FAST Electricity Act
Bill: S.1791 | Sponsor: Sen. Cantwell, Maria (D-WA)
Policy area: Taxation

Summary:
Fueling America's Security and Transportation with Electricity Act of 2021 or the FAST Electricity Act
This bill expands the tax credit for plug-in electric drive motor vehicles to include a 30% credit for additional electric transportation options capable of moving passengers, cargo, or property and powered by an integrated, on-board electric propulsion system. It also allows a credit for recharging and hydrogen refueling property and provides loan guarantees for transportation electrification domestic manufacturing facilities.

To amend the Internal Revenue Code of 1986 to expand existing tax 
credits to include non-passenger electric-powered vehicles, associated 
    recharging and refueling infrastructure, and for other purposes.

    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 ``Fueling America's Security and 
Transportation with Electricity Act of 2021'' or the ``FAST Electricity 
Act''.

SEC. 2. CREDIT FOR QUALIFIED ELECTRIC TRANSPORTATION OPTIONS.

    (a) In General.--Section 30D of the Internal Revenue Code of 1986 
is amended--
            (1) in the heading, by striking ``plug-in electric drive 
        motor'' and inserting ``electric'',
            (2) by adding at the end the following new subsection:
    ``(h) Credit Allowed for Qualified Electric Transportation 
Options.--
            ``(1) In general.--In the case of a qualified electric 
        transportation option--
                    ``(A) there shall be allowed as a credit against 
                the tax imposed by this chapter for the taxable year an 
                amount equal to the applicable percentage of the cost 
                of the qualified electric transportation option placed 
                in service by the taxpayer during the taxable year,
                    ``(B) the amount of the credit allowed under 
                subparagraph (A) shall be treated as a credit allowed 
                under subsection (a), and
                    ``(C) the requirements described in subsection 
                (f)(7) shall not apply.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1)(A), the applicable percentage shall be--
                    ``(A) in the case of a qualified electric 
                transportation option placed in service after December 
                31, 2021, and before January 1, 2028, 30 percent,
                    ``(B) in the case of a qualified electric 
                transportation option placed in service during a 
                calendar year after 2027 and before 2033, the 
                applicable percentage determined under this paragraph 
                for the preceding calendar year, reduced by 5 
                percentage points, and
                    ``(C) in the case of a qualified electric 
                transportation option placed in service after calendar 
                year 2032, 0 percent.
            ``(3) Qualified electric transportation option.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified electric transportation option' 
                means any vehicle used in any manner of transportation 
                which--
                            ``(i) the original use of which commences 
                        with the taxpayer,
                            ``(ii) is acquired for use or lease by the 
                        taxpayer and not for resale,
                            ``(iii) is capable of moving passengers, 
                        cargo, or property,
                            ``(iv) is powered by an integrated, on-
                        board electric propulsion system that--
                                    ``(I) is the primary source of 
                                propulsion,
                                    ``(II) is capable of powering the 
                                vehicle (including any of its 
                                components and accessories) for not 
                                less than \2/3\ of the maximum 
                                operating period between recharging or 
                                refueling of such vehicle, and
                                    ``(III) in the case of a vehicle 
                                which derives any of its power from the 
                                on-board combustion of a fuel, uses a 
                                renewable fuel,
                            ``(v) was manufactured for sale in 
                        commercial quantities with a reasonable 
                        expectation of profit,
                            ``(vi) is in compliance with any applicable 
                        safety or air quality standards, as determined 
                        by the Secretary in coordination with the 
                        Secretary of Transportation, the Secretary of 
                        Homeland Security, and the Administrator of the 
                        Environmental Protection Agency, and
                            ``(vii) is not a new qualified plug-in 
                        electric drive motor vehicle (as defined in 
                        subsection (d)(1)), unless the vehicle--
                                    ``(I) has a gross vehicle weight 
                                rating of not less than 3,000 pounds 
                                and not more than 14,000 pounds,
                                    ``(II) has no more than 2 seats, 
                                including the driver's seat,
                                    ``(III) uses the majority of its 
                                interior space to carry cargo,
                                    ``(IV) is primarily used for 
                                delivering commercial cargo, and
                                    ``(V) does not use any energy which 
                                is derived from the on-board combustion 
                                of a fuel.
                    ``(B) On-board electric propulsion system.--For 
                purposes of this subsection, the term `on-board 
                electric propulsion system' means--
                            ``(i) 1 or more on-board traction batteries 
                        which--
                                    ``(I) are integrated or swappable, 
                                and
                                    ``(II) have an aggregate capacity 
                                (as defined in subsection (d)(4)) of 
                                not less than 8 kilowatt hours, or
                            ``(ii) an on-board power source other than 
                        a battery with an electrical output capacity 
                        equivalent of not less than 8 kilowatt hours, 
                        as determined by the Secretary.
                    ``(C) Renewable fuel.--For purposes of this 
                paragraph, the term `renewable fuel' means any fuel at 
                least 85 percent of the volume of which consists of one 
                or more of the following:
                            ``(i) Ethanol.
                            ``(ii) Biodiesel (as defined in section 
                        40A(d)(1)).
                            ``(iii) Advanced biofuel (as defined in 
                        section 211(o)(1)(B) of the Clean Air Act (42 
                        U.S.C. 7545(o)(1)(B))).
                            ``(iv) Renewable natural gas.
                            ``(v) Hydrogen.
            ``(4) Exclusion.--For purposes of paragraph (1)(A), the 
        cost of the qualified electric transportation option shall not 
        include any cost relating to any component or feature which--
                    ``(A) is not integral to the qualified electric 
                transportation option, or
                    ``(B) does not contribute to improving the 
                efficiency or range of the electric propulsion of the 
                qualified electric transportation option.''.
    (b) Conforming Amendments.--
            (1) Section 38(b)(30) of the Internal Revenue Code of 1986 
        is amended by striking ``plug-in electric drive motor'' and 
        inserting ``electric''.
            (2) Section 48C(c)(1)(A)(i)(VI) of such Code is amended by 
        inserting ``or qualified electric transportation options'' 
        after ``new qualified plug-in electric drive motor vehicles''.
            (3) The item relating to section 30D in the table of 
        sections for subpart B of part IV of subchapter A of chapter 1 
        of such Code is amended to read as follows:

