109th CONGRESS
2d Session

H. R. 6310

To amend the Internal Revenue Code of 1986 to provide a nonrefundable credit for the purchase of energy efficient tires.

IN THE HOUSE OF REPRESENTATIVES

September 29, 2006

Mr. WELLER introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Internal Revenue Code of 1986 to provide a nonrefundable credit for the purchase of energy efficient tires.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. NONREFUNDABLE CREDIT FOR ENERGY EFFICIENT TIRES.

    (a) In General- Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section:

`SEC. 25E. ENERGY EFFICIENT TIRES.

    `(a) Allowance of Credit- In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to $15 for each qualified energy efficient tire--

      `(1) which is purchased by the taxpayer during the taxable year for use by the taxpayer,

      `(2) the original use of which commences with the taxpayer, and

      `(3) which is placed in service by the taxpayer during the taxable year.

    `(b) Definition- For purposes of this section, the term `qualified energy efficient tire' means a tire certified as a qualified energy efficient tire pursuant to regulations issued under section 30123(d) of title 49, United States Code, that is purchased for use by the taxpayer and not for resale.

    `(c) Limitation Based on Amount of Tax- In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of--

      `(1) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

      `(2) the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.

    `(d) Carryforwards of Unused Credit-

      `(1) RULE FOR YEARS IN WHICH ALL PERSONAL CREDITS ALLOWED AGAINST REGULAR AND ALTERNATIVE MINIMUM TAX- In the case of a taxable year to which section 26(a)(2) applies, if the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by section 26(a)(2) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section and sections 23, 25D, and 1400C), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year.

      `(2) RULE FOR OTHER YEARS- In the case of a taxable year to which section 26(a)(2) does not apply, if the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by subsection (c) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year.'.

    (b) Conforming Amendments-

      (1) Section 23 of such Code is amended--

        (A) in subsection (b)(4)(B) by inserting `and section 25E' after `this section', and

        (B) in subsection (c)(1) by striking `25D and' and inserting `25D, 25E, and'.

      (2) Section 24(b)(3)(B) of such Code is amended by striking `and 25B' and inserting `25B, 25E, and'.

      (3) Clauses (i) and (ii) of section 25(e)(1)(C) of such Code is both amended by inserting `25E,' after `25D,'.

      (4) Section 25D(c) of such Code is amended--

        (A) in paragraph (1) by inserting `and section 25E' after `this section', and

        (B) in paragraph (2) by striking `and 25B' and inserting `25B, and 25E'.

      (5) Section 904(i) of such Code is amended by striking `and 25D' and inserting `and 25E'.

      (6) Section 1400C(d) of such Code is amended--

        (A) in paragraph (1) by striking `and section 25D' and inserting `, 25D, and 25E', and

        (B) in paragraph (2) by striking `and 25D' and inserting `25D, and 25E'.

      (7) The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code (relating to nonrefundable personal credits) is amended by inserting after the item relating to section 25D the following new item:

      `Sec. 25E. Energy efficient tires.'.

    (c) Effective Date- The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2006.

SEC. 2. ENERGY EFFICIENT TIRE LABELING.

    Section 30123 of title 49, United States Code, is amended by inserting after subsection (c) the following:

    `(d) Energy Efficient Tire Labeling- (1) The Secretary shall, by regulation, establish a system for the permanent labeling of tires, with respect to energy efficiency, similar to the system for other tire attributes contained in section 575.104 of title 49, Code of Federal Regulations. Such regulations shall establish criteria for certifying replacement passenger tires as qualified energy efficient tires.

    `(2) The primary factor for certifying replacement tires as qualified energy efficient tires under the regulations required by this subsection shall be achieving a rolling resistance coefficient that is at least 10 percent lower than the average rolling resistance coefficient (determined by mathematical mean) among replacement passenger car tires of comparable price, size, traction, speed capability, and wear resistance, as determined for the year 2006.

    `(3) No replacement tire shall be certified as a qualified energy efficient tire under the regulations required by this subsection if such tire has--

      `(A) a uniform tire quality grade rating below--

        `(i) grade `A' for traction;

        `(ii) grade `300' for treadwear; or

        `(iii) grade `B' for temperature; and

      `(B) a speed rating of S or T.

    `(4) As used in this subsection--

      `(A) the term `uniform tire quality grade' means the grade given a tire under the National Highway Traffic Safety Administration's Uniform Tire Quality Grading System (section 575.104 of title 49, Code of Federal Regulations);

      `(B) the term `rolling resistance coefficient' means the value of the rolling resistance force divided by the wheel load, as determined by the `SAE J1269' or `SAE J2452' tests developed by the Society of Automotive Engineers; and

      `(C) the term `replacement passenger car tires' means passenger car tires within the scope of section 575 of title 49, Code of Federal Regulations, that are not original tires included on a passenger vehicle by the vehicle manufacturer.'.

END