FAST Electricity Act

II 117TH CONGRESS 1ST SESSION S. 1791 To amend the Internal Revenue Code of 1986 to expand existing tax credits to include non-passenger electric-powered vehicles, associated recharging and refueling infrastructure, and for other purposes. IN THE SENATE OF THE UNITED STATES MAY 24, 2021 Ms. CANTWELL introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to expand existing tax credits to include non-passenger electric-pow- ered vehicles, associated recharging and refueling infra- structure, 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 ‘‘Fueling America’s Se- 4 curity and Transportation with Electricity Act of 2021’’ 5 or the ‘‘FAST Electricity Act’’. 6 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1791 IS SEC. 2. CREDIT FOR QUALIFIED ELECTRIC TRANSPOR- 1 TATION OPTIONS. 2 (a) IN GENERAL.—Section 30D of the Internal Rev- 3 enue Code of 1986 is amended— 4 (1) in the heading, by striking ‘‘PLUG-IN 5 ELECTRIC DRIVE MOTOR’’ and inserting ‘‘ELEC- 6 TRIC’’, 7 (2) by adding at the end the following new sub- 8 section: 9 ‘‘(h) CREDIT ALLOWED FOR QUALIFIED ELECTRIC 10 TRANSPORTATION OPTIONS.— 11 ‘‘(1) IN GENERAL.—In the case of a qualified 12 electric transportation option— 13 ‘‘(A) there shall be allowed as a credit 14 against the tax imposed by this chapter for the 15 taxable year an amount equal to the applicable 16 percentage of the cost of the qualified electric 17 transportation option placed in service by the 18 taxpayer during the taxable year, 19 ‘‘(B) the amount of the credit allowed 20 under subparagraph (A) shall be treated as a 21 credit allowed under subsection (a), and 22 ‘‘(C) the requirements described in sub- 23 section (f)(7) shall not apply. 24 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1791 IS ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 1 of paragraph (1)(A), the applicable percentage shall 2 be— 3 ‘‘(A) in the case of a qualified electric 4 transportation option placed in service after De- 5 cember 31, 2021, and before January 1, 2028, 6 30 percent, 7 ‘‘(B) in the case of a qualified electric 8 transportation option placed in service during a 9 calendar year after 2027 and before 2033, the 10 applicable percentage determined under this 11 paragraph for the preceding calendar year, re- 12 duced by 5 percentage points, and 13 ‘‘(C) in the case of a qualified electric 14 transportation option placed in service after cal- 15 endar year 2032, 0 percent. 16 ‘‘(3) QUALIFIED ELECTRIC TRANSPORTATION 17 OPTION.— 18 ‘‘(A) IN GENERAL.—For purposes of this 19 subsection, the term ‘qualified electric transpor- 20 tation option’ means any vehicle used in any 21 manner of transportation which— 22 ‘‘(i) the original use of which com- 23 mences with the taxpayer, 24 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 4 •S 1791 IS ‘‘(ii) is acquired for use or lease by 1 the taxpayer and not for resale, 2 ‘‘(iii) is capable of moving passengers, 3 cargo, or property, 4 ‘‘(iv) is powered by an integrated, on- 5 board electric propulsion system that— 6 ‘‘(I) is the primary source of pro- 7 pulsion, 8 ‘‘(II) is capable of powering the 9 vehicle (including any of its compo- 10 nents and accessories) for not less 11 than 2⁄3 of the maximum operating 12 period between recharging or refueling 13 of such vehicle, and 14 ‘‘(III) in the case of a vehicle 15 which derives any of its power from 16 the on-board combustion of a fuel, 17 uses a renewable fuel, 18 ‘‘(v) was manufactured for sale in 19 commercial quantities with a reasonable 20 expectation of profit, 21 ‘‘(vi) is in compliance with any appli- 22 cable safety or air quality standards, as de- 23 termined by the Secretary in coordination 24 with the Secretary of Transportation, the 25 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 5 •S 1791 IS Secretary of Homeland Security, and the 1 Administrator of the Environmental Pro- 2 tection Agency, and 3 ‘‘(vii) is not a new qualified plug-in 4 electric drive motor vehicle (as defined in 5 subsection (d)(1)), unless the vehicle— 6 ‘‘(I) has a gross vehicle weight 7 rating of not less than 3,000 pounds 8 and not more than 14,000 pounds, 9 ‘‘(II) has no more than 2 seats, 10 including the driver’s seat, 11 ‘‘(III) uses the majority of its in- 12 terior space to carry cargo, 13 ‘‘(IV) is primarily used for deliv- 14 ering commercial cargo, and 15 ‘‘(V) does not use any energy 16 which is derived from the on-board 17 combustion of a fuel. 18 ‘‘(B) ON-BOARD ELECTRIC PROPULSION 19 SYSTEM.