S 3869 — American Subsidies for American Autos Act of 2024

(a) Allowance of credit In the case of a qualified buyer who during a taxable year places in service a previously-owned clean vehicle, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the lesser of— (1) $4,000, or (2) the amount equal to 30 percent of the sale price with respect to such vehicle. (b) Limitation based on modified adjusted gross income (1) In general No credit shall be allowed under subsection (a) for any taxable year if— (A) the lesser of— (i) the modified adjusted gross income of the taxpayer for such taxable year, or (ii) the modified adjusted gross income of the taxpayer for the preceding taxable year, exceeds (B) the threshold amount. (2) Threshold amount For purposes of paragraph (1)(B), the threshold amount shall be— (A) in the case of a joint return or a surviving spouse (as defined in section 2(a)), $150,000, (B) in the case of a head of household (as defined in section 2(b)), $112,500, and (C) in the case of a taxpayer not described in subparagraph (A) or (B), $75,000. (3) Modified adjusted gross income For purposes of this subsection, the term “modified adjusted gross income” means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. (c) Definitions For purposes of this section— (1) Previously-owned clean vehicle The term “previously-owned clean vehicle” means, with respect to a taxpayer, a motor vehicle— (A) the model year of which is at least 2 years earlier than the calendar year in which the taxpayer acquires such vehicle, (B) the original use of which commences with a person other than the taxpayer, (C) which is acquired by the taxpayer in a qualified sale, and (D) which— (i) meets the requirements of subparagraphs (C), (D), (E), (F), and (H) (except for clause (iv) thereof) of section 30D(d)(1), or (ii) is a motor vehicle which— (I) satisfies the requirements under subparagraphs (A) and (B) of section 30B(b)(3), and (II) has a gross vehicle weight rating of less than 14,000 pounds. (2) Qualified sale The term “qualified sale” means a sale of a motor vehicle— (A) by a dealer (as defined in section 30D(g)(8)), (B) for a sale price which does not exceed $25,000, and (C) which is the first transfer since the date of the enactment of this section to a qualified buyer other than the person with whom the original use of such vehicle commenced. (3) Qualified buyer The term “qualified buyer” means, with respect to a sale of a motor vehicle, a taxpayer— (A) who is an individual, (B) who purchases such vehicle for use and not for resale, (C) with respect to whom no deduction is allowable with respect to another taxpayer under section 151, and (D) who has not been allowed a credit under this section for any sale during the 3-year period ending on the date of the sale of such vehicle. (4) Motor vehicle; capacity The terms “motor vehicle” and “capacity” have the meaning given such terms in paragraphs (2) and (4) of section 30D(d), respectively. (d) VIN number requirement No credit shall be allowed under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year. (e) Application of certain rules For purposes of this section, rules similar to the rules of section 30D(f) (without regard to paragraph (10) or (11) thereof) shall apply for purposes of this section. (f) Transfer of credit Rules similar to the rules of section 30D(g) shall apply. (g) Termination No credit shall be allowed under this section with respect to any vehicle acquired after September 30, 2025.

(a) Allowance of credit There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new clean vehicle placed in service by the taxpayer during the taxable year. (b) Per vehicle dollar limitation (1) In general The amount determined under this subsection with respect to any new clean vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle. (2) Critical minerals In the case of a vehicle with respect to which the requirement described in subsection (e)(1)(A) is satisfied, the amount determined under this paragraph is $3,750. (3) Battery components In the case of a vehicle with respect to which the requirement described in subsection (e)(2)(A) is satisfied, the amount determined under this paragraph is $3,750. (c) Application with other credits (1) Business credit treated as part of general business credit So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). (2) Personal credit For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. (d) New clean vehicle For purposes of this section— (1) In general The term “new clean vehicle” means a motor vehicle— (A) the original use of which commences with the taxpayer, (B) which is acquired for use or lease by the taxpayer and not for resale, (C) which is made by a qualified manufacturer, (D) which is treated as a motor vehicle for purposes of title II of the Clean Air Act, (E) which has a gross vehicle weight rating of less than 14,000 pounds, (F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which— (i) has a capacity of not less than 7 kilowatt hours, and (ii) is capable of being recharged from an external source of electricity, (G) the final assembly of which occurs within North America, and (H) for which the person who sells any vehicle to the taxpayer furnishes a report to the taxpayer and to the Secretary, at such time and in such manner as the Secretary shall provide, containing— (i) the name and taxpayer identification number of the taxpayer, (ii) the vehicle identification number of the vehicle, unless, in accordance with any applicable rules promulgated by the Secretary of Transportation, the vehicle is not assigned such a number, (iii) the battery capacity of the vehicle, (iv) verification that original use of the vehicle commences with the taxpayer, (v) the maximum credit under this section allowable to the taxpayer with respect to the vehicle, and (vi) in the case of a taxpayer who makes an election under subsection (g)(1), any amount described in subsection (g)(2)(C) which has been provided to such taxpayer. (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. (3) Qualified manufacturer The term “qualified manufacturer” means any manufacturer (within the meaning of the 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.)) which enters into a written agreement with the Secretary under which such manufacturer agrees to make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) providing vehicle identification numbers and such other information related...

