I
107TH CONGRESS
2D SESSION
H. R. 3631
To amend the Internal Revenue Code of 1986 to modify the electric motor
vehicle credit, including an expansion of the credit to certain 3-wheeled
vehicles.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 24, 2002
Mr. PASCRELL (for himself and Mr. FARR of California) 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 modify
the electric motor vehicle credit, including an expansion
of the credit to certain 3-wheeled 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 ‘‘Wider Incentives for
Non-Gasoline Small Electric Vehicles Act of 2002’’ or the
‘‘WINGS EV Act of 2002’’.
SEC. 2. MODIFICATION OF CREDIT FOR QUALIFIED ELEC-
TRIC VEHICLES.
(a) AMOUNT OF CREDIT.—
(1) IN GENERAL.—Section 30(a) of the Internal
Revenue Code of 1986 (relating to allowance of
credit) is amended by striking ‘‘10 percent of’’.
(2) LIMITATION
OF
CREDIT
ACCORDING
TO
TYPE OF VEHICLE.—Section 30(b) of such Code (re-
lating to limitations) is amended—
(A) by striking paragraphs (1) and (2) and
inserting the following:
‘‘(1) LIMITATION ACCORDING TO TYPE OF VE-
HICLE.—The amount of the credit allowed under
subsection (a) for any vehicle shall not exceed the
greatest of the following amounts applicable to such
vehicle:
‘‘(A) In the case of a vehicle which con-
forms to the Motor Vehicle Safety Standard
500 prescribed by the Secretary of Transpor-
tation and in the case of an eligible 3-wheeled
vehicle, the lesser of—
‘‘(i) 10 percent of the manufacturer’s
suggested retail price of the vehicle, or
‘‘(ii) $4,000.
‘‘(B) In the case of a vehicle not described
in subparagraph (A) with a gross vehicle weight
rating not exceeding 8,500 pounds—
‘‘(i) $4,000, or
‘‘(ii) $6,000, if such vehicle is—
‘‘(I) capable of a driving range of
at least 100 miles on a single charge
of the vehicle’s rechargeable batteries
and measured pursuant to the urban
dynamometer schedules under appen-
dix I to part 86 of title 40, Code of
Federal Regulations, or
‘‘(II) capable of a payload capac-
ity of at least 1000 pounds.
‘‘(C) In the case of a vehicle with a gross
vehicle weight rating exceeding 8,500 but not
exceeding 14,000 pounds, $10,000.
‘‘(D) In the case of a vehicle with a gross
vehicle weight rating exceeding 14,000 but not
exceeding 26,000 pounds, $20,000.
‘‘(E) In the case of a vehicle with a gross
vehicle weight rating exceeding 26,000 pounds,
$40,000.’’, and
(B) by redesignating paragraph (3) as
paragraph (2).
(3) CONFORMING AMENDMENTS.—
(A) Section 53(d)(1)(B)(iii) of such Code
is amended by striking ‘‘section 30(b)(3)(B)’’
and inserting ‘‘section 30(b)(2)(B)’’.
(B) Section 55(c)(2) of such Code is
amended by striking ‘‘30(b)(3)’’ and inserting
‘‘30(b)(2)’’.
(b) QUALIFIED BATTERY ELECTRIC VEHICLE.—
(1) IN GENERAL.—Section 30(c)(1)(A) of the
Internal Revenue Code of 1986 (defining qualified
electric vehicle) is amended to read as follows:
‘‘(A) which is—
‘‘(i) operated solely by use of a bat-
tery or battery pack, or
‘‘(ii) powered primarily through the
use of an electric battery or battery pack
using a flywheel or capacitor which stores
energy produced by an electric motor
through regenerative braking to assist in
vehicle operation,’’.
(2) 
ELIGIBLE
3-WHEELED
VEHICLES
IN-
CLUDED.—Subsection (c) of section 30 of such Code
is amended by adding at the end the following new
paragraph:
‘‘(3) ELIGIBLE
3-WHEELED
VEHICLES
IN-
CLUDED.—
‘‘(A) IN GENERAL.—An eligible 3-wheeled
vehicle shall not fail to be treated as a qualified
battery electric vehicle by reason of having only
3 wheels.
‘‘(B) ELIGIBLE
3-WHEELED
VEHICLE.—
The term ‘eligible 3-wheeled vehicle’ means any
vehicle which—
‘‘(i) conforms to the motor vehicle
safety standards prescribed by the Sec-
retary of Transportation that are applica-
ble to motorcycles, and
‘‘(ii) is capable of a driving range of
at least 50 miles on a single charge of the
vehicle’s rechargeable batteries and meas-
ured pursuant to the urban dynamometer
schedules under appendix I to part 86 of
title 40, Code of Federal Regulations.’’
(3) LEASED VEHICLES.—Section 30(c)(1)(C) of
such Code is amended by inserting ‘‘or lease’’ after
‘‘use’’.
(4) CONFORMING AMENDMENTS.—
(A) Subsections (a), (b)(2), and (c) of sec-
tion 30 of such Code are each amended by in-
serting ‘‘battery’’ after ‘‘qualified’’ each place it
appears.
(B) The heading of subsection (c) of sec-
tion 30 of such Code is amended by inserting
‘‘BATTERY’’ after ‘‘QUALIFIED’’.
(C) The heading of section 30 of such
Code is amended by inserting ‘‘BATTERY’’
after ‘‘QUALIFIED’’.
(D) The item relating to section 30 of such
Code in the table of sections for subpart B of
part IV of subchapter A of chapter 1 is amend-
ed by inserting ‘‘battery’’ after ‘‘qualified’’.
(E) Section 179A(c)(3) of such Code is
amended by inserting ‘‘battery’’ before ‘‘elec-
tric’’.
(F) The heading of paragraph (3) of sec-
tion 179A(c) of such Code is amended by in-
serting ‘‘BATTERY’’ before ‘‘ELECTRIC’’.
(c) ADDITIONAL SPECIAL RULES.—Section 30(d) of
the Internal Revenue Code of 1986 (relating to special
rules) is amended by adding at the end the following:
‘‘(5) NO
DOUBLE
BENEFIT.—The amount of
any deduction or credit allowable under this chapter
for any cost taken into account in computing the
amount of the credit determined under subsection
(a) shall be reduced by the amount of such credit at-
tributable to such cost.
‘‘(6) PROPERTY USED BY TAX-EXEMPT ENTI-
TIES.—In the case of a credit amount which is al-
lowable with respect to a vehicle which is acquired
by an entity exempt from tax under this chapter, the
person which sells or leases such vehicle to the entity
shall be treated as the taxpayer with respect to the
vehicle for purposes of this section and the credit
shall be allowed to such person, but only if the per-
son clearly discloses to the entity in any sale or lease
contract the specific amount of any credit otherwise
allowable to the entity under this section and re-
duces the sale or lease price of such vehicle by an
equivalent amount of such credit.’’.
(d) EXTENSION.—Section 30(e) of the Internal Rev-
enue Code of 1986 (relating to termination) is amended
by striking ‘‘2004’’ and inserting ‘‘2007’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to property placed in service after
December 31, 2001, in taxable years ending after such
date.
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