Subpart B—Other Credits
Amendments
2009—
2008—
2005—
1997—
1996—
1992—
1986—
1984—
§27. Taxes of foreign countries and possessions of the United States; possession tax credit
(a) Foreign tax credit
The amount of taxes imposed by foreign countries and possessions of the United States shall be allowed as a credit against the tax imposed by this chapter to the extent provided in section 901.
(b) Section 936 credit
In the case of a domestic corporation, the amount provided by section 936 (relating to Puerto Rico and possession tax credit) shall be allowed as a credit against the tax imposed by this chapter.
(