To amend the Internal Revenue Code of 1986 to provide incentives for the production of motor vehicles powered by alternative fuels.

February 13, 2003

Mr. FILNER introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to provide incentives for the production of motor vehicles powered by alternative fuels.

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 `Putting the Pedal to the Metal: Accelerating the Energy Independence of America Act of 2003'.

SEC. 2. CREDIT FOR MANUFACTURE OF MOTOR VEHICLES POWERED BY ALTERNATIVE FUELS.

(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business related credits) is amended by adding at the end the following:

`SEC. 45G. CREDIT FOR MANUFACTURE OF MOTOR VEHICLES POWERED BY ALTERNATIVE FUELS.

`(a) GENERAL RULE- For purposes of section 38, the alternative fuel vehicle manufacturing credit is the applicable percentage of the aggregate amount paid or incurred by the taxpayer during the taxable year for the manufacture or production of motor vehicles.

`(b) APPLICABLE PERCENTAGE- For purposes of this section, the term `applicable percentage' means the percentage which the number of alternative fuel motor vehicles manufactured by the taxpayer during the taxable year bears to the total number of motor vehicles manufactured by the taxpayer during such year.

`(c) ALTERNATIVE FUEL MOTOR VEHICLES- For purposes of this section, the term `alternative fuel motor vehicle' means a motor vehicle (as defined by section 30(c)(2))--

`(1) which the Secretary of Energy, the Secretary of Transportation, and the Administrator of the Environmental Protection Agency, determine jointly to meet the requirements of the Clean Air Act and any other applicable provision of law, and

`(2) which operates only on fuel which is not gasoline, diesel fuel, or kerosene.

`(d) DENIAL OF DOUBLE BENEFIT- No deduction or other credit shall be allowed under this chapter for any amount taken into account in determining the credit under this section.

`(e) ELECTION NOT TO CLAIM CREDIT- This section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year.'.

(b) CONFORMING AMENDMENTS-

(1) Section 38(b) of such Code is amended by striking `plus' at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting `, plus', and by adding at the end the following:

`(16) the alternative fuel vehicle manufacturing credit determined under section 45G.'.

(2) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following:

`Sec. 45G. Credit for manufacture of motor vehicles powered by alternative fuels.'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

END