(a) In general For purposes of section 38, the qualified commercial clean vehicle credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each qualified commercial clean vehicle placed in service by the taxpayer during the taxable year. (b) Per vehicle amount (1) In general Subject to paragraph (4), the amount determined under this subsection with respect to any qualified commercial clean vehicle shall be equal to the lesser of— (A) 15 percent of the basis of such vehicle (30 percent in the case of a vehicle not powered by a gasoline or diesel internal combustion engine), or (B) the incremental cost of such vehicle. (2) Incremental cost For purposes of paragraph (1)(B), the incremental cost of any qualified commercial clean vehicle is an amount equal to the excess of the purchase price for such vehicle over such price of a comparable vehicle. (3) Comparable vehicle For purposes of this subsection, the term “comparable vehicle” means, with respect to any qualified commercial clean vehicle, any vehicle which is powered solely by a gasoline or diesel internal combustion engine and which is comparable in size and use to such vehicle. (4) Limitation The amount determined under this subsection with respect to any qualified commercial clean vehicle shall not exceed— (A) in the case of a vehicle which has a gross vehicle weight rating of less than 14,000 pounds, $7,500, and (B) in the case of a vehicle not described in subparagraph (A), $40,000. (c) Qualified commercial clean vehicle For purposes of this section, the term “qualified commercial clean vehicle” means any vehicle which— (1) meets the requirements of section 30D(d)(1)(C) and is acquired for use or lease by the taxpayer and not for resale, (2) either— (A) meets the requirements of subparagraph (D) of section 30D(d)(1) and is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails), or (B) is mobile machinery, as defined in section 4053(8) (including vehicles that are not designed to perform a function of transporting a load over the public highways), (3) either— (A) is propelled to a significant extent by an electric motor which draws electricity from a battery which has a capacity of not less than 15 kilowatt hours (or, in the case of a vehicle which has a gross vehicle weight rating of less than 14,000 pounds, 7 kilowatt hours) and is capable of being recharged from an external source of electricity, or (B) is a motor vehicle which satisfies the requirements under subparagraphs (A) and (B) of section 30B(b)(3), and (4) is of a character subject to the allowance for depreciation. (d) Special rules (1) In general Rules similar to the rules under subsection (f) of section 30D (without regard to paragraph (10) or (11) thereof) shall apply for purposes of this section. (2) Vehicles placed in service by tax-exempt entities Subsection (c)(4) shall not apply to any vehicle which is not subject to a lease and which is placed in service by a tax-exempt entity described in clause (i), (ii), or (iv) of section 168(h)(2)(A). (3) No double benefit No credit shall be allowed under this section with respect to any vehicle for which a credit was allowed under section 30D. (e) VIN number requirement No credit shall be determined under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year. (f) Regulations and guidance The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance relating to determination of the incremental cost of any qualified commercial clean vehicle. (g) Termination No credit shall be determined under this section with respect to any vehicle acquired after September 30, 2025.

