described in clause (i) is claimed once and 
not retransferred by a transferee. 
‘‘(d) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) FUEL-ECONOMY RATING.—The term ‘fuel- 
economy rating’ means, with respect to any motor 
vehicle, the combined fuel-economy rating for such 
motor vehicle, expressed in gallons per mile, deter-
mined in accordance with section 32904 of title 49, 
United States Code. 
‘‘(2) MODEL YEAR.—The term ‘model year’ has 
the meaning given such term under section 32901(a) 
of such title 49. 
‘‘(3) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ means any vehicle which is manufactured pri-
marily for use on public streets, roads, and highways 
(not including a vehicle operated exclusively on a rail 
or rails) and which has at least 4 wheels. 
‘‘(4) REFERENCE
FUEL-ECONOMY
RATING.— 
The term ‘reference fuel-economy rating’ means, 
with respect to any motor vehicle, the fuel economy 
standard for such motor vehicle, expressed in gallons 
per mile, calculated by applying the relevant vehicle 
attributes to the mathematical function published 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
pursuant to section 32902(b)(3)(A) of title 49, 
United States Code. 
‘‘(5) OTHER TERMS.—The terms ‘automobile’, 
‘passenger automobile’, ‘light truck’, and ‘manufac-
turer’ have the meanings given such terms in regula-
tions prescribed by the Administrator of the Envi-
ronmental Protection Agency for purposes of the ad-
ministration of title II of the Clean Air Act (42 
U.S.C. 7521 et seq.). 
‘‘(e) SPECIAL RULES.— 
‘‘(1) BASIS REDUCTION.—For purposes of this 
subtitle, the basis of any property for which a credit 
is allowable under subsection (a) shall be reduced by 
the amount of such credit so allowed (determined 
without regard to subsection (c)). 
‘‘(2) NO DOUBLE BENEFIT.—No other credit 
shall be allowable under this chapter for a new 
qualified fuel-efficient motor vehicle with respect to 
which a credit is allowed under this section. 
‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTI-
TY.—In the case of a vehicle whose use is described 
in paragraph (3) or (4) of section 50(b) and which 
is not subject to a lease, the person who sold such 
vehicle to the person or entity using such vehicle 
shall be treated as the taxpayer that placed such ve-
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
hicle in service, but only if such person clearly dis-
closes to such person or entity in a document the 
amount of any credit allowable under subsection (a) 
with respect to such vehicle (determined without re-
gard to subsection (c)). For purposes of subsection 
(c), property to which this paragraph applies shall 
be treated as of a character subject to an allowance 
for depreciation. 
‘‘(4) 
PROPERTY
USED
OUTSIDE
UNITED 
STATES, ETC., NOT QUALIFIED.—No credit shall be 
allowable under subsection (a) with respect to any 
property referred to in section 50(b)(1) or with re-
spect to the portion of the cost of any property 
taken into account under section 179. 
‘‘(5) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
any property which ceases to be property eligible for 
such credit (including recapture in the case of a 
lease period of less than the economic life of a vehi-
cle). 
‘‘(6) ELECTION
NOT
TO
TAKE
CREDIT.—No 
credit shall be allowed under subsection (a) for any 
vehicle if the taxpayer elects to not have this section 
apply to such vehicle. 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
‘‘(7) INTERACTION
WITH
AIR
QUALITY
AND 
MOTOR VEHICLE SAFETY STANDARDS.—A motor ve-
hicle shall not be considered eligible for a credit 
under this section unless such vehicle is in compli-
ance with— 
‘‘(A) the applicable provisions of the Clean 
Air Act for the applicable make and model year 
of the vehicle (or applicable air quality provi-
sions of State law in the case of a State which 
has adopted such provisions under a waiver 
under section 209(b) of the Clean Air Act), and 
‘‘(B) the motor vehicle safety provisions of 
sections 30101 through 30169 of title 49, 
United States Code. 
