I 
116TH CONGRESS 
2D SESSION 
H. R. 7862 
To amend the Internal Revenue Code of 1986 to provide tax incentives 
and fees for increasing motor vehicle fuel economy, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 30, 2020 
Mr. CASTEN of Illinois introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on En-
ergy and Commerce, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
tax incentives and fees for increasing motor vehicle fuel 
economy, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Efficient Vehicle Leadership Act of 2019’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
SEC. 2. TAX CREDIT FOR FUEL-EFFICIENT MOTOR VEHI-
CLES. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 (relating to other credits) is 
amended by inserting after section 30D the following new 
section: 
‘‘SEC. 30E. FUEL PERFORMANCE REBATE. 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN GENERAL.—There shall be allowed as a 
credit against the tax imposed by this chapter for 
the taxable year an amount equal to the amount de-
termined under paragraph (2) with respect to any 
new qualified fuel-efficient motor vehicle placed in 
service by the taxpayer during the taxable year. 
‘‘(2) CREDIT AMOUNT.—With respect to each 
new qualified fuel-efficient motor vehicle, the amount 
determined under this paragraph shall be 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, 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
‘‘(B) 100, and 
‘‘(C) the applicable amount. 
‘‘(3) APPLICABLE AMOUNT.—For purposes of 
paragraph (2)(C), the applicable amount is equal 
to— 
‘‘(A) in the case of model year 2021— 
‘‘(i) $1,000, or 
‘‘(ii) $2,000, if the fuel-economy rat-
ing for such motor vehicle is at least 50 
percent more efficient than the reference 
fuel-economy rating for such motor vehicle 
as determined under paragraph (2)(A), 
and 
‘‘(B) in the case of any succeeding model 
year— 
‘‘(i) $1,500, 
‘‘(ii) $2,500, if the fuel-economy rat-
ing for such motor vehicle is at least 50 
percent more efficient than the reference 
fuel-economy rating for such motor vehicle 
as determined under paragraph (2)(A), or 
‘‘(iii) $3,500, if the fuel-economy rat-
ing for such motor vehicle is at least 75 
percent more efficient than the reference 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
fuel-economy rating for such motor vehicle 
as determined under paragraph (2)(A). 
‘‘(b) NEW QUALIFIED FUEL-EFFICIENT MOTOR VE-
HICLE.—For purposes of this section, the term ‘new quali-
fied fuel-efficient motor vehicle’ means a passenger auto-
mobile or light truck— 
‘‘(1) which is treated as a motor vehicle for 
purposes of title II of the Clean Air Act, 
‘‘(2) which achieves a fuel-economy rating that 
is more efficient than the reference fuel-economy 
rating for such motor vehicle for the model year, 
‘‘(3) for which standards are prescribed pursu-
ant to section 32902 of title 49, United States Code, 
‘‘(4) the original use of which commences with 
the taxpayer, 
‘‘(5) which is acquired for use or lease by the 
taxpayer and not for resale, and 
‘‘(6) which is made by a manufacturer begin-
ning with model year 2021. 
‘‘(c) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—So much of the credit 
which would be allowed under subsection (a) for any 
taxable year (determined without regard to this sub-
section) that is attributable to property of a char-
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
acter subject to an allowance for depreciation shall 
be treated as a credit listed in section 38(b) for such 
taxable year (and not allowed under subsection (a)). 
‘‘(2) REFUNDABLE PERSONAL CREDIT.— 
‘‘(A) IN GENERAL.—For purposes of this 
title, the credit allowed under subsection (a) for 
any taxable year (determined after application 
of paragraph (1)) shall be treated as a credit 
allowable under subpart C for such taxable year 
(and not allowed under subsection (a)). 
‘‘(B) 
REFUNDABLE
CREDIT
MAY
BE 
TRANSFERRED.— 
‘‘(i) IN GENERAL.—A taxpayer may, 
in connection with the purchase of a new 
qualified fuel-efficient motor vehicle, trans-
fer any refundable credit described in sub-
paragraph (A) to any person who is in the 
trade or business of selling new qualified 
fuel-efficient motor vehicles and who sold 
such vehicle to the taxpayer, but only if 
such person clearly discloses to such tax-
payer, through the use of a window sticker 
attached to the new qualified fuel-efficient 
vehicle— 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS
‘‘(I) the amount of the refund-
able credit described in subparagraph 
(A) with respect to such vehicle, and 
‘‘(II) a notification that the tax-
payer will not be eligible for any cred-
it under section 30D with respect to 
such vehicle unless the taxpayer elects 
not to have this section apply with re-
spect to such vehicle. 
‘‘(ii) CERTIFICATION.—A transferee 
of a refundable credit described in sub-
paragraph (A) may not claim such credit 
unless such claim is accompanied by a cer-
tification to the Secretary that the trans-
feree reduced the price the taxpayer paid 
for the new qualified fuel-efficient motor 
vehicle by the entire amount of such re-
fundable credit. 
‘‘(iii) CONSENT REQUIRED FOR REV-
OCATION.—Any transfer under clause (i) 
may be revoked only with the consent of 
the Secretary. 
‘‘(iv) REGULATIONS.—The Secretary 
may prescribe such regulations as nec-
essary to ensure that any refundable credit 
VerDate Sep 11 2014 
23:35 Aug 17, 2020
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H7862.IH
H7862
kjohnson on DSK79L0C42PROD with BILLS