Saving Americans from Vehicle Energy Costs Act
Bill: H.R.7295 | Sponsor: Rep. Horsford, Steven (D-NV)
Policy area: Taxation

Summary:
Saving Americans from Vehicle Energy Costs Act
This bill allows individual taxpayers a new refundable tax credit for owning or leasing a vehicle treated as a motor vehicle under the Clean Air Act and registered for highway use. The monthly amount of the credit is $300 times the number of such vehicles owned or leased by the taxpayer. Taxpayers whose adjusted gross income exceeds $200,000 ($400,000 in the case of a joint tax return) in any taxable year are not eligible for the credit.
The Department of the Treasury must establish a program for advance monthly payments of the credit.

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 Representatives 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 INDIVIDUALS WHO OWN OR LEASE 
              CERTAIN MOTOR VEHICLES.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36B the following new section:

``SEC. 36C. REFUNDABLE CREDIT FOR OWNING OR LEASING CERTAIN MOTOR 
              VEHICLES.

    ``(a) In General.--In the case of an eligible individual, 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 individual 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 Income.--No credit shall 
be allowed under this section for any taxable year if the adjusted 
gross income of the taxpayer for such taxable year exceeds $200,000 
($400,000 in the case of a joint return).
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Eligible individual.--The term `eligible individual' 
        means any individual (other than an estate 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 purposes of 
                title II of the Clean Air Act, and
                    ``(B) is registered for highway use.
    ``(e) Rules Related to Ownership and Leasing.--For purposes of this 
section--
            ``(1) In general.--An individual shall be treated as owning 
        a motor vehicle only if such person 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 Secretary, 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 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 credit to a taxpayer under subsection (a) shall be reduced 
(but not below zero) by the aggregate amount paid to such taxpayer 
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 regard 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 taxable year' for `such taxable year'.
    ``(c) On-Line Portal.--The Secretary shall establish an on-line 
portal which allows taxpayers to submit such information as the 
Secretary may require to allow the Secretary to determine the proper 
amount of each monthly payment to such taxpayer under this section.
    ``(d) Notice of Payments.--Not later than January 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 provide 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 appropriate.
    ``(e) Administrative Provisions.--
            ``(1) Application of electronic funds payment 
        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 payment under this 
        section shall be treated for purposes of section 1324 of title 
        31, United States Code, in the same manner as a refund due from 
        a credit provision which is described in subsection (b)(2) of 
        such section.
            ``(4) Exception from reduction or offset.--Any payment 
        under this section shall not be--
                    ``(A) subject to reduction or offset pursuant to 
                section 3716 or 3720A of title 31, United States Code,
                    ``(B) subject to reduction or offset pursuant 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 person to any 
                applicable payment under this section 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 operation of any bankruptcy or insolvency law.
                    ``(B) Encoding of payments.--In the case of an 
                applicable payment that is paid electronically by 
                direct deposit through the Automated Clearing House 
                (ACH) network, the Secretary 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 pursuant 
                        to the same specifications as required 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 procedures set forth in part 
                        212 of title 31, Code of Federal Regulations, 
                        except--
                                    ``(I) notwithstanding section 212.4 
                                of title 31, Code of Federal 
                                Regulations (and except as provided in 
                                subclause (II)), a financial 
                                institution shall not fail to follow 
                                the procedures of sections 212.5 and 
                                212.6 of such title with respect to a 
                                garnishment 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 financial institution and that 
                        applies to an account into which an applicable 
                        payment that has not been encoded as provided 
                        in subparagraph (B) has been deposited 
                        electronically on any date during the lookback 
                        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 payment (in addition to any 
                        amounts otherwise protected under part 212 of 
                        title 31, Code of Federal Regulations), as 
                        exempt from a garnishment order without 
                        requiring the consent of the party serving the 
                        garnishment order or the judgment creditor.
                            ``(iii) Liability.--A financial institution 
                        that acts in good faith in reliance on clauses 
                        (i) or (ii) shall not be subject to liability 
                        or regulatory action under any Federal or State 
                        law, regulation, court or other order, or 
                        regulatory interpretation for actions 
                        concerning any applicable payments.
                    ``(D) No reclamation rights.--This paragraph shall 
                not alter the status of applicable payments as tax 
                refunds or other nonbenefit payments for purpose of any 
                reclamation rights of the Department of the Treasury or 
                the Internal 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 institution's records as 
                        the direct or beneficial owner of an account.
                            ``(ii) Account review.--The term `account 
                        review' means the process of examining deposits 
                        in an account to determine if an applicable 
                        payment has been deposited 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 
                        section 212.6 of title 31, Code of Federal 
                        Regulations.
                            ``(iii) Applicable payment.--The term 
                        `applicable payment' means any payment made 
                        pursuant to subsection (a) of this section.
                            ``(iv) Garnishment.--The term `garnishment' 
                        means execution, levy, attachment, 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 municipality or municipal 
                        corporation, or a State child support 
                        enforcement agency, including a lien arising by 
                        operation of law for overdue child support or 
                        an order to freeze the assets in an account, to 
                        effect a garnishment against a debtor.
                            ``(vi) Lookback period.--The term `lookback 
                        period' means the two month period 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 
                        corresponding date does not exist.
    ``(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 sections 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 Revenue 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 Revenue 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.''.
    (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.
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