I 
117TH CONGRESS 
2D SESSION 
H. R. 7295 
To amend the Internal Revenue Code of 1986 to provide an advanceable 
refundable credit for individuals who own or lease certain motor vehicles. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 30, 2022 
Mr. HORSFORD introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
an advanceable refundable credit for individuals who own 
or lease certain motor vehicles. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Saving Americans from 
Vehicle Energy Costs Act’’. 
SEC. 2. ADVANCEABLE REFUNDABLE CREDIT FOR INDIVID-
UALS WHO OWN OR LEASE CERTAIN MOTOR 
VEHICLES. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by inserting after section 36B the fol-
lowing new section: 
‘‘SEC. 36C. REFUNDABLE CREDIT FOR OWNING OR LEASING 
CERTAIN MOTOR VEHICLES. 
‘‘(a) IN GENERAL.—In the case of an eligible indi-
vidual, there shall be allowed as a credit against the tax 
imposed by this subtitle for any taxable year the sum of 
the monthly credit amounts determined with respect to 
such individual for specified months during such taxable 
year. 
‘‘(b) 
MONTHLY
CREDIT
AMOUNT.—The 
term 
‘monthly credit amount’ means, with respect to any indi-
vidual for any specified month, the product of— 
‘‘(1) $300, multiplied by 
‘‘(2) the number of qualified motor vehicles 
owned or leased by such individual as the close of 
such month. 
‘‘(c) LIMITATION BASED ON ADJUSTED GROSS IN-
COME.—No credit shall be allowed under this section for 
any taxable year if the adjusted gross income of the tax-
payer for such taxable year exceeds $200,000 ($400,000 
in the case of a joint return). 
‘‘(d) OTHER DEFINITIONS.—For purposes of this 
section— 
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‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
individual’ means any individual (other than an es-
tate or trust) who resides in the United States. 
‘‘(2) SPECIFIED MONTH.—The term ‘specified 
month’ means the first 3 calendar months beginning 
after the date of the enactment of this section. 
‘‘(3) QUALIFIED MOTOR VEHICLE.—The term 
‘qualified motor vehicle’ means any vehicle which— 
‘‘(A) is treated as a motor vehicle for pur-
poses of title II of the Clean Air Act, and 
‘‘(B) is registered for highway use. 
‘‘(e) RULES RELATED TO OWNERSHIP AND LEAS-
ING.—For purposes of this section— 
‘‘(1) IN
GENERAL.—An individual shall be 
treated as owning a motor vehicle only if such per-
son is the registered owner of such motor vehicle. 
‘‘(2) LEASES.—Notwithstanding paragraph (1), 
any motor vehicle subject to a lease shall be treated 
as owned by the lessee (and only by the lessee). 
‘‘(3) TREATMENT
OF
MULTIPLE
OWNERS
OR 
LESSEES.—Except as otherwise provided by the Sec-
retary, if more than one individual is listed on any 
ownership registration or lease as being the owner or 
lessee (as the case may be) only the first individual 
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so listed shall be treated as the owner or lessee (as 
the case may be) for purposes of this section. 
‘‘(f) COORDINATION WITH ADVANCE PAYMENT OF 
CREDIT.—With respect to any taxable year, the amount 
which (but for this subsection) would be allowed as a cred-
it to a taxpayer under subsection (a) shall be reduced (but 
not below zero) by the aggregate amount paid to such tax-
payer under section 7527B with respect to months during 
such taxable year.’’. 
(b) ADVANCE PAYMENT.—Chapter 77 of such Code 
is amended by inserting after section 7527A the following 
new section: 
‘‘SEC. 7527B. ADVANCE PAYMENT OF CREDIT FOR OWNING 
OR LEASING CERTAIN MOTOR VEHICLES. 
‘‘(a) IN GENERAL.—The Secretary shall establish a 
program for making monthly payments of the monthly 
credit amounts determined under section 36C (without re-
gard to subsection (f) thereof) with respect to taxpayers. 
‘‘(b) INCOME BASED ON PRIOR YEAR.—For purposes 
of determining any payment under this section, section 
36C(c) shall be applied by substituting ‘the preceding tax-
able year’ for ‘such taxable year’. 
‘‘(c) ON-LINE PORTAL.—The Secretary shall estab-
lish an on-line portal which allows taxpayers to submit 
such information as the Secretary may require to allow 
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the Secretary to determine the proper amount of each 
monthly payment to such taxpayer under this section. 
‘‘(d) NOTICE OF PAYMENTS.—Not later than Janu-
ary 31 of the calendar year following any calendar year 
during which the Secretary makes one or more payments 
to any taxpayer under this section, the Secretary shall pro-
vide such taxpayer with a written notice which includes 
the taxpayer’s taxpayer identity (as defined in section 
6103(b)(6)), the aggregate amount of such payments 
made to such taxpayer during such calendar year, and 
such other information as the Secretary determines appro-
priate. 
‘‘(e) ADMINISTRATIVE PROVISIONS.— 
‘‘(1) APPLICATION OF ELECTRONIC FUNDS PAY-
MENT
REQUIREMENTS.—Any payment under this 
section shall be made by electronic funds transfer to 
the same extent and in the same manner as if such 
payment were a Federal payment not made under 
this title. 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subparagraphs (B) and (C) of 
section 6428A(f)(3) shall apply for purposes of this 
section. 
‘‘(3) TREATMENT
OF
PAYMENTS.—Any pay-
ment under this section shall be treated for purposes 
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of section 1324 of title 31, United States Code, in 
the same manner as a refund due from a credit pro-
vision which is described in subsection (b)(2) of such 
section. 
‘‘(4) EXCEPTION
FROM
REDUCTION
OR
OFF-
SET.—Any payment under this section shall not 
be— 
‘‘(A) subject to reduction or offset pursu-
ant to section 3716 or 3720A of title 31, 
United States Code, 
‘‘(B) subject to reduction or offset pursu-
ant to subsection (c), (d), (e), or (f) of section 
6402 of the Internal Revenue Code of 1986, or 
‘‘(C) reduced or offset by other assessed 
Federal taxes that would otherwise be subject 
to levy or collection. 
‘‘(5) ASSIGNMENT OF BENEFITS.— 
‘‘(A) IN GENERAL.—The right of any per-
son to any applicable payment under this sec-
tion shall not be transferable or assignable, at 
law or in equity, and no applicable payment 
shall be subject to, execution, levy, attachment, 
garnishment, or other legal process, or the op-
eration of any bankruptcy or insolvency law. 
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‘‘(B) ENCODING
OF
PAYMENTS.—In the 
case of an applicable payment that is paid elec-
tronically by direct deposit through the Auto-
mated Clearing House (ACH) network, the Sec-
retary shall— 
‘‘(i) issue the payment using a unique 
identifier that is reasonably sufficient to 
allow a financial institution to identify the 
payment as an applicable payment, and 
‘‘(ii) further encode the payment pur-
suant to the same specifications as re-
quired for a benefit payment defined in 
section 212.3 of title 31, Code of Federal 
Regulations. 
‘‘(C) GARNISHMENT.— 
‘‘(i) ENCODED
PAYMENTS.—In the 
case of a garnishment order that applies to 
an account that has received an applicable 
payment that is encoded as provided in 
subparagraph (B), a financial institution 
shall follow the requirements and proce-
dures set forth in part 212 of title 31, 
Code of Federal Regulations, except— 
‘‘(I) 
notwithstanding 
section 
212.4 of title 31, Code of Federal 
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Regulations (and except as provided 
in subclause (II)), a financial institu-
tion shall not fail to follow the proce-
dures of sections 212.5 and 212.6 of 
such title with respect to a garnish-
ment order merely because such order 
has attached, or includes, a notice of 
right to garnish federal benefits issued 
by a State child support enforcement 
agency, and 
‘‘(II) a financial institution shall 
not, with regard to any applicable 
payment, be required to provide the 
notice referenced in sections 212.6 
and 212.7 of title 31, Code of Federal 
Regulations. 
