USER FEE Act
Bill: H.R.4016 | Sponsor: Rep. Smucker, Lloyd (R-PA)
Policy area: Taxation

Summary:
Using Sustainable Energy Resources to Fund Equitable e-Transportation Act or the USER FEE Act

To amend the Internal Revenue Code of 1986 to impose a tax on the use 
  of certain electric highway vehicles to fund the Highway Trust Fund.

    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 ``Using Sustainable Energy Resources 
to Fund Equitable e-Transportation Act'' or as the ``USER FEE Act''.

SEC. 2. TAX ON USE OF CERTAIN ELECTRIC HIGHWAY VEHICLES TO FUND THE 
              HIGHWAY TRUST FUND.

    (a) Imposition of Tax.--Chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after subchapter V the following new 
subchapter:

        ``Subchapter W--Use of Certain Electric Highway Vehicles

``SEC. 1400W-1. USE OF CERTAIN ELECTRIC HIGHWAY VEHICLES.

    ``(a) In General.--In the case of any person who uses any specified 
electric highway vehicle during the taxable year, the tax imposed by 
this chapter shall be increased with respect to each such vehicle by 
the product of--
            ``(1) the applicable rate of tax, multiplied by
            ``(2) the applicable mileage.
    ``(b) Applicable Rate of Tax.--For purposes of this section, the 
term `applicable rate of tax' means--
            ``(1) in the case of any plug-in hybrid vehicle, 1 cent, 
        and
            ``(2) in the date of any other specified electric highway 
        vehicle, 2 cents.
    ``(c) Applicable Mileage.--For purposes of this section--
            ``(1) In general.--Except as provided in paragraph (2), the 
        term `applicable mileage' means, with respect to any taxable 
        year beginning in any calendar year, the average number of 
        miles driven by highway vehicles in the United States during 
        the second preceding calendar year, as estimated by the 
        Secretary after consultation with the Secretary of 
        Transportation.
            ``(2) Election to use actual mileage.--In the case of a 
        taxpayer which elects the application of this paragraph with 
        respect to any vehicle for any taxable year, the applicable 
        mileage with respect to such vehicle shall be the number of 
        miles driven by such vehicle during such taxable year if the 
        taxpayer provides or maintains such documentation as the 
        Secretary may require.
    ``(d) Electric Vehicle Definitions.--For purposes of this section--
            ``(1) Specified electric highway vehicle.--The term 
        `specified electric highway vehicle' means any highway motor 
        vehicle (as defined in section 4482(a)) which is propelled to a 
        significant extent by an electric motor which draws electricity 
        from a battery which--
                    ``(A) has a capacity of not less than 4 kilowatt 
                hours, and
                    ``(B) is capable of being recharged from an 
                external source of electricity.
            ``(2) Plug-in hybrid vehicle.--The term `plug-in hybrid 
        vehicle' means any specified electric highway vehicle which 
        includes an internal combustion engine which is capable of 
        recharging the battery described in paragraph (1).
    ``(e) Rules Related to Use.--
            ``(1) Ownership treated as use.--Except as otherwise 
        provided by the Secretary, the registered owner of any 
        specified electric highway vehicle shall be treated for 
        purposes of this section as the user of such vehicle.
            ``(2) Proration.--In the case of any person who 
        demonstrates to the Secretary in such manner as the Secretary 
        may provide that such person was not the registered owner of 
        such vehicle for any portion of the taxable year, the tax 
        determined under subsection (a) shall bear the same ratio to 
        such tax (determined without regard to this paragraph) as--
                    ``(A) the portion of such taxable year for which 
                such person was the registered owner of such vehicle, 
                bears to
                    ``(B) the entire taxable year.
    ``(f) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after December 31, 2022, the 1 cent amount in 
        subsection (b)(1) and the 2 cents amount in subsection (b)(2) 
        shall each be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `2021' for `2016' in subparagraph (A)(ii) thereof.
            ``(2) Rounding.--Any increase determined under paragraph 
        (1) shall be rounded to the nearest multiple of 0.1 cents.
    ``(g) Authority To Enter Into Information and Revenue Sharing 
Agreements.--The Secretary may enter into an agreement with any State 
under which--
            ``(1) such State provides the Secretary such information as 
        is identified in such agreement as information which the 
        Secretary has determined would aid in the administration and 
        enforcement of this section, and
            ``(2) the Secretary agrees to make payments to such State 
        of a portion of the revenue collected under this section.''.
    (b) Certain Income Tax Credits Not Allowed To Offset Tax.--Section 
26(b)(2) of such Code is amended by striking ``and'' at the end of 
subparagraph (X), by striking the period at the end of subparagraph 
(Y), and by adding at the end the following new subparagraph:
                    ``(Z) section 1400W-1 (relating to use of certain 
                electric highway vehicles).''.
    (c) Transfers to Highway Trust Fund.--Section 9503(b)(1) of such 
Code is amended by striking ``and'' at the end of subparagraph (D), by 
striking the period at the end of subparagraph (E) and inserting ``, 
and'', and by inserting after subparagraph (E) the following new 
subparagraph:
                    ``(F) section 1400W-1 (relating to use of certain 
                electric highway vehicles), determined after 
                application of subsection (f)(2) thereof.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.
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