Detailed Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Q: SECTION 1. FINDINGS.

The Congress makes the following findings:
(1) Ensuring secure access to energy is in the highest
national security interests of the United States.
(2) Without secure access to oil supplies, the United
States economy, which depends heavily on oil for
transportation, could be severely affected. Two-thirds of the
oil used in the United States is consumed by the transportation
sector.
(3) In 1973 OPEC placed an embargo on sales of oil to the
United States, creating severe oil shortages and driving up oil
prices in the United States. OPEC's action was a major factor
in the recession which followed shortly thereafter.
(4) Under the ''Carter Doctrine'', announced by President
Carter in 1980, ''An attempt by any outside forces to gain
control of the Persian Gulf region will be regarded as an
assault on the vital interests of the United States of America,
and such an assault will be repelled by any means necessary,
including military force.''.
(5) Following the Iraqi invasion of Kuwait in 1990, the
United States sent more than 500,000 troops to the Persian Gulf
to expel the Iraqi troops, liberate Kuwait, protect Saudi
Arabia, and ensure access to Persian Gulf oil.
(6) Many major oil producing nations do not share United
States values of democracy, freedom of expression, thought, and
religion, and equality for women.
(7) During the Afghanistan conflict and the war on
terrorism, many oil producing nations did not openly support
the United States campaign to end the terror, and many of the
terrorists of September 11 came from major OPEC nations.
(8) It is in the highest national security interests of the
United States to substantially reduce our dependence on oil as
soon as possible, to secure our access to oil supplies, and to
reduce our dependence on nations which do not share our
interests and values.
(9) Because most oil is consumed by the transportation
sector, reduction of our dependence on oil can only come from
major increases in fuel efficiency in cars, sport utility
vehicles, light trucks, and other vehicles.

SEC. 2. FUEL EFFICIENCY VEHICLE CREDIT.

(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to foreign tax credit,
etc.) is amended by adding at the end the following:

''SEC. 30B. FUEL EFFICIENCY VEHICLE CREDIT.

''(a) Allowance of Credit.--
''(1) Fuel economy not less than 40 miles per gallon.--At
the election of the taxpayer, there shall be allowed as a
credit against the tax imposed by this chapter for the taxable
year an amount equal to 25 percent of the cost of any qualified
fuel-effi cient vehicle placed in service by the taxpayer
during the taxable year.
''(2) Fuel economy not less than 50 miles per gallon.--In
the case of a qualified fuel-efficient vehicle in which the
fuel economy (within the meaning of subsection (c)(1)) is not
less than 50 miles per gallon--
''(A) paragraph (1) shall be applied by
substituting '35 percent' for '25 percent', and
''(B) subsection (b) shall be applied by
substituting '$6,000' for $5,000'.
''(b) Limitation.--The amount of the credit allowed by subsection
(a) shall not exceed $5,000.
''(c) Qualified Fuel-Efficient Vehicle.--For purposes of this
section, the term 'qualified fuel-efficient vehicle' means a motor
vehicle (as defined in section 30(c)(2))--
''(1) in which the fuel economy (determined in accordance
with section 4064) of such vehicle is rated at not less than 40
miles per gallon,
''(2) which is--
''(A) an automobile (as defined in section
4064(b)), or
''(B) a truck or van with an unloaded gross vehicle
weight rating not greater than 7,500 pounds, and
''(3) which has received a certificate that such vehicle
meets or exceeds the Bin 5 Tier II emission level established
in regulations prescribed by the Administrator of the
Environmental Protection Agency under section 202(i) of the
Clean Air Act for that make and model year vehicle.
''(d) Special Rules.--
''(1) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced by
the amount of such credit.
''(2) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which ceases
to be property eligible for such credit.
''(3) Property used outside united states, etc. not
qualified.--No credit shall be allowed under subsection (a)
with respect to any property referred to in section 50(b) or
with respect to the portion of the cost of any property taken
into account under section 30, 179, or 179A.
''(e) Carryforward of Unused Credits.--If the credit allowable
under subsection (a) for any taxable year exceeds--
''(1) the regular tax for the taxable year reduced by the
sum of the credits allowable under subpart A and this part
(other than this section), over
''(2) the tentative minimum tax for the taxable year,
such excess shall be carried to the succeeding taxable year and added
to the credit allowable under subsection (a) for such taxable year.''.
(b) Clerical Amendment.--The table of sections for such subpart B
is amended by inserting after the item relating to section 30A the
following new item:

''Sec. 30B. Fuel-efficiency vehicle
credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.

SEC. 3. FUEL EFFICIENT VEHICLE ASSEMBLY CREDIT.

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

''SEC. 45G. FUEL-EFFICIENT VEHICLE ASSEMBLY CREDIT.