‘‘(8) INFLATION ADJUSTMENT.—In the case of 
any model year beginning in a calendar year after 
2021, each dollar amount in subsection (a)(3)(B) 
shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the model year begins, deter-
mined by substituting ‘2020’ for ‘2016’ in sub-
paragraph (A)(ii) thereof. 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
Any increase determined under the preceding sen-
tence shall be rounded to the nearest multiple of 
$100. 
‘‘(f) REGULATIONS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary shall promulgate such regu-
lations as necessary to carry out the provisions of 
this section. 
‘‘(2) COORDINATION IN PRESCRIPTION OF CER-
TAIN REGULATIONS.—The Secretary of the Treas-
ury, in coordination with the Secretary of Transpor-
tation and the Administrator of the Environmental 
Protection Agency, shall prescribe such regulations 
as necessary to determine whether a motor vehicle 
meets the requirements to be eligible for a credit 
under this section.’’. 
(b) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
IMUM TAX.—Section 38(c)(4)(B) is amended by redesig-
nating clauses (i) through (xii) as clauses (ii) through 
(xiii), respectively, and by inserting before clause (ii) (as 
so redesignated) the following new clause: 
‘‘(i) the credit determined under sec-
tion 30E,’’. 
(c) DISPLAY OF CREDIT.—Section 32908(b)(1) of 
title 49, United States Code, is amended— 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
(1) by redesignating subparagraphs (E) and 
(F) as subparagraphs (F) and (G), and 
(2) by inserting after subparagraph (D) the fol-
lowing new subparagraph: 
‘‘(E) the amount of the fuel-efficient motor 
vehicle credit allowable with respect to the sale 
of the automobile under section 30E of the In-
ternal Revenue Code of 1986 (26 U.S.C. 
30E).’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 38(b) is amended by striking ‘‘plus’’ 
at the end of paragraph (34), by striking the period 
at the end of paragraph (35) and inserting ‘‘, plus’’, 
and by adding at the end the following new para-
graph: 
‘‘(36) the portion of the fuel performance re-
bate to which section 30E(c)(1) applies.’’. 
(2) Section 1016(a) is amended by striking 
‘‘and’’ at the end of paragraph (37), by striking the 
period at the end of paragraph (38) and inserting ‘‘, 
and’’, and by adding at the end the following new 
paragraph: 
‘‘(39) to the extent provided in section 
30E(e)(1).’’. 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
(3) Section 6501(m) is amended by inserting 
‘‘30E(e)(6),’’ after ‘‘30D(e)(4),’’. 
(4) The table of section for subpart C of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 30D the 
following new item: 
‘‘Sec. 30E. Fuel performance rebate.’’. 
SEC. 3. FUEL PERFORMANCE FEE. 
(a) IN GENERAL.—Section 4064 is amended to read 
as follows: 
‘‘SEC. 4064. FUEL PERFORMANCE FEE. 
‘‘(a) IMPOSITION OF TAX.— 
‘‘(1) IN GENERAL.—There is hereby imposed on 
the sale by the manufacturer of each fuel guzzler 
motor vehicle a tax equal to the product of— 
‘‘(A) the absolute value of the difference 
between the fuel-economy rating and the ref-
erence fuel-economy rating for such motor vehi-
cle for the model year, 
‘‘(B) 100, and 
‘‘(C) the applicable amount. 
‘‘(2) APPLICABLE AMOUNT.—For purposes of 
paragraph (1)(C), the applicable amount is equal 
to— 
‘‘(A) $1,500, 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
‘‘(B) $2,500, if the fuel-economy rating for 
such motor vehicle is more than 50 percent less 
efficient than the reference fuel-economy rating 
for such motor vehicle as determined under 
paragraph (1)(A), or 
‘‘(C) $3,500, if the fuel-economy rating for 
such motor vehicle is more than 75 percent less 
efficient than the reference fuel-economy rating 
for such motor vehicle as determined under 
paragraph (1)(A). 
