Affordable EVs for Working Families Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 5161 To amend the Internal Revenue Code of 1986 to provide a credit for previously-owned qualified plug-in electric drive motor vehicles. IN THE HOUSE OF REPRESENTATIVES NOVEMBER 19, 2019 Mr. GOMEZ (for himself, Mr. BLUMENAUER, Ms. DELBENE, Mr. SUOZZI, Ms. MOORE, Mr. PANETTA, Mr. EVANS, Mr. BEYER, and Ms. SA´NCHEZ) in- troduced 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 credit for previously-owned qualified plug-in electric drive motor vehicles. 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 ‘‘Affordable EVs for 4 Working Families Act of 2019’’. 5 SEC. 2. CREDIT FOR PREVIOUSLY-OWNED QUALIFIED 6 PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. 7 (a) IN GENERAL.—Subpart A of part IV of sub- 8 chapter A of chapter 1 of the Internal Revenue Code of 9 VerDate Sep 11 2014 04:06 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5161.IH H5161 kjohnson on DSK79L0C42 with BILLS 2 •HR 5161 IH 1986 is amended by inserting after section 25D the fol- 1 lowing new section: 2 ‘‘SEC. 25E. PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELEC- 3 TRIC DRIVE MOTOR VEHICLES. 4 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a 5 qualified buyer who during a taxable year places in service 6 a previously-owned qualified plug-in electric drive motor 7 vehicle, there shall be allowed as a credit against the tax 8 imposed by this chapter for the taxable year an amount 9 equal to the sum of— 10 ‘‘(1) $1,250, plus 11 ‘‘(2) in the case of a vehicle which draws pro- 12 pulsion energy from a battery which exceeds 4 kilo- 13 watt hours of capacity (determined at the time of 14 sale), the lesser of— 15 ‘‘(A) $1,250, and 16 ‘‘(B) the product of $208.50 and such ex- 17 cess kilowatt hours. 18 ‘‘(b) LIMITATIONS.— 19 ‘‘(1) SALE PRICE.—The credit allowed under 20 subsection (a) with respect to sale of a vehicle shall 21 not exceed 30 percent of the sale price. 22 ‘‘(2) ADJUSTED GROSS INCOME.—The amount 23 which would (but for this paragraph) be allowed as 24 a credit under subsection (a) shall be reduced (but 25 VerDate Sep 11 2014 04:06 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5161.IH H5161 kjohnson on DSK79L0C42 with BILLS 3 •HR 5161 IH not below zero) by $250 for each $1,000 (or fraction 1 thereof) by which the taxpayer’s adjusted gross in- 2 come exceeds $30,000 (twice such amount in the 3 case of a joint return). 4 ‘‘(c) DEFINITIONS.—For purposes of this section— 5 ‘‘(1) PREVIOUSLY-OWNED QUALIFIED PLUG-IN 6 ELECTRIC DRIVE MOTOR VEHICLE.—The term ‘pre- 7 viously-owned qualified plug-in electric drive motor 8 vehicle’ means, with respect to a taxpayer, a motor 9 vehicle— 10 ‘‘(A) the model year of which is at least 2 11 earlier than the calendar year in which the tax- 12 payer acquires such vehicle, 13 ‘‘(B) the original use of which commences 14 with a person other than the taxpayer, 15 ‘‘(C) which is acquired by the taxpayer in 16 a qualified sale, 17 ‘‘(D) registered by the taxpayer for oper- 18 ation in a State or possession of the United 19 States, and 20 ‘‘(E) which meets the requirements of sub- 21 paragraphs (C), (D), (E), and (F) of section 22 30D(d)(1). 23 ‘‘(2) QUALIFIED SALE.—The term ‘qualified 24 sale’ means a sale of a motor vehicle— 25 VerDate Sep 11 2014 04:06 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5161.IH H5161 kjohnson on DSK79L0C42 with BILLS 4 •HR 5161 IH ‘‘(A) by a person who holds such vehicle in 1 inventory (within the meaning of section 471) 2 for sale or lease, 3 ‘‘(B) for a sale price of less than $25,000, 4 and 5 ‘‘(C) which is the first transfer since the 6 date of the enactment of this section to a per- 7 son other than the person with whom the origi- 8 nal use of such vehicle commenced. 9 ‘‘(3) QUALIFIED BUYER.—The term ‘qualified 10 buyer’ means, with respect to a sale of a motor vehi- 11 cle, a taxpayer— 12 ‘‘(A) who is an individual, 13 ‘‘(B) who purchases such vehicle for use 14 and not for resale, 15 ‘‘(C) with respect to whom no deduction is 16 allowable with respect to another taxpayer 17 under section 151, 18 ‘‘(D) who has not been allowed a credit 19 under this section for any sale during the 3- 20 year period ending on the date of the sale of 21 such vehicle, and 22 ‘‘(E) who possesses a certificate issued by 23 the seller that certifies— 24 VerDate Sep 11 2014 04:06 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5161.IH H5161 kjohnson on DSK79L0C42 with BILLS 5 •HR 5161 IH ‘‘(i) that the vehicle is a previously- 1 owned qualified plug-in electric drive motor 2 vehicle, 3 ‘‘(ii) the capacity of the battery at 4 time of sale, and 5 ‘‘(iii) such other information as the 6 Secretary may require. 7 ‘‘(4) MOTOR VEHICLE; CAPACITY.—The terms 8 ‘motor vehicle’ and ‘capacity’ have the meaning 9 given such terms in paragraphs (2) and (4) of sec- 10 tion 30D(d), respectively. 11 ‘‘(d) APPLICATION OF CERTAIN RULES.—For pur- 12 poses of this section, rules similar to the rules of para- 13 graphs (1), (2), (4), (5), (6), and (7) of section 30D(f) 14 shall apply for purposes of this section. 15 ‘‘(e) CERTIFICATE SUBMISSION REQUIREMENT.— 16 The Secretary may require that the issuer of the certifi- 17 cate described in subsection (c)(3)(E) submit such certifi- 18 cate to the Secretary at the time and in the manner re- 19 quired by the Secretary. 20 ‘‘(f) TERMINATION.—No credit shall be allowed 21 under this section with respect to sales after December 22 31, 2024.’’. 23 (b) CLERICAL AMENDMENT.—The table of sections 24 for subpart A of part IV of subchapter A of chapter 1 25 VerDate Sep 11 2014 21:37 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5161.IH H5161 kjohnson on DSK79L0C42 with BILLS 6 •HR 5161 IH of such Code is amended by inserting after the item relat- 1 ing to section 25D the following new item: 2 ‘‘Sec. 25E. Previously-owned qualified plug-in electric drive motor vehicles.’’. (c) EFFECTIVE DATE.—The amendments made by 3 this section shall apply to sales after the date of the enact- 4 ment of this Act. 5 Æ VerDate Sep 11 2014 04:06 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H5161.IH H5161 kjohnson on DSK79L0C42 with BILLS