''(a) General Rule.--For purposes of section 38, the fuel-efficient
vehicle assembly credit determined under this section for the taxable
year is an amount equal to the product of $2,000 and the number of
qualified fuel-efficient vehicles manufactured or produced in the
United States by the taxpayer during the taxable year for their 1st
retail sale.
''(b) Qualified Fuel-Efficient Vehicle.--For purposes of subsection
(a), the term 'qualified fuel-efficient vehicle' has the meaning given
to such term by section 30B(c).
''(c) 1st Retail Sale.--For purposes of subsection (a), the term
'1st retail sale' has the meaning given to such term by section
4002.''.
(b) Credit To Be Part of General Business Credit.--Subsection (b)
of section 38 of such Code (relating to general business credit) is
amended by striking ''plus'' at the end of paragraph (14), by striking
the period at the end of paragraph (15) and inserting '', plus'', and
by adding at the end the following new paragraph:
''(16) the fuel-efficient vehicle assembly credit
determined under section 45G(a).''.
(c) Conforming Amendment.--The table of sections for subpart D 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 45F the
following new item:

''Sec. 45G. Fuel-efficient vehicle
assembly credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.

SEC. 4. LOAN GUARANTEES.

(a) General Authority.--The Secretary of Energy may provide loan
guarantees to manufacturers of motor vehicles or of motor vehicle
engines for the purposes described in subsection (b).
(b) Eligible Purposes.--Loans guaranteed under this section shall
be used for the costs of conversion from the manufacture of motor
vehicles or engines achieving less than 40 miles per gallon of gasoline
to the manufacture of motor vehicles or engines achieving more than 40
miles per gallon of gasoline. Such loans may not be used for
advertising or promotional costs.
(c) Aggregate Amount of Loan Guarantees.--The aggregate amount of
loans that may be guaranteed under this section at any one time shall
not exceed $1,000,000,000.
(d) Limitation on Loan Guarantee Size.--The Secretary shall not
guarantee a loan under this section for an amount greater than
$100,000,000.
(e) Rates of Interest.--The Secretary shall not make a loan
guarantee under this section if the interest rate for the loan exceeds
that which the Secretary determines to be reasonable, taking into
consideration the prevailing interest rates and customary fees incurred
under similar obligations in the private capital market.
(f) Ability To Repay.--The Secretary shall not make a loan
guarantee under this section unless the Secretary has made a finding in
writing that the recipient of the loan is likely to be able to repay
the loan according to its terms.
(g) Applications.--The Secretary shall prescribe the form and
contents required of applications for assistance under this section, to
enable the Secretary to determine the eligibility of the applicant's
proposal, and shall establish terms and conditions for loan guarantees
made under this section.
(h) Full Faith and Credit.--All guarantees entered into by the
Secretary under this section shall constitute general obligations of
the United States backed by the full faith and credit of the United
States.
(i) Modifications.--The Secretary may approve the modification of
any term or condition of a loan guarantee or loan guarantee commitment,
including the rate of interest, time of payment of interest or
principal, or security requirements, if the Secretary finds in writing
that--
(1) the modification is equitable and is in the overall
best interests of the United States; and
(2) consent has been obtained from the applicant and the
holder of the obligation.
(j) Default.--The Secretary shall prescribe regulations setting
forth procedures in the event of default on a loan guaranteed under
this section. The Secretary shall ensure that each loan guarantee made
under this section contains terms and conditions that provide that--
(1) if a payment of principal or interest under the loan is
in default for more than 30 days, the Secretary shall pay to
the holder of the obligation, or the holder's agent, the amount
of unpaid guaranteed interest;
(2) if the default has continued for more than 90 days, the
Secretary shall pay to the holder of the obligation, or the
holder's agent, 90 percent of the unpaid guaranteed principal;
(3) after final resolution of the default, through
liquidation or otherwise, the Secretary shall pay to the holder
of the obligation, or the holder's agent, any remaining amounts
guaranteed but which were not recovered through the default's
resolution;
(4) the Secretary shall not be required to make any payment
under paragraphs (1) through (3) if the Secretary finds, before
the expiration of the periods described in such paragraphs,
that the default has been remedied; and
(5) the holder of the obligation shall not receive payment
or be entitled to retain payment in a total amount which,
together with all other recoveries (including any recovery
based upon a security interest in equipment or facilities)
exceeds the actual loss of such holder.
(k) Rights of the Secretary.--
(1) Subrogation.--If the Secretary makes payment to a
holder, or a holder's agent, under subsection (j) in connection
with a loan guarantee made under this section, the Secretary
shall be subrogated to all of the rights of the holder with
respect to the obligor under the loan.
(2) Disposition of property.--The Secretary may complete,
recondition, reconstruct, renovate, repair, maintain, operate,
charter, rent, sell, or otherwise dispose of any property or
other interests obtained pursuant to this section. The
Secretary shall not be subject to any Federal or State
regulatory requirements when carrying out this paragraph.
(l) Action Against Obligor.--The Secretary may bring a civil action
in an appropriate Federal court in the name of the holder of the
obligation in the event of a default on a loan guaranteed under this
section. The holder of a guarantee shall make available to the
Secretary all records and evidence necessary to prosecute the civil
action. The Secretary may accept property in full or partial
satisfaction of any sums owed as a result of a default. If the
Secretary receives, through the sale or other disposition of such
property, an amount greater than the aggregate of--
(1) the amount paid to the holder of a guarantee under
subsection (j); and
(2) any other cost to the United States of remedying the
default,
the Secretary shall pay such excess to the obligor.
(m) Breach of Conditions.--The Attorney General shall commence a
civil action in an appropriate Federal court to enjoin any activity
which the Secretary finds is in violation of this section, regulations
issued hereunder, or any conditions which were duly agreed to, and to
secure any other appropriate relief.
(n) Attachment.--No attachment or execution may be issued against
the Secretary, or any property in the control of the Secretary, prior
to the entry of final judgment to such effect in any State, Federal, or
other court.
(o) Investigation Charge.--The Secretary may charge and collect
from each applicant a reasonable charge for appraisal of the value of
the equipment or facilities for which the loan guarantee is sought, and
for making necessary determinations and findings. Such charge shall not
aggregate more than one-half of 1 percent of the principal amount of
the obligation.
(p) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy for carrying out this section
such sums as may be necessary for fiscal years 2006 through 2010.
(q) Definitions.--For purposes of this section:
(1) The term ''loan guarantee'' means any guarantee,
insurance, or other pledge with respect to the payment of all
or a part of the principal or interest on any debt obligation
of a non-Federal borrower to a non-Federal lender, but does not
include the insurance of deposits, shares, or other
withdrawable accounts in financial institutions.
(2) The term ''loan guarantee commitment'' means a binding
agreement by the Secretary of Energy to make a loan guarantee
when specified conditions are fulfilled by the borrower, the
lender, or any other party to the guarantee agreement.
(3) The term ''modification'' means any Government action
that alters the estimated cost of an outstanding loan guarantee
(or loan guarantee commitment) from the current estimate of
cash flows. This includes the sale of loan assets, with or
without recourse, and the purchase of guaranteed loans. This
also includes any action resulting from new legislation, or
from the exercise of administrative discretion under existing
law, that directly or indirectly alters the estimated cost of
outstanding loan guarantees (or loan guarantee commitments)
such as a change in collection procedures.

