I 
108TH CONGRESS 
1ST SESSION H. R. 1356
To encourage the availability and use of motor vehicles that have improved 
fuel efficiency, in order to reduce the need to import oil into the United 
States. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 19, 2003
Mr. ENGEL introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committees on Financial 
Services and Energy and Commerce, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To encourage the availability and use of motor vehicles that 
have improved fuel efficiency, in order to reduce the 
need to import oil into the United States.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. FINDINGS. 
The Congress makes the following findings: 
(1) Ensuring secure access to energy is in the 
highest national security interests of the United 
States.
(2) Without secure access to oil supplies, the 
United States economy, which depends heavily on oil 
for transportation, could be severely affected. Two-
thirds of the oil used in the United States is con-
sumed by the transportation sector. Passenger vehi-
cles alone account for 40 percent of United States 
oil use. 
(3) In the year 2000, the United States im-
ported 58 percent of its oil needs, 45 percent of 
which came from Organization of Petroleum Export-
ing Countries (OPEC) nations. 
(4) Over the next 20 years, according to the 
Energy Information Administration, the United 
States’s demand for oil is projected to increase by 
33 percent. 
(5) In 1973 OPEC placed an embargo on sales 
of oil to the United States, creating severe oil short-
ages and driving up oil prices in the United States. 
OPEC’s action was a major factor in the recession 
which followed shortly thereafter. 
(6) Under the ‘‘Carter Doctrine’’, announced by 
President Carter in 1980, ‘‘An attempt by any out-
side forces to gain control of the Persian Gulf region 
will be regarded as an assault on the vital interests 
of the United States of America, and such an as-
sault will be repelled by any means necessary, in-
cluding military force.’’. 
(7) Following the Iraqi invasion of Kuwait in 
1990, the United States sent more than 500,000 
troops to the Persian Gulf to expel the Iraqi troops, 
liberate Kuwait, protect Saudi Arabia, and ensure 
access to Persian Gulf oil. 
(8) As of March 19, 2003, the United States is 
on the verge of fighting yet another war against Iraq 
to further ensure access to vital oil supplies. 
(9) Many major oil producing nations do not 
share United States values of democracy, freedom of 
expression, thought, and religion, and equality for 
women. 
(10) During the Afghanistan conflict and the 
war on terrorism, many oil producing nations did 
not openly support the United States campaign to 
end the terror, and many of the terrorists of Sep-
tember 11 came from major OPEC nations. 
(11) It is in the highest national security inter-
ests of the United States to substantially reduce our 
dependence on oil as soon as possible, to secure our 
access to oil supplies, and to reduce our dependence 
on nations which do not share our interests and val-
ues.
(12) Because most oil is consumed by the 
transportation sector, reduction of our dependence 
on oil can only come from major increases in fuel ef-
ficiency in cars, sport utility vehicles, light trucks, 
and other vehicles. 
(13) To protect United States national security 
interests after September 11, the United States Gov-
ernment has invested heavily in securing many in-
dustrial sectors, including airlines and the national 
health system. 
SEC. 2. FUEL EFFICIENCY VEHICLE CREDIT. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to foreign tax credit, etc.) is amended by 
adding at the end the following: 
‘‘SEC. 30B. FUEL EFFICIENCY VEHICLE CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—
‘‘(1) FUEL ECONOMY NOT LESS THAN 40 MILES 
PER GALLON.—At the election of the taxpayer, there 
shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year an amount equal 
to 25 percent of the cost of any qualified fuel-effi
cient vehicle placed in service by the taxpayer during 
the taxable year.
‘‘(2) FUEL ECONOMY NOT LESS THAN 50 MILES 
PER GALLON.—In the case of a qualified fuel-effi-
cient vehicle in which the fuel economy (within the 
meaning of subsection (c)(1)) is not less than 50 
miles per gallon—
‘‘(A) paragraph (1) shall be applied by 
substituting ‘35 percent’ for ‘25 percent’, and 
‘‘(B) subsection (b) shall be applied by 
substituting ‘$6,000’ for $5,000’. 
‘‘(b) LIMITATION.—The amount of the credit allowed 
by subsection (a) shall not exceed $5,000. 
‘‘(c) QUALIFIED FUEL-EFFICIENT VEHICLE.—For 
purposes of this section, the term ‘qualified fuel-efficient 
vehicle’ means a motor vehicle (as defined in section 
30(c)(2))—
‘‘(1) in which the fuel economy (determined in 
accordance with section 4064) of such vehicle is 
rated at not less than 40 miles per gallon, 
‘‘(2) which is—
‘‘(A) an automobile (as defined in section 
4064(b)), or 
‘‘(B) a truck or van with an unloaded 
gross vehicle weight rating not greater than 
7,500 pounds, and