``Sec. 30D. New Qualified Electric Vehicles.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2021.

SEC. 3. CREDIT FOR QUALIFIED ELECTRIC VEHICLE RECHARGING PROPERTY.

    (a) In General.--Section 30C of the Internal Revenue Code of 1986 
is amended--
            (1) in subsection (a)--
                    (A) by inserting ``the sum of'' after ``equal to'', 
                and
                    (B) by inserting ``and the applicable percentage of 
                the cost of any qualified electric vehicle recharging 
                property'' before ``placed in service'',
            (2) in subsection (c)(2), by striking subparagraph (C),
            (3) in subsection (e)(2), by inserting ``or qualified 
        electric vehicle recharging property'' after ``qualified 
        alternative fuel vehicle refueling property'',
            (4) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively,
            (5) by inserting after subsection (e) the following:
    ``(f) Qualified Electric Vehicle Recharging Property.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified electric vehicle recharging property' means any 
        property, including any onsite component, device, or software 
        integral to its performance (with the exception of a building 
        or its structural components or any associated offsite 
        infrastructure), which satisfies applicable industry safety 
        standards and provides non-proprietary--
                    ``(A) recharging or repowering of any qualified 
                electric transportation option or new qualified plug-in 
                electric drive motor vehicle (as defined in section 
                30D), or
                    ``(B) storage and dispensing of hydrogen fuel into 
                the fuel tank of a vehicle with an on-board electric 
                propulsion system (as defined in section 30D(h)(3)(B)), 
                but only if the storage and dispensing of the fuel is 
                at the point where such fuel is delivered to the 
                vehicle.
            ``(2) Applicable percentage.--For purposes of subsection 
        (a), in the case of any qualified electric vehicle recharging 
        property, the applicable percentage shall be--
                    ``(A) in the case of any property placed in service 
                after December 31, 2021, and before January 1, 2028, 30 
                percent,
                    ``(B) in the case of any property placed in service 
                during a calendar year after 2028 and before 2033, the 
                applicable percentage determined under this paragraph 
                for the preceding calendar year, reduced by 5 
                percentage points, and
                    ``(C) in the case of any property placed in service 
                after calendar year 2032, 0 percent.
            ``(3) Termination.--For purposes of any qualified electric 
        vehicle recharging property, this section shall not apply to 
        any property placed in service after December 31, 2032.'', and
            (6) in subsection (h), as redesignated by paragraph (4)--
                    (A) in the heading, by inserting ``for Qualified 
                Alternative Fuel Vehicle Refueling Property'' after 
                ``Termination'', and
                    (B) by striking ``property'' and inserting 
                ``qualified alternative fuel vehicle refueling 
                property''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2021.