—For purposes of this subsection, the 20 term ‘on-board electric propulsion system’ 21 means— 22 ‘‘(i) 1 or more on-board traction bat- 23 teries which— 24 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 6 •S 1791 IS ‘‘(I) are integrated or swappable, 1 and 2 ‘‘(II) have an aggregate capacity 3 (as defined in subsection (d)(4)) of 4 not less than 8 kilowatt hours, or 5 ‘‘(ii) an on-board power source other 6 than a battery with an electrical output ca- 7 pacity equivalent of not less than 8 kilo- 8 watt hours, as determined by the Sec- 9 retary. 10 ‘‘(C) RENEWABLE FUEL.—For purposes of 11 this paragraph, the term ‘renewable fuel’ means 12 any fuel at least 85 percent of the volume of 13 which consists of one or more of the following: 14 ‘‘(i) Ethanol. 15 ‘‘(ii) Biodiesel (as defined in section 16 40A(d)(1)). 17 ‘‘(iii) Advanced biofuel (as defined in 18 section 211(o)(1)(B) of the Clean Air Act 19 (42 U.S.C. 7545(o)(1)(B))). 20 ‘‘(iv) Renewable natural gas. 21 ‘‘(v) Hydrogen. 22 ‘‘(4) EXCLUSION.—For purposes of paragraph 23 (1)(A), the cost of the qualified electric transpor- 24 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 7 •S 1791 IS tation option shall not include any cost relating to 1 any component or feature which— 2 ‘‘(A) is not integral to the qualified electric 3 transportation option, or 4 ‘‘(B) does not contribute to improving the 5 efficiency or range of the electric propulsion of 6 the qualified electric transportation option.’’. 7 (b) CONFORMING AMENDMENTS.— 8 (1) Section 38(b)(30) of the Internal Revenue 9 Code of 1986 is amended by striking ‘‘plug-in elec- 10 tric drive motor’’ and inserting ‘‘electric’’. 11 (2) Section 48C(c)(1)(A)(i)(VI) of such Code is 12 amended by inserting ‘‘or qualified electric transpor- 13 tation options’’ after ‘‘new qualified plug-in electric 14 drive motor vehicles’’. 15 (3) The item relating to section 30D in the 16 table of sections for subpart B of part IV of sub- 17 chapter A of chapter 1 of such Code is amended to 18 read as follows: 19 ‘‘Sec. 30D. New Qualified Electric Vehicles.’’. (c) EFFECTIVE DATE.—The amendments made by 20 this section shall apply to property placed in service after 21 December 31, 2021. 22 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 8 •S 1791 IS SEC. 3. CREDIT FOR QUALIFIED ELECTRIC VEHICLE RE- 1 CHARGING PROPERTY. 2 (a) IN GENERAL.—Section 30C of the Internal Rev- 3 enue Code of 1986 is amended— 4 (1) in subsection (a)— 5 (A) by inserting ‘‘the sum of’’ after ‘‘equal 6 to’’, and 7 (B) by inserting ‘‘and the applicable per- 8 centage of the cost of any qualified electric ve- 9 hicle recharging property’’ before ‘‘placed in 10 service’’, 11 (2) in subsection (c)(2), by striking subpara- 12 graph (C), 13 (3) in subsection (e)(2), by inserting ‘‘or quali- 14 fied electric vehicle recharging property’’ after 15 ‘‘qualified alternative fuel vehicle refueling prop- 16 erty’’, 17 (4) by redesignating subsections (f) and (g) as 18 subsections (g) and (h), respectively, 19 (5) by inserting after subsection (e) the fol- 20 lowing: 21 ‘‘(f) QUALIFIED ELECTRIC VEHICLE RECHARGING 22 PROPERTY.— 23 ‘‘(1) IN GENERAL.—For purposes of this sec- 24 tion, the term ‘qualified electric vehicle recharging 25 property’ means any property, including any onsite 26 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 9 •S 1791 IS component, device, or software integral to its per- 1 formance (with the exception of a building or its 2 structural components or any associated offsite in- 3 frastructure), which satisfies applicable industry 4 safety standards and provides non-proprietary— 5 ‘‘(A) recharging or repowering of any 6 qualified electric transportation option or new 7 qualified plug-in electric drive motor vehicle (as 8 defined in section 30D), or 9 ‘‘(B) storage and dispensing of hydrogen 10 fuel into the fuel tank of a vehicle with an on- 11 board electric propulsion system (as defined in 12 section 30D(h)(3)(B)), but only if the storage 13 and dispensing of the fuel is at the point where 14 such fuel is delivered to the vehicle. 