Michael F. Donoughe Tax Credit for Off Road Electric Vehicles Act

Bill: 118-hr-5656
Sponsor: full_name: Rep. Phillips, Dean [D-MN-3]
Introduced: 2023-09-21
Policy area: Taxation
Latest action: action_date: 2023-09-21
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2023-09-21
action_desc: Introduced in House
text: <p><strong>Michael F. Donoughe Tax Credit for Off Road Electric Vehicles Act </strong></p><p>This bill expands the clean vehicle tax credit to include new qualified off-road plug-in electric vehicles. The amount of the tax credit allowed for a new qualified off-road plug-in electric vehicle is 10% of the cost of the vehicle or $2,500,&nbsp;whichever is lower.</p><p>The bill defines a <em>new qualified off-road plug-in electric vehicle</em> as any vehicle that</p><ul><li>is acquired new and for use by the taxpayer;</li><li>is made by a qualified manufacturer;</li><li>is powered by an electric motor that draws electricity from a battery with a capacity of at least six&nbsp; kilowatt hours;</li><li>has final assembly occurring in North America;</li><li>has a dry weight of less than 3,500 pounds;</li><li>has three or more wheels;</li><li>has one or more seats;</li><li>is manufactured primarily for off-road use;</li><li>is designed for use on rough terrain&nbsp;and, except in the case of a vehicle designed to operate on land and water, is not designed to operate on rails, in the air, or in or on the water; and</li><li>is capable of reaching a speed of 40 miles per hour.</li></ul><p>Under current law, a <em>qualified manufacturer</em> is any manufacturer that has a written agreement with the Internal Revenue Service and submits reports containing information about each eligible clean vehicle.</p><p>Finally, the bill allows the tax credit for a new qualified off-road plug-in electric vehicle to be transferred from the taxpayer to an eligible entity (e.g., vehicle dealer) in exchange for a financial benefit (e.g., rebate).</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 5656 IN THE HOUSE OF REPRESENTATIVES September 21, 2023 Mr. Phillips introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide a tax credit for new off-road plug-in electric vehicles.

1. Short title This Act may be cited as the Michael F. Donoughe Tax Credit for Off Road Electric Vehicles Act . 2. Credit for new off-road plug-in electric vehicles (a) In general Section 30D of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i), and by inserting after subsection (g) the following new subsection: (h) Credit allowed for new off-Road plug-In electric vehicles (1) In general In the case of any new qualified off-road plug-in electric vehicle— (A) there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the applicable amount with respect to each such new qualified off-road plug-in electric vehicle placed in service by the taxpayer during the taxable year, and (B) the amount of the credit allowed under subparagraph (A) shall be treated as a credit allowed under subsection (a). (2) Applicable amount For purposes of paragraph (1), the applicable amount is an amount equal to the lesser of— (A) 10 percent of the cost of the new qualified off-road plug-in electric vehicle, or (B) $2,500. (3) New qualified off-road plug-in electric vehicle For purposes of this subsection, the term new qualified off-road plug-in electric vehicle means any vehicle which— (A) meets the requirements of subparagraphs (A), (B), (C), (F), (G), and (H) of subsection (d)(1) (determined by substituting 6 kilowatt hours for 7 kilowatt hours in subparagraph (F)(i)), (B) has a dry weight of less than 3,500 pounds, (C) has 3 or more wheels and 1 or more seats, (D) is manufactured primarily for use on other than public streets, roads, and highways, (E) is designed to be used primarily on rough terrain, (F) is capable of achieving a speed of 40 miles per hour, and (G) except in the case of a vehicle designed to operate on land and water, is not designed to operate on rails, in the air, or in or on the water. . (b) One credit per vehicle Section 30D(f)(8) of such Code is amended by striking described in subsection (a) and inserting under this section . (c) Transfer of credit Section 30D(g)(1) of such Code is amended by inserting or new qualified off-road plug-in electric vehicle after new clean vehicle . (d) Effective date The amendments made by this section shall apply to vehicles acquired after December 31, 2023.