy of: 

In the case 

of a passenger automobile, the 

applicable 

amount is: 

In the case 

of a light 

truck, the 

applicable 

amount is: 

27.5 miles per gallon .............................................. $0 $630 

28.5 ......................................................................... 0 710 

29.5 ......................................................................... 0 780 

30.5 ......................................................................... 0 850 

31.5 ......................................................................... 0 920 

32.5 ......................................................................... 0 980 

33.5 ......................................................................... 0 1,040 

34.5 ......................................................................... 630 1.090 

35.5 ......................................................................... 700 1,140 

36.5 ......................................................................... 760 1,190 

37.5 ......................................................................... 820 1,240 

38.5 ......................................................................... 880 1,280 

39.5 ......................................................................... 940 1,320 

40.5 ......................................................................... 990 1,360 

41.5 ......................................................................... 1,040 1,400 

42.5 ......................................................................... 1,090 1,430 

43.5 ......................................................................... 1,140 1,470 

44.5 ......................................................................... 1,180 1,500 

45.5 ......................................................................... 1,220 1,530 

46.5 ......................................................................... 1,260 1,560 

47.5 ......................................................................... 1,300 1,590 

48.5 ......................................................................... 1,340 1,620 

49.5 ......................................................................... 1,370 1,640 

50.5 ......................................................................... 1,410 1,670 

51.5 ......................................................................... 1,440 1,690 

52.5 ......................................................................... 1,470 1,720 

53.5 ......................................................................... 1,500 1,740 


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‘‘If the motor vehicle achieves a fuel economy of: 

In the case 

of a passenger automobile, the 

applicable 

amount is: 

In the case 

of a light 

truck, the 

applicable 

amount is: 

54.5 ......................................................................... 1,530 1,760 

55.5 ......................................................................... 1,560 1,780 

56.5 ......................................................................... 1,590 1,800 

57.5 ......................................................................... 1,610 1,820 

58.5 ......................................................................... 1,640 1,840 

59.5 or more ........................................................... 1,660 1,860 

1 ‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.— 

2 For purposes of this section— 

3 ‘‘(1) FUEL ECONOMY.—The term ‘fuel econ4 omy’ has the meaning given such term under section 

5 32901(a)(10) of title 49, United States Code. 

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

7 the meaning given such term under section 

8 32901(a)(14) of such title. 

9 ‘‘(3) OTHER TERMS.—The terms ‘passenger 

10 automobile’, ‘light truck’, and ‘manufacturer’ have 

11 the meaning given such terms in regulations pre12 scribed by the Administrator of the Environmental 

13 Protection Agency for purposes of the administra14 tion of title II of the Clean Air Act. 

15 ‘‘(4) REDUCTION IN BASIS.—For purposes of 

16 this subtitle, the basis of any property for which a 

17 credit is allowable under subsection (a) shall be re18 duced by the amount of such credit so allowed. 


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1 ‘‘(5) NO DOUBLE BENEFIT.— 

2 ‘‘(A) COORDINATION WITH OTHER VEHI3 CLE CREDITS.—No credit shall be allowed 

4 under subsection (a) with respect to any new 

5 qualified fuel-efficient motor vehicle for any tax6 able year if a credit is allowed with respect to 

7 such motor vehicle for such taxable year under 

8 section 30 or 30B. 

9 ‘‘(B) OTHER TAX BENEFITS.—The amount 

10 of any deduction or credit (other than the credit 

11 allowable under this section and any credit de12 scribed in subparagraph (A)) allowable under 

13 this chapter with respect to any new qualified 

14 fuel-efficient motor vehicle shall be reduced by 

15 the amount of credit allowed under subsection 

16 (a) for such motor vehicle for such taxable year. 

17 ‘‘(6) PROPERTY USED OUTSIDE THE UNITED

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

19 allowable under subsection (a) with respect to any 

20 property referred to in section 50(b)(1) or with re21 spect to the portion of the cost of any property 

22 taken into account under section 179. 