‘‘(b) FUEL GUZZLER MOTOR VEHICLE.—For pur-
poses of this section— 
‘‘(1) IN
GENERAL.—The term ‘fuel guzzler 
motor vehicle’ means a passenger automobile or light 
truck— 
‘‘(A) which is treated as a motor vehicle 
for purposes of title II of the Clean Air Act, 
‘‘(B) which achieves a fuel-economy rating 
that is less efficient than the reference fuel- 
economy rating for such motor vehicle for the 
model year, 
‘‘(C) which has a gross vehicle weight rat-
ing of not more than 8,500 pounds, and 
‘‘(D) which is made by a manufacturer be-
ginning with model year 2023. 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
‘‘(2) EXCEPTION FOR EMERGENCY VEHICLES.— 
The term ‘fuel guzzler motor vehicle’ does not in-
clude any vehicle sold for use and used— 
‘‘(A) as an ambulance or combination am-
bulance-hearse, 
‘‘(B) by the United States or by a State or 
local government for police or other law en-
forcement purposes, or 
‘‘(C) for other emergency uses prescribed 
by the Secretary by regulations. 
‘‘(c) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) FUEL-ECONOMY RATING.—The term ‘fuel- 
economy rating’ means, with respect to any motor 
vehicle, the combined fuel-economy rating for such 
motor vehicle, expressed in gallons per mile, deter-
mined in accordance with section 32904 of title 49, 
United States Code. 
‘‘(2) MODEL YEAR.—The term ‘model year’ has 
the meaning given such term under section 32901(a) 
of such title 49. 
‘‘(3) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ means any vehicle which is manufactured pri-
marily for use on public streets, roads, and highways 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
(not including a vehicle operated exclusively on a rail 
or rails) and which has at least 4 wheels. 
‘‘(4) REFERENCE
FUEL-ECONOMY
RATING.— 
The term ‘reference fuel-economy rating’ means, 
with respect to any motor vehicle, the fuel economy 
standard for such motor vehicle, expressed in gallons 
per mile, calculated by applying the relevant vehicle 
attributes to the mathematical function published 
pursuant to section 32902(b)(3)(A) of title 49, 
United States Code. 
‘‘(5) OTHER TERMS.—The terms ‘automobile’, 
‘passenger automobile’, ‘light truck’, and ‘manufac-
turer’ have the meanings given such terms in regula-
tions prescribed by the Administrator of the Envi-
ronmental Protection Agency for purposes of the ad-
ministration of title II of the Clean Air Act (42 
U.S.C. 7521 et seq.). 
‘‘(d) INFLATION ADJUSTMENT.—In the case of any 
model year beginning in a calendar year after 2023, each 
dollar amount in subsection (a)(2) shall be increased by 
an amount equal to— 
‘‘(1) such dollar amount, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year in which 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
the model year begins, determined by substituting 
‘2022’ for ‘2016’ in subparagraph (A)(ii) thereof. 
Any increase determined under the preceding sentence 
shall be rounded to the nearest multiple of $100.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) The heading for part I of subchapter A of 
chapter 32 is amended by striking ‘‘GAS’’ and in-
serting ‘‘FUEL’’. 
(2) The table of parts for subchapter A of chap-
ter 32 is amended by striking ‘‘Gas’’ in the item re-
lating to part I and inserting ‘‘Fuel’’. 
(3) The table of sections for part I of sub-
chapter A of chapter 32 is amended by striking 
‘‘Gas’’ in the item relating to section 4064 and in-
serting ‘‘Fuel’’. 
(4) The heading for subsection (d) of section 
1016 is amended by striking ‘‘GAS GUZZLER TAX’’ 
and inserting ‘‘FUEL PERFORMANCE FEE’’. 
(5) The heading for subsection (e) of section 
4217 is amended by striking ‘‘GAS GUZZLER TAX’’ 
and inserting ‘‘FUEL PERFORMANCE FEE’’. 
(6) The heading for subparagraph (B) of sec-
tion 4217(e)(3) is amended by striking ‘‘GAS GUZ-
ZLER
TAX’’ and inserting ‘‘FUEL
PERFORMANCE 
FEE’’. 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
(7) Section 4217(e) is amended by striking 
‘‘gas guzzler tax’’ each place it appears and insert-
ing ‘‘fuel performance fee’’. 
Æ 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6301
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS