I
103D CONGRESS
1ST SESSION
H. R. 2925
To amend the Internal Revenue Code of 1986 to allow individuals a credit
against income tax for the sale of older, polluting motor vehicles to
certain purchasers who scrap the vehicles.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 6, 1993
Mr. COX 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 allow indi-
viduals a credit against income tax for the sale of older,
polluting motor vehicles to certain purchasers who scrap
the 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 ‘‘Junk Your Clunker
Tax Credit Act of 1993’’.
SEC. 2. FINDINGS.
The Congress finds the following:
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(1) The use of motor vehicles generates more
air pollution than any other single human activity.
Automobiles are responsible for the vast majority of
poisonous carbon monoxide emissions, in addition to
those emissions that lead to the formation of smog
during the summer months.
(2) Since passage of the Clean Air Act in 1970,
carbon monoxide and hydrocarbon emissions have
decreased 96 percent, and ozone-causing nitrous ox-
ides have fallen 76 percent. Further automotive
emissions reductions can be achieved most effectively
and efficiently by focusing our smog control efforts
on those cars which produce a disproportionate
amount of pollution.
(3) There is a steady and well-documented cor-
relation between the age of a car and the amount of
pollution it emits. The Environmental Protection
Agency has calculated that cars built before the
1980 model year are responsible for 86 percent of
total automotive emissions.
(4) Providing an economic incentive, in the
form of a tax credit, for owners of vehicles built be-
fore 1980 to retire these cars will significantly re-
duce overall car emissions and improve air quality.
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More importantly, it will do so far more efficiently
than costly and inflexible mandates.
SEC. 3. CREDIT FOR OLDER MOTOR VEHICLES SOLD TO
PURCHASERS WHO SCRAP THE VEHICLES.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 22 the following new
section:
‘‘SEC. 23. SALES OF HIGHLY-POLLUTING MOTOR VEHICLES
TO CERTAIN PURCHASERS WHO SCRAP THE
VEHICLES.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount
equal to $700 for each automobile—
‘‘(1) which is sold by the taxpayer during the
taxable year to an approved purchaser who agrees in
writing to scrap it,
‘‘(2) which has been held by the taxpayer for at
least 2 years, and
‘‘(3) the model year of which is before 1980.
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) AUTOMOBILE.—The term ‘automobile’ has
the meaning given such term by section 4064(b)(1).
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‘‘(2) MODEL YEAR.—The term ‘model year’ has
the meaning given such term by section 4064(b)(4).
‘‘(3) APPROVED
PURCHASER.—The term ‘ap-
proved purchaser’ means any person engaged in the
trade or business of scrapping automobiles who
meets such requirements as the Secretary may by
regulations prescribe for purposes of this section.’’
(b) CLERICAL AMENDMENT.—The table of sections
for such subpart A is amended by inserting after the item
relating to section 22 the following new item:
‘‘Sec. 23. Sales of older highly-polluting motor vehicles to certain
purchasers who scrap the vehicles.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to sales in calendar years begin-
ning after the date of the enactment of this Act.
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