15 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 16 of subsection (a), in the case of any qualified electric 17 vehicle recharging property, the applicable percent- 18 age shall be— 19 ‘‘(A) in the case of any property placed in 20 service after December 31, 2021, and before 21 January 1, 2028, 30 percent, 22 ‘‘(B) in the case of any property placed in 23 service during a calendar year after 2028 and 24 before 2033, the applicable percentage deter- 25 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 10 •S 1791 IS mined under this paragraph for the preceding 1 calendar year, reduced by 5 percentage points, 2 and 3 ‘‘(C) in the case of any property placed in 4 service after calendar year 2032, 0 percent. 5 ‘‘(3) TERMINATION.—For purposes of any 6 qualified electric vehicle recharging property, this 7 section shall not apply to any property placed in 8 service after December 31, 2032.’’, and 9 (6) in subsection (h), as redesignated by para- 10 graph (4)— 11 (A) in the heading, by inserting ‘‘FOR 12 QUALIFIED ALTERNATIVE FUEL VEHICLE RE- 13 FUELING PROPERTY’’ after ‘‘TERMINATION’’, 14 and 15 (B) by striking ‘‘property’’ and inserting 16 ‘‘qualified alternative fuel vehicle refueling 17 property’’. 18 (b) EFFECTIVE DATE.—The amendments made by 19 this section shall apply to property placed in service after 20 December 31, 2021. 21 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 11 •S 1791 IS SEC. 4. LOAN GUARANTEES FOR TRANSPORTATION ELEC- 1 TRIFICATION DOMESTIC MANUFACTURING 2 CAPACITY. 3 Section 136 of the Energy Independence and Security 4 Act of 2007 (42 U.S.C. 17013) is amended— 5 (1) in subsection (a)— 6 (A) in paragraph (1)— 7 (i) in subparagraph (C), by striking 8 the period at the end and inserting ‘‘; 9 and’’; 10 (ii) by redesignating subparagraphs 11 (A) through (C) as clauses (i) through 12 (iii), respectively, and indenting appro- 13 priately; 14 (iii) in the matter preceding clause (i) 15 (as so redesignated), by striking ‘‘means 16 an ultra’’ and inserting the following: 17 ‘‘means— 18 ‘‘(A) an ultra’’; and 19 (iv) by adding at the end the fol- 20 lowing: 21 ‘‘(B) a medium-duty vehicle or a heavy- 22 duty vehicle that exceeds 125 percent of the 23 greenhouse gas emissions and fuel efficiency 24 standards established by the final rule entitled 25 ‘Greenhouse Gas Emissions and Fuel Efficiency 26 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 12 •S 1791 IS Standards for Medium- and Heavy-Duty En- 1 gines and Vehicles—Phase 2’ (81 Fed. Reg. 2 73478 (October 25, 2016)).’’; 3 (B) in paragraph (3)— 4 (i) in subparagraph (A), by inserting 5 ‘‘, qualified electric transportation options, 6 or qualified electric vehicle recharging 7 properties’’ after ‘‘advanced technology ve- 8 hicles’’; and 9 (ii) in subparagraph (B), by striking 10 ‘‘or advanced technology vehicles’’ and in- 11 serting ‘‘, advanced technology vehicles, 12 qualified electric transportation options, or 13 qualified electric vehicle recharging prop- 14 erties’’; 15 (C) in paragraph (4), by inserting ‘‘, quali- 16 fied electric transportation options, or qualified 17 electric vehicle recharging properties’’ after 18 ‘‘advanced technology vehicles’’ each place it 19 appears; 20 (D) by redesignating paragraphs (4) and 21 (5) as paragraphs (6) and (7), respectively; and 22 (E) by inserting after paragraph (3) the 23 following: 24 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 13 •S 1791 IS ‘‘(4) QUALIFIED ELECTRIC TRANSPORTATION 1 OPTION.—The term ‘qualified electric transportation 2 option’ has the meaning given the term in section 3 30D(h)(3)(A) of the Internal Revenue Code of 1986. 4 ‘‘(5) QUALIFIED ELECTRIC VEHICLE RE- 5 CHARGING PROPERTY.—The term ‘qualified electric 6 vehicle recharging property’ has the meaning given 7 the term in section 30C(f) of the Internal Revenue 8 Code of 1986.’’; 9 (2) in subsection (b)— 10 (A) in the matter preceding paragraph (1), 11 by inserting ‘‘qualified electric transportation 12 option manufacturers, qualified electric vehicle 13 recharging property manufacturers,’’ before 14 ‘‘and component suppliers’’; 15 (B) in paragraph (1)— 16 (i) in subparagraph (B), by striking 17 ‘‘or’’ at the end; 18 (ii) in subsection (C), by striking 19 ‘‘and’’ at the end; and 20 (iii) by adding at the end the fol- 21 lowing: 22 ‘‘(D) qualified electric transportation op- 23 tions; or 24 VerDate Sep 11 2014 04:29 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S1791.IS S1791 kjohnson on DSK79L0C42PROD with BILLS 14 •S 1791 IS ‘‘(E) qualified electric vehicle recharging 1 properties; and’’; and 2 (C) in paragraph (2), by inserting ‘‘quali- 3 fied electric transportation options, qualified 4 electric vehicle recharging properties,’’ before [Text truncated for display. 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