(a) Feasibility reports The Secretary shall, by rule, within 60 days after December 22, 1975, prescribe guidelines for the preparation of a State energy conservation feasibility report. The Secretary shall invite the Governor of each State to submit, within 3 months after the effective date of such guidelines, such a report. Such report shall include— (1) an assessment of the feasibility of establishing a State energy conservation goal, which goal shall consist of a reduction, as a result of the implementation of the State energy conservation plan described in this section, of 5 percent or more in the total amount of energy consumed in such State in the year 1980 from the projected energy consumption for such State in the year 1980, and (2) a proposal by such State for the development of a State energy conservation plan to achieve such goal. (b) Guidelines The Secretary shall, by rule, within 6 months after December 22, 1975, prescribe guidelines with respect to measures required to be included in, and guidelines for the development, modification, and funding of, State energy conservation plans. The Secretary shall invite the Governor of each State to submit, within 5 months after the effective date of such guidelines, a report. Such report shall include— (1) a proposed State energy conservation plan designed to result in scheduled progress toward, and achievement of, the State energy conservation goal of such State; and (2) a detailed description of the requirements, including the estimated cost of implementation and the estimated energy savings, associated with each functional category of energy conservation included in the State energy conservation plan. (c) Mandatory features of plans Each proposed State energy conservation plan to be eligible for Federal assistance under this part shall include— (1) mandatory lighting efficiency standards for public buildings (except public buildings owned or leased by the United States); (2) programs to promote the availability and use of carpools, vanpools, and public transportation (except that no Federal funds provided under this part shall be used for subsidizing fares for public transportation); (3) mandatory standards and policies relating to energy efficiency to govern the procurement practices of such State and its political subdivisions; (4) mandatory thermal efficiency standards and insulation requirements for new and renovated buildings (except buildings owned or leased by the United States); (5) a traffic law or regulation which, to the maximum extent practicable consistent with safety, permits the operator of a motor vehicle to turn such vehicle right at a red stop light after stopping and to turn such vehicle left from a one-way street onto a one-way street at a red light after stopping; (6) procedures for ensuring effective coordination among various local, State, and Federal energy conservation programs within the State, including any program administered within the Office of Technical and Financial Assistance of the Department of Energy and the Low Income Home Energy Assistance Program administered by the Department of Health and Human Services; and (7) the mandatory conduct of activities to support transmission and distribution planning, including— (A) support for local governments and Indian Tribes; (B) feasibility studies for transmission line routes and alternatives; (C) preparation of necessary project design and permits; and (D) outreach to affected stakeholders. (d) Optional features of plans Each proposed State energy conservation plan may include— (1) restrictions governing the hours and conditions of operation of public buildings (except buildings owned or leased by the United States); (2) restrictions on the use of decorative or nonessential lighting; (3) programs to increase transportation energy efficiency, including programs to help reduce carbon emissions in the transportation sector by 2050 and accelerate the use of alternative transportation fuels for...

(a) Appropriations (1) In general In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $600,000,000, to remain available until September 30, 2031, to carry out this section. (2) Nonattainment areas In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $400,000,000, to remain available until September 30, 2031, to make awards under this section to eligible recipients and to eligible contractors that propose to replace eligible vehicles to serve 1 or more communities located in an air quality area designated pursuant to section 7407 of this title as nonattainment for any air pollutant. (3) Reservation Of the funds appropriated by paragraph (1), the Administrator shall reserve 3 percent for administrative costs necessary to carry out this section. (b) Program Beginning not later than 180 days after August 16, 2022, the Administrator shall implement a program to make awards of grants and rebates to eligible recipients, and to make awards of contracts to eligible contractors for providing rebates, for up to 100 percent of costs for— (1) the incremental costs of replacing an eligible vehicle that is not a zero-emission vehicle with a zero-emission vehicle, as determined by the Administrator based on the market value of the vehicles; (2) purchasing, installing, operating, and maintaining infrastructure needed to charge, fuel, or maintain zero-emission vehicles; (3) workforce development and training to support the maintenance, charging, fueling, and operation of zero-emission vehicles; and (4) planning and technical activities to support the adoption and deployment of zero-emission vehicles. (c) Applications To seek an award under this section, an eligible recipient or eligible contractor shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator shall prescribe. (d) Definitions For purposes of this section: (1) Eligible contractor The term “eligible contractor” means a contractor that has the capacity— (A) to sell, lease, license, or contract for service zero-emission vehicles, or charging or other equipment needed to charge, fuel, or maintain zero-emission vehicles, to individuals or entities that own, lease, license, or contract for service an eligible vehicle; or (B) to arrange financing for such a sale, lease, license, or contract for service. (2) Eligible recipient The term “eligible recipient” means— (A) a State; (B) a municipality; (C) an Indian tribe; or (D) a nonprofit school transportation association. (3) Eligible vehicle The term “eligible vehicle” means a Class 6 or Class 7 heavy-duty vehicle as defined in section 1037.801 of title 40, Code of Federal Regulations (as in effect on August 16, 2022). (4) Greenhouse gas The term “greenhouse gas” means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride. (5) Zero-emission vehicle The term “zero-emission vehicle” means a vehicle that has a drivetrain that produces, under any possible operational mode or condition, zero exhaust emissions of— (A) any air pollutant that is listed pursuant to section 7408(a) of this title (or any precursor to such an air pollutant); and (B) any greenhouse gas.

