[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2267 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 2267
To amend the Internal Revenue Code of 1986 to provide a tax credit for
the production of flexible fuel vehicles, and to amend title 49, United
States Code, to restore certain flexible fuel vehicle credits.
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IN THE SENATE OF THE UNITED STATES
June 24, 2021
Ms. Klobuchar (for herself and Ms. Ernst) introduced the following
bill; which was read twice and referred to the Committee on Finance
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A BILL
To amend the Internal Revenue Code of 1986 to provide a tax credit for
the production of flexible fuel vehicles, and to amend title 49, United
States Code, to restore certain flexible fuel vehicle credits.
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 ``Clean Fuels Vehicle Act of 2021''.
SEC. 2. FLEXIBLE FUEL VEHICLE PRODUCTION TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45U. FLEXIBLE FUEL VEHICLE PRODUCTION CREDIT.
``(a) In General.--For purposes of section 38, in the case of a
manufacturer, the flexible fuel vehicle production credit for any
taxable year shall be an amount equal to the product of--
``(1) $200, and
``(2) the number of qualified flexible fuel vehicles--
``(A) produced by the taxpayer, and
``(B) sold by the taxpayer to an unrelated person
in the United States during the taxable year.
``(b) Limitation.--The number of qualified flexible fuel vehicles
taken into account for any taxable year shall not exceed 25 percent of
the sum of--
``(1) the total number of light duty vehicles produced for
model years ending in such taxable year, plus
``(2) the total number of light duty trucks produced for
model years ending in such taxable year.
``(c) Qualified Flexible Fuel Vehicle.--For purposes of this
section--
``(1) In general.--The term `qualified flexible fuel
vehicle' means a motor vehicle--
``(A) which is engineered and designed to be
operated--
``(i) on a petroleum fuel and on a methanol
or ethanol fuel, or
``(ii) on any mixture of the petroleum fuel
and methanol or ethanol, and
``(B) which meets the requirements for a flexible
fuel vehicle as are prescribed by the Administrator of
the Environmental Protection Agency for purposes of
title of the administration of title II of the Clean
Air Act (42 U.S.C. 7521 et seq.).
``(2) Motor vehicle.--The term `motor vehicle' means any
vehicle which is manufactured primarily for use on public
streets, roads, and highways (not including a vehicle operated
exclusively on a rail or rails) and which has at least 4
wheels.
``(d) Other Definitions and Rules.--
``(1) Manufacturer; other terms.--The terms `manufacturer',
`light duty vehicle', `light duty truck', and `model year' have
the meanings given such terms in regulations prescribed by the
Administrator of the Environmental Protection Agency for
purposes of the administration of title II of the Clean Air Act
(42 U.S.C. 7521 et seq.).
``(2) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
In the case of a corporation which is a member of an affiliated
group of corporations filing a consolidated return, such
corporation shall be treated as selling a vehicle to an
unrelated person if such vehicle is sold to such a person by
another member of such group.
``(e) Termination.--This section shall not apply to any flexible
fuel vehicle produced for any model year ending after 2031.''.
(b) Part of General Business Credit.--Section 38(b) of such Code is
amended by striking ``plus'' at the end of paragraph (32), by striking
the period at the end of paragraph (33) and inserting ``, plus'', and
by adding at the end the following new paragraph:
``(34) the flexible fuel vehicle production credit
determined under section 45U(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:
``Sec. 45U. Flexible fuel vehicle production credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to vehicles produced and sold after the date of the enactment of
this Act, in taxable years ending after such date.
SEC. 3. RESTORATION OF CERTAIN FLEXIBLE FUEL VEHICLE CREDITS.
(a) Restoration of Manufacturing Incentives for Dual Fueled
Automobiles.--Section 32905(b) of title 49, United States Code, is
amended, in the matter preceding paragraph (1), by striking ``in model
years 1993 through 2019''.
(b) Repeal of Maximum Fuel Economy Increase for Alternative Fuel
Automobiles.--
(1) In general.--Section 32906 of title 49, United States
Code, is repealed.
(2) Clerical amendment.--The analysis for chapter 329 of
part C of subtitle VI of title 49, United States Code, is
amended by striking the item relating to section 32906.
(c) Testing Procedures Under the Clean Air Act.--Section 206 of the
Clean Air Act (42 U.S.C. 7525) is amended--
(1) in subsection (h), by striking ``subsection (a) and (b)
of this section'' and inserting ``subsections (a) and (b)'';
and
(2) by adding at the end the following:
``(i) Not later than 180 days after the date of enactment of this
subsection, the Administrator shall review the regulations under
subsections (a) and (b) relating to the testing of motor vehicles and
motor vehicle engines to ensure such testing is in accordance with
section 32905(b) of title 49, United States Code.''.
(d) Conforming Amendments.--
(1) Section 32901(c)(1) of title 49, United States Code, is
amended, in the first sentence, by striking ``under sections
32905 and 32906 of this title'' and inserting ``under section
32905''.
(2) Section 32905 of title 49, United States Code, is
amended by striking subsection (g).
(3) Section 32908(g)(3) of title 49, United States Code, is
amended by striking the second sentence.
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