SEC. 4. LOAN GUARANTEES FOR TRANSPORTATION ELECTRIFICATION DOMESTIC 
              MANUFACTURING CAPACITY.

    Section 136 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17013) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (C), by striking the 
                        period at the end and inserting ``; and'';
                            (ii) by redesignating subparagraphs (A) 
                        through (C) as clauses (i) through (iii), 
                        respectively, and indenting appropriately;
                            (iii) in the matter preceding clause (i) 
                        (as so redesignated), by striking ``means an 
                        ultra'' and inserting the following: ``means--
                    ``(A) an ultra''; and
                            (iv) by adding at the end the following:
                    ``(B) a medium-duty vehicle or a heavy-duty vehicle 
                that exceeds 125 percent of the greenhouse gas 
                emissions and fuel efficiency standards established by 
                the final rule entitled `Greenhouse Gas Emissions and 
                Fuel Efficiency Standards for Medium- and Heavy-Duty 
                Engines and Vehicles--Phase 2' (81 Fed. Reg. 73478 
                (October 25, 2016)).'';
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), by inserting ``, 
                        qualified electric transportation options, or 
                        qualified electric vehicle recharging 
                        properties'' after ``advanced technology 
                        vehicles''; and
                            (ii) in subparagraph (B), by striking ``or 
                        advanced technology vehicles'' and inserting 
                        ``, advanced technology vehicles, qualified 
                        electric transportation options, or qualified 
                        electric vehicle recharging properties'';
                    (C) in paragraph (4), by inserting ``, qualified 
                electric transportation options, or qualified electric 
                vehicle recharging properties'' after ``advanced 
                technology vehicles'' each place it appears;
                    (D) by redesignating paragraphs (4) and (5) as 
                paragraphs (6) and (7), respectively; and
                    (E) by inserting after paragraph (3) the following:
            ``(4) Qualified electric transportation option.--The term 
        `qualified electric transportation option' has the meaning 
        given the term in section 30D(h)(3)(A) of the Internal Revenue 
        Code of 1986.
            ``(5) Qualified electric vehicle recharging property.--The 
        term `qualified electric vehicle recharging property' has the 
        meaning given the term in section 30C(f) of the Internal 
        Revenue Code of 1986.'';
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``qualified electric transportation option 
                manufacturers, qualified electric vehicle recharging 
                property manufacturers,'' before ``and component 
                suppliers'';
                    (B) in paragraph (1)--
                            (i) in subparagraph (B), by striking ``or'' 
                        at the end;
                            (ii) in subsection (C), by striking ``and'' 
                        at the end; and
                            (iii) by adding at the end the following:
                    ``(D) qualified electric transportation options; or
                    ``(E) qualified electric vehicle recharging 
                properties; and''; and
                    (C) in paragraph (2), by inserting ``qualified 
                electric transportation options, qualified electric 
                vehicle recharging properties,'' before ``and 
                qualifying components'';
            (3) in subsection (c), by striking ``December 30, 2020'' 
        each place it appears and inserting ``December 31, 2030'';
            (4) in subsection (g), in the first sentence, by inserting 
        ``, qualified electric transportation options, or qualified 
        electric vehicle recharging properties'' before the period at 
        the end;
            (5) in subsection (h)(1), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) manufactures--
                            ``(i) ultra efficient vehicles;
                            ``(ii) automobiles or components of 
                        automobiles;
                            ``(iii) qualified electric transportation 
                        options or components of qualified electric 
                        transportation options; or
                            ``(iv) qualified electric vehicle 
                        recharging properties or components of 
                        qualified electric vehicle recharging 
                        properties.''; and
            (6) in subsection (i), by striking ``fiscal years 2008 
        through 2012'' and inserting ``fiscal years 2021 through 
        2032''.
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