(a) Definitions In this section: (1) Administrator The term “Administrator” means the Administrator of the Environmental Protection Agency. (2) Alternative fuel The term “alternative fuel” means liquefied natural gas, compressed natural gas, hydrogen, propane, or biofuels. (3) Clean school bus The term “clean school bus” means a school bus that— (A) the Administrator certifies reduces emissions and is operated entirely or in part using an alternative fuel; or (B) is a zero-emission school bus. (4) Eligible contractor The term “eligible contractor” means a contractor that is a for-profit, not-for-profit, or nonprofit entity that has the capacity— (A) to sell, lease, license, or contract for service clean school buses, zero-emission school buses, charging or fueling infrastructure, or other equipment needed to charge, fuel, or maintain clean school buses or zero-emission school buses, to individuals or entities that own, lease, license, or contract for service a school bus or a fleet of school buses; or (B) to arrange financing for such a sale, lease, license, or contract for service. (5) Eligible recipient (A) In general Subject to subparagraph (B), the term “eligible recipient” means— (i) 1 or more local or State governmental entities responsible for— (I) providing school bus service to 1 or more public school systems; or (II) the purchase, lease, license, or contract for service of school buses; (ii) an eligible contractor; (iii) a nonprofit school transportation association; (iv) a charter school (as defined in section 7221i of title 20) responsible for the purchase, lease, license, or contract for service of school buses for that charter school; or (v) an Indian Tribe (as defined in section 5304 of title 25), Tribal organization (as defined in that section), or tribally controlled school (as defined in section 2511 of title 25) that is responsible for— (I) providing school bus service to 1 or more Bureau-funded schools (as defined in section 2021 of title 25); or (II) the purchase, lease, license, or contract for service of school buses. (B) Special requirements In the case of eligible recipients identified under clauses (ii) and (iii) of subparagraph (A), the Administrator shall establish timely and appropriate requirements for notice and shall establish timely and appropriate requirements for approval by the public school systems that would be served by buses purchased using award funds made available under this section. (6) High-need local educational agency The term “high-need local educational agency” means a local educational agency (as defined in section 7801 of title 20) that is among the local educational agencies in the applicable State with high percentages of children counted under section 6333(c) of title 20, on the basis of the most recent satisfactory data available, as determined by the Secretary of Education (or, for a local educational agency for which no such data is available, such other data as the Secretary of Education determines to be satisfactory). (7) School bus The term “school bus” has the meaning given the term “schoolbus” in section 30125(a) of title 49. (8) Zero-emission school bus The term “zero-emission school bus” means a school bus that is certified by the Administrator to have a drivetrain that produces, under any possible operational mode or condition, zero exhaust emission of— (A) any air pollutant that is listed pursuant to section 7408(a) of this title (or any precursor to such an air pollutant); and (B) any greenhouse gas. (b) Program for replacement of existing school buses with clean school buses and zero-emission school buses (1) Establishment The Administrator shall establish a program— (A) to award grants and rebates on a competitive basis to eligible recipients for the replacement of existing school buses with clean school buses; (B) to award grants and rebates on a competitive basis to eligible recipients for the replacement of existing school buses with zero-emission schoo...

(a) Definitions In this section: (1) Alternative fueled vehicle The term “alternative fueled vehicle” has the meaning given the term in section 13211 of this title. (2) Alternative fueled vehicle infrastructure The term “alternative fueled vehicle infrastructure” means infrastructure used to charge or fuel an alternative fueled vehicle. (3) Eligible entity The term “eligible entity” means a consortium of— (A) 1 local educational agency; and (B) 1 or more— (i) schools; (ii) nonprofit organizations that have the knowledge and capacity to partner and assist with energy improvements; (iii) for-profit organizations that have the knowledge and capacity to partner and assist with energy improvements; or (iv) community partners that have the knowledge and capacity to partner and assist with energy improvements. (4) Energy improvement The term “energy improvement” means— (A) any improvement, repair, or renovation to a school that results in a direct reduction in school energy costs, including improvements to the envelope, air conditioning system, ventilation system, heating system, domestic hot water heating system, compressed air system, distribution system, lighting system, power system, and controls of a building; (B) any improvement, repair, or renovation to, or installation in, a school that— (i) leads to an improvement in teacher and student health, including indoor air quality; and (ii) achieves energy savings; (C) any improvement, repair, or renovation to a school involving the installation of renewable energy technologies; (D) the installation of alternative fueled vehicle infrastructure on school grounds for— (i) exclusive use of school buses, school fleets, or students; or (ii) the general public; and (E) the purchase or lease of alternative fueled vehicles to be used by a school, including school buses, fleet vehicles, and other operational vehicles. (5) High