Green Bus Tax Credit Act of 2021
Bill: S.494 | Sponsor: Sen. Cortez Masto, Catherine (D-NV)
Policy area: Taxation

Summary:
Green Bus Tax Credit Act of 2021
This bill allows a manufacturer a zero-emission bus tax credit through 2026.
The credit is equal to 10% of the sales price of a zero-emission bus. The credit only applies to the first $1 million of a vehicle's sales price and to buses used primarily in the United States and its possessions.
The bill defines zero-emission bus as a motor vehicle that has a gross vehicle weight rating of not less than 14,000 pounds, is not powered or charged by an internal combustion engine, is propelled solely by an electric motor that draws electricity from a battery or fuel cell, is designed to carry 15 or more passengers, and satisfies Buy America requirements.

To amend the Internal Revenue Code of 1986 to provide for a credit for 
                          zero-emission buses.

    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 ``Green Bus Tax Credit Act of 2021''.

SEC. 2. CREDIT FOR ZERO-EMISSION BUSES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45U. ZERO-EMISSION BUS CREDIT.

    ``(a) Allowance of Credit.--For purposes of section 38, in the case 
of a manufacturer of a zero-emission bus, the zero-emission bus credit 
determined under this section for a taxable year is an amount equal to 
10 percent of the sum of the sale price of each zero-emission bus sold 
by such taxpayer during such taxable year.
    ``(b) Limitation.--The sale price of a zero-emission bus may not be 
taken into account under subsection (a) to the extent such price 
exceeds $1,000,000.
    ``(c) Zero-Emission Bus.--For purposes of this section--
            ``(1) In general.--The term `zero-emission bus' means a 
        motor vehicle which--
                    ``(A) has a gross vehicle weight rating of not less 
                than 14,000 pounds,
                    ``(B) is not powered or charged by an internal 
                combustion engine,
                    ``(C) is propelled solely by an electric motor 
                which draws electricity from a battery or fuel cell,
                    ``(D) is designed to carry 15 or more passengers, 
                and
                    ``(E) satisfies the requirements established under 
                section 5323(j) of title 49, United States Code.
            ``(2) Motor vehicle; manufacturer.--The term `motor 
        vehicle' and `manufacturer' have the meaning given such terms 
        in paragraphs (2) and (3) of section 30D(d), respectively.
    ``(d) Special Rules.--
            ``(1) Sale price.--For purposes of this section, the sale 
        price of a zero-emission bus shall be reduced by any rebate or 
        other incentive given before, on, or after the date of the 
        sale.
            ``(2) Domestic use.--No credit shall be allowed under 
        subsection (a) with respect to a zero-emission bus to a 
        manufacturer who knows or has reason to know that such vehicle 
        will not be used primarily in the United States or a possession 
        of the United States.
            ``(3) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary or appropriate to carry out the 
        purposes of this section, including procedures for 
        manufacturers to certify compliance with the requirements under 
        subsection (c)(1)(E) and to conduct audits with respect to 
        vehicles for which a credit is allowed under this section to 
        ensure such requirements have been satisfied.
    ``(e) Termination.--This section shall not apply to sales after 
December 31, 2026.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of such Code is amended by striking ``plus'' at the end of 
paragraph (32), by striking the period at the end of paragraph (33) and 
inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(34) the zero-emission bus credit determined under 
        section 45U.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45U. Zero-emission bus credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to sales after the date of the enactment of this Act.
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