[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1271 Introduced in House (IH)]

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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 referred 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Electric Credit Access Ready at Sale 
Act of 2021'' or the ``Electric CARS Act of 2021''.

SEC. 2. EXTENSION AND MODIFICATION OF NEW QUALIFIED PLUG-IN ELECTRIC 
              DRIVE MOTOR VEHICLES CREDIT.

    (a) Extension.--
            (1) In general.--Subsection (e) of section 30D of the 
        Internal Revenue Code of 1986 is amended to read as follows:
    ``(e) Termination.--This section shall not apply to any new 
qualified plug-in electric drive motor vehicle placed in service after 
December 31, 2031.''.
            (2) 2- and 3-wheeled plug-in electric vehicles.--
        Subparagraph (E) of section 30D(g)(3) of such Code is amended 
        by striking ``or'' at the end of clause (i), by redesignating 
        clause (ii) as clause (iii), and by inserting after clause (i) 
        the following new clause:
                            ``(ii) after December 31, 2020, and before 
                        January 1, 2032, or''.
    (b) Credit May Be Assigned to Financing Entity.--Section 30D(f) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(8) Credit may be assigned to financing entity.--
                    ``(A) In general.--The taxpayer to whom the credit 
                which would (but for this paragraph) be allowed under 
                subsection (a) for any taxable year with respect to a 
                vehicle may assign such credit to the person who 
                financed the purchase (or lease of at least 2 years) of 
                such vehicle. Any person to whom such credit is 
                assigned under the preceding sentence shall be treated 
                for purposes of this title as the taxpayer who placed 
                such vehicle in service.
                    ``(B) Disclosure requirement.--Subparagraph (A) 
                shall not apply with respect to any vehicle unless the 
                person to whom the credit is assigned clearly discloses 
                in writing to the taxpayer the amount of the credit 
                allowable under subsection (a) with respect to such 
                vehicle (determined without regard to subsection 
                (c)).''.
    (c) Carryforward of Unused Credit.--Section 30D of the Internal 
Revenue Code of 1986 is amended by redesignating subsection (g) (as 
amended by subsection (a)(2)) as subsection (h), and by inserting after 
subsection (f) the following new subsection:
    ``(g) Carryforward of Unused Credit.--
            ``(1) In general.--If the credit allowable under subsection 
        (a) (after the application of subsection (e)) exceeds the 
        limitation imposed by section 26(a) for such taxable year 
        reduced by the sum of the credits allowable under this subpart 
        (other than subsection (a) of this section), such excess shall 
        be carried to the succeeding taxable year and treated as a 
        credit allowable under subsection (a) for such succeeding 
        taxable year.
            ``(2) Limitation.--No amount of credit may be carried 
        forward under this subsection to any taxable year following the 
        5th taxable year after the taxable year in which the credit 
        arose. For purposes of the preceding sentence, credits shall be 
        treated as used on a first-in, first-out basis.''.
    (d) Effective Dates.--
            (1) Extension.--The amendments made by subsection (a) shall 
        apply to vehicles acquired after December 31, 2020.
            (2) Assignment.--The amendments made by subsection (b) 
        shall apply to vehicles acquired more than 60 days after the 
        date of the enactment of this Act.
            (3) Carryforward.--The amendments made by subsection (c) 
        shall apply to vehicles sold after the date of the enactment of 
        this Act.

SEC. 3. EXTENSION OF THE ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY 
              CREDIT.

    (a) In General.--Section 30C(g) of the Internal Revenue Code of 
1986 is amended by striking ``2021'' and inserting ``2031''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2021.

SEC. 4. EXTENSION OF THE ALTERNATIVE MOTOR VEHICLE CREDIT.

    (a) In General.--Paragraph (1) of section 30B(k) of the Internal 
Revenue Code of 1986 is amended by striking ``2021'' and inserting 
``2031''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2021.
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