‘‘(ii) OTHER PAYMENTS.—In the case 
of a garnishment order (other than an 
order that has been served by the United 
States) that has been received by a finan-
cial institution and that applies to an ac-
count into which an applicable payment 
that has not been encoded as provided in 
subparagraph (B) has been deposited elec-
tronically on any date during the lookback 
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period or into which an applicable payment 
that has been deposited by check on any 
date in the lookback period, the financial 
institution, upon the request of the account 
holder, shall treat the amount of the funds 
in the account at the time of the request, 
up to the amount of the applicable pay-
ment (in addition to any amounts other-
wise protected under part 212 of title 31, 
Code of Federal Regulations), as exempt 
from a garnishment order without requir-
ing the consent of the party serving the 
garnishment order or the judgment cred-
itor. 
‘‘(iii) LIABILITY.—A financial institu-
tion that acts in good faith in reliance on 
clauses (i) or (ii) shall not be subject to li-
ability or regulatory action under any Fed-
eral or State law, regulation, court or other 
order, or regulatory interpretation for ac-
tions concerning any applicable payments. 
‘‘(D) NO
RECLAMATION
RIGHTS.—This 
paragraph shall not alter the status of applica-
ble payments as tax refunds or other nonbenefit 
payments for purpose of any reclamation rights 
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of the Department of the Treasury or the Inter-
nal Revenue Service as per part 210 of title 31, 
Code of Federal Regulations. 
‘‘(E) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) ACCOUNT
HOLDER.—The term 
‘account holder’ means a natural person 
whose name appears in a financial institu-
tion’s records as the direct or beneficial 
owner of an account. 
‘‘(ii) ACCOUNT
REVIEW.—The term 
‘account review’ means the process of ex-
amining deposits in an account to deter-
mine if an applicable payment has been de-
posited into the account during the 
lookback period. The financial institution 
shall perform the account review following 
the procedures outlined in section 212.5 of 
title 31, Code of Federal Regulations and 
in accordance with the requirements of sec-
tion 212.6 of title 31, Code of Federal 
Regulations. 
‘‘(iii) APPLICABLE
PAYMENT.—The 
term ‘applicable payment’ means any pay-
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ment made pursuant to subsection (a) of 
this section. 
‘‘(iv) GARNISHMENT.—The term ‘gar-
nishment’ means execution, levy, attach-
ment, garnishment, or other legal process. 
‘‘(v) 
GARNISHMENT
ORDER.—The 
term ‘garnishment order’ means a writ, 
order, notice, summons, judgment, levy, or 
similar written instruction issued by a 
court, a State or State agency, a munici-
pality or municipal corporation, or a State 
child support enforcement agency, includ-
ing a lien arising by operation of law for 
overdue child support or an order to freeze 
the assets in an account, to effect a gar-
nishment against a debtor. 
‘‘(vi) LOOKBACK PERIOD.—The term 
‘lookback period’ means the two month pe-
riod that begins on the date preceding the 
date of account review and ends on the 
corresponding date of the month two 
months earlier, or on the last date of the 
month two months earlier if the cor-
responding date does not exist. 
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‘‘(f) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as the Secretary determines 
necessary or appropriate to carry out the purposes of this 
section and section 36C(f), including regulations or other 
guidance which provides for the application of such sec-
tions where the filing status of the taxpayer for a taxable 
year is different from the status used for determining 
monthly payments under this section.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) of the Internal Rev-
enue Code of 1986 is amended by inserting ‘‘36C,’’ 
after ‘‘36B,’’. 
(2) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting 
‘‘36C,’’ after ‘‘36B,’’. 
(3) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after the 
item relating to section 36B the following new item: 
‘‘Sec. 36C. Refundable credit for owning or leasing certain motor vehicles.’’. 
(4) The table of sections for chapter 77 of such 
Code is amended by inserting after the item relating 
to section 7527A the following new item: 
‘‘Sec. 7527B. Advance payment of credit for owning or leasing certain motor 
vehicles.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to months beginning after the date 
of the enactment of this Act, in taxable years ending after 
such date. 
Æ 
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