SEC. 5. PERMANENT EXTENSION OF RESEARCH
CREDIT.

(a) In General.--Section 41 of the Internal Revenue Code of 1986
(relating to credit for increasing research activities) is amended by
striking subsection (h).
(b) Conforming Amendment.--Paragraph (1) of section 45C(b) of such
Code is amended by striking subparagraph (D).
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act.

SEC. 6. INCREASE IN RATES OF ALTERNATIVE INCREMENTAL CREDIT.

(a) In General.--Subparagraph (A) of section 41(c)(4) of the
Internal Revenue Code of 1986 (relating to election of alternative
incremental credit) is amended--
(1) by striking ''2.65 percent'' and inserting ''3
percent'',
(2) by striking ''3.2 percent'' and inserting ''4
percent'', and
(3) by striking ''3.75 percent'' and inserting ''5
percent''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.

SEC. 7. EXCLUSION OF QUALIFIED FUEL-EFFICIENT VEHICLES FROM CALCULATION
OF AVERAGE FUEL ECONOMY OF A MANUFACTURER.

Section 32904(a) of title 49, United States Code, is amended by
adding at the end the following:
''(3) In calculating the average fuel economy of a manufacturer
under paragraph (1), the Administrator shall not consider any
automobile manufactured by the manufacturer for which a credit is
allowed under section 38(a)(16) of the Internal Revenue Code of
1986.''.
A:
Amends the Internal Revenue Code to: (1) allow a tax credit for 25 percent of the cost of certain automobiles, trucks, or vans with fuel efficiency ratings of not less than 40 miles per gallon (35 percent for ratings of not less than 50 miles per gallon); (2) allow a business tax credit for the manufacture or production in the United States of qualified fuel-efficient automobiles for first retail sale; (3) make permanent the tax credit for increasing research activities; and (4) increase the rates of the alternative incremental tax credit for research activities.

Authorizes the Secretary of Energy to provide loan guarantees up to $100 million per loan (up to $1 billion aggregate) to automobile manufacturers for the cost of converting to automobiles with a fuel efficiency rating of more than 40 miles per gallon.

Prohibits the Administrator of the Environmental Protection Agency (EPA) from considering any automobile allowed a fuel-efficiency tax credit under this Act in calculating the average fuel economy of a manufacturer.