23 ‘‘(7) ELECTION NOT TO TAKE CREDIT.—No 

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


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1 vehicle if the taxpayer elects not to have this section 

2 apply to such vehicle. 

3 ‘‘(8) INTERACTION WITH AIR QUALITY AND

4 MOTOR VEHICLE SAFETY STANDARDS.—Unless oth5 erwise provided in this section, a motor vehicle shall 

6 not be considered eligible for a credit under this sec7 tion unless such vehicle is in compliance with— 

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

9 Air Act for the applicable make and model year 

10 of the vehicle (or applicable air quality provi11 sions of State law in the case of a State which 

12 has adopted such provision under a waiver 

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

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

15 sections 30101 through 30169 of title 49, 

16 United States Code. 

17 ‘‘(e) CREDIT MAY BE TRANSFERRED.— 

18 ‘‘(1) IN GENERAL.—A taxpayer may, in connec19 tion with the purchase of a new qualified fuel-effi20 cient motor vehicle, transfer any credit allowable 

21 under subsection (a) to any person who is in the 

22 trade or business of selling new qualified fuel-effi23 cient motor vehicles, but only if such person clearly 

24 discloses to such taxpayer, through the use of a winVerDate Aug 31 2005 01:42 Sep 19, 2006 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3908.IS S3908

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1 dow sticker attached to the new qualified fuel-effi2 cient vehicle— 

3 ‘‘(A) the amount of any credit allowable 

4 under subsection (a) with respect to such vehi5 cle, and 

6 ‘‘(B) a notification that the taxpayer will 

7 not be eligible for any credit under section 30 

8 or 30B with respect to such vehicle unless the 

9 taxpayer elects not to have this section apply 

10 with respect to such vehicle. 

11 ‘‘(2) CONSENT REQUIRED FOR REVOCATION.— 

12 Any transfer under paragraph (1) may be revoked 

13 only with the consent of the Secretary. 

14 ‘‘(3) REGULATIONS.—The Secretary may pre15 scribe such regulations as necessary to ensure that 

16 any credit described in paragraph (1) is claimed 

17 once and not retransferred by a transferee.’’. 

18 (b) CONFORMING AMENDMENTS.— 

19 (1) Section 1016(a) of the Internal Revenue 

20 Code of 1986 is amended by striking ‘‘and’’ at the 

21 end of paragraph (36), by striking the period at the 

22 end of paragraph (37) and inserting ‘‘, and’’, and by 

23 adding at the end the following new paragraph: 

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

25 30D(d)(4).’’. 


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1 (2) Section 6501(m) of such Code is amended 

2 by inserting ‘‘30D(d)(7),’’ after ‘‘30C(e)(5),’’. 

3 (3) The table of section for subpart C of part 

4 IV of subchapter A of chapter 1 of such Code is 

5 amended by inserting after the item relating to sec6 tion 30C the following new item: 

‘‘Sec. 30D. Fuel-efficient motor vehicle credit.’’. 

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

8 this section shall apply to property placed in service after 

9 the date of the enactment of this Act. 

10 SEC. 3. AMORTIZATION OF INTANGIBLE DRILLING AND DE11 VELOPMENT COSTS FOR MAJOR INTEGRATED 

12 OIL COMPANIES. 

13 (a) IN GENERAL.—Subsection (i) of section 263 of 

14 the Internal Revenue Code of 1986 is amended— 

15 (1) by striking ‘‘INCURRED OUTSIDE THE

16 UNITED STATES’’ in the heading, 

17 (2) by inserting ‘‘or owned or operated by a 

18 major integrated oil company (as defined in section 

19 167(h)(5)(B))’’ after ‘‘United States’’, and 

20 (3) by inserting ‘‘located outside the United 

21 States’’ after ‘‘nonproductive well’’ in the last sen22 tence thereof. 


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

2 this section shall apply to costs paid or incurred after the 

3 date of the enactment of this Act. 

Æ 


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