school The term “high school” has the meaning given the term in section 7801 of title 20. (6) Local educational agency The term “local educational agency” has the meaning given the term in section 7801 of title 20. (7) Nonprofit organization The term “nonprofit organization” means— (A) an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; or (B) a mutual or cooperative electric company described in section 501(c)(12) of such Code. (8) Partnering local educational agency The term “partnering local educational agency”, with respect to an eligible entity, means the local educational agency participating in the consortium of the eligible entity. (b) Grants The Secretary shall award competitive grants to eligible entities to make energy improvements in accordance with this section. (c) Applications (1) In general An eligible entity desiring a grant under this section shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (2) Contents The application submitted under paragraph (1) shall include each of the following: (A) A needs assessment of the current condition of the school and school facilities that would receive the energy improvements if the application were approved. (B) A draft work plan of the intended achievements of the eligible entity at the school. (C) A description of the energy improvements that the eligible entity would carry out at the school if the application were approved. (D) A description of the capacity of the eligible entity to provide services and comprehensive support to make the energy improvements referred to in subparagraph (C). (E) An assessment of the expected needs of the eligible entity for operation and maintenance training funds, and a plan for use of those funds, if applicable. (F) An assessment of the expected energy efficiency, energy savings, and safety benefits of the energy improvements. (G) A cost estimate of the proposed energy improvements. (H) An identification of...

(a) Formula Grants.— (1) Definitions.— In this subsection— (A) the term “low or no emission vehicle” has the meaning given that term in subsection (c)(1); (B) the term “State” means a State of the United States; and (C) the term “territory” means the District of Columbia, Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, and the United States Virgin Islands. (2) General authority.— The Secretary may make grants under this subsection to assist eligible recipients described in paragraph (4)(A) in financing capital projects— (A) to replace, rehabilitate, and purchase buses and related equipment, including technological changes or innovations to modify low or no emission vehicles or facilities; and (B) to construct bus-related facilities. (3) Grant requirements.— The requirements of— (A) section 5307 shall apply to recipients of grants made in urbanized areas under this subsection; and (B) section 5311 shall apply to recipients of grants made in rural areas under this subsection. (4) Eligible recipients.— (A) Recipients.— Eligible recipients under this subsection are— (i) designated recipients that allocate funds to fixed route bus operators; or (ii) State or local governmental entities that operate fixed route bus service. (B) Subrecipients.— A recipient that receives a grant under this subsection may allocate amounts of the grant to subrecipients that are public agencies or private nonprofit organizations engaged in public transportation. (5) Distribution of grant funds.— Funds allocated under section 5338(a)(2)(L) 1 shall be distributed as follows: (A) National distribution.— $206,000,000 each fiscal year shall be allocated to all States and territories, with each State receiving $4,000,000 for each such fiscal year and each territory receiving $1,000,000 for each such fiscal year. (B) Distribution using population and service factors.— The remainder of the funds not otherwise distributed under subparagraph (A) shall be allocated pursuant to the formula set forth in section 5336 other than subsection (b). (6) Transfers of apportionments.— (A) Transfer flexibility for national distribution funds.— The Governor of a State may transfer any part of the State’s apportionment under paragraph (5)(A) to supplement amounts apportioned to the State under section 5311(c) or amounts apportioned to urbanized areas under subsections (a) and (c) of section 5336. (B) Transfer flexibility for population and service factors funds.— The Governor of a State may expend in an urbanized area with a population of less than 200,000 any amounts apportioned under paragraph (5)(B) that are not allocated to designated recipients in urbanized areas with a population of 200,000 or more. (7) Government share of costs.— (A) Capital projects.— A grant for a capital project under this subsection shall be for 80 percent of the net capital costs of the project. A recipient of a grant under this subsection may provide additional local matching amounts. (B) Remaining costs.— The remainder of the net project cost shall be provided— (i) in cash from non-Government sources other than revenues from providing public transportation services; (ii) from revenues derived from the sale of advertising and concessions; (iii) from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital; (iv) from amounts received under a service agreement with a State or local social service agency or private social service organization; or (v) from revenues generated from value capture financing mechanisms. (8) Period of availability to recipients.— Amounts made available under this subsection may be obligated by a recipient for 3 fiscal years after the fiscal year in which the amount is apportioned. Not later than 30 days after the end of the 3-fiscal-year period described in the preceding sentence, any amount that is not obligated on the last day of such period shall be added to the amount that may be apportioned under this subsectio...