Electric CARS Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 1271 To amend the Internal Revenue Code of 1986 to extend certain tax credits related to electric cars, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 23, 2021 Mr. WELCH (for himself, Mr. KHANNA, Mr. TONKO, Mr. CARTWRIGHT, Mr. CONNOLLY, Mr. CLEAVER, Ms. PINGREE, Ms. SCANLON, Ms. WASSERMAN SCHULTZ, Mr. CARBAJAL, Mr. GRIJALVA, Ms. MATSUI, Mr. CASTEN, and Mr. HUFFMAN) introduced the following bill; which was re- ferred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to extend certain tax credits related to electric cars, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Electric Credit Access 4 Ready at Sale Act of 2021’’ or the ‘‘Electric CARS Act 5 of 2021’’. 6 VerDate Sep 11 2014 23:05 Mar 20, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1271.IH H1271 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1271 IH SEC. 2. EXTENSION AND MODIFICATION OF NEW QUALI- 1 FIED PLUG-IN ELECTRIC DRIVE MOTOR VEHI- 2 CLES CREDIT. 3 (a) EXTENSION.— 4 (1) IN GENERAL.—Subsection (e) of section 5 30D of the Internal Revenue Code of 1986 is 6 amended to read as follows: 7 ‘‘(e) TERMINATION.—This section shall not apply to 8 any new qualified plug-in electric drive motor vehicle 9 placed in service after December 31, 2031.’’. 10 (2) 2- AND 3-WHEELED PLUG-IN ELECTRIC VE- 11 HICLES.—Subparagraph (E) of section 30D(g)(3) of 12 such Code is amended by striking ‘‘or’’ at the end 13 of clause (i), by redesignating clause (ii) as clause 14 (iii), and by inserting after clause (i) the following 15 new clause: 16 ‘‘(ii) after December 31, 2020, and 17 before January 1, 2032, or’’. 18 (b) CREDIT MAY BE ASSIGNED TO FINANCING ENTI- 19 TY.—Section 30D(f) of the Internal Revenue Code of 20 1986 is amended by adding at the end the following new 21 paragraph: 22 ‘‘(8) CREDIT MAY BE ASSIGNED TO FINANCING 23 ENTITY.— 24 ‘‘(A) IN GENERAL.—The taxpayer to whom 25 the credit which would (but for this paragraph) 26 VerDate Sep 11 2014 23:05 Mar 20, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1271.IH H1271 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 1271 IH be allowed under subsection (a) for any taxable 1 year with respect to a vehicle may assign such 2 credit to the person who financed the purchase 3 (or lease of at least 2 years) of such vehicle. 4 Any person to whom such credit is assigned 5 under the preceding sentence shall be treated 6 for purposes of this title as the taxpayer who 7 placed such vehicle in service. 8 ‘‘(B) DISCLOSURE REQUIREMENT.—Sub- 9 paragraph (A) shall not apply with respect to 10 any vehicle unless the person to whom the cred- 11 it is assigned clearly discloses in writing to the 12 taxpayer the amount of the credit allowable 13 under subsection (a) with respect to such vehi- 14 cle (determined without regard to subsection 15 (c)).’’. 16 (c) CARRYFORWARD OF UNUSED CREDIT.—Section 17 30D of the Internal Revenue Code of 1986 is amended 18 by redesignating subsection (g) (as amended by subsection 19 (a)(2)) as subsection (h), and by inserting after subsection 20 (f) the following new subsection: 21 ‘‘(g) CARRYFORWARD OF UNUSED CREDIT.— 22 ‘‘(1) IN GENERAL.—If the credit allowable 23 under subsection (a) (after the application of sub- 24 section (e)) exceeds the limitation imposed by section 25 VerDate Sep 11 2014 23:05 Mar 20, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1271.IH H1271 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 1271 IH 26(a) for such taxable year reduced by the sum of 1 the credits allowable under this subpart (other than 2 subsection (a) of this section), such excess shall be 3 carried to the succeeding taxable year and treated as 4 a credit allowable under subsection (a) for such suc- 5 ceeding taxable year. 6 ‘‘(2) LIMITATION.—No amount of credit may 7 be carried forward under this subsection to any tax- 8 able year following the 5th taxable year after the 9 taxable year in which the credit arose. For purposes 10 of the preceding sentence, credits shall be treated as 11 used on a first-in, first-out basis.’’. 12 (d) EFFECTIVE DATES.— 13 (1) EXTENSION.—The amendments made by 14 subsection (a) shall apply to vehicles acquired after 15 December 31, 2020. 16 (2) ASSIGNMENT.—The amendments made by 17 subsection (b) shall apply to vehicles acquired more 18 than 60 days after the date of the enactment of this 19 Act. 20 (3) CARRYFORWARD.—The amendments made 21 by subsection (c) shall apply to vehicles sold after 22 the date of the enactment of this Act. 23 VerDate Sep 11 2014 23:05 Mar 20, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1271.IH H1271 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 1271 IH SEC. 3. EXTENSION OF THE ALTERNATIVE FUEL VEHICLE 1 REFUELING PROPERTY CREDIT. 2 (a) IN GENERAL.—Section 30C(g) of the Internal 3 Revenue Code of 1986 is amended by striking ‘‘2021’’ and 4 inserting ‘‘2031’’. 5 (b) EFFECTIVE DATE.—The amendment made by 6 this section shall apply to property placed in service after 7 December 31, 2021. 8 SEC. 4. EXTENSION OF THE ALTERNATIVE MOTOR VEHICLE 9 CREDIT. 10 (a) IN GENERAL.—Paragraph (1) of section 30B(k) 11 of the Internal Revenue Code of 1986 is amended by strik- 12 ing ‘‘2021’’ and inserting ‘‘2031’’. 13 (b) EFFECTIVE DATE.—The amendment made by 14 this section shall apply to property placed in service after 15 December 31, 2021. 16 Æ VerDate Sep 11 2014 23:05 Mar 20, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H1271.IH H1271 kjohnson on DSK79L0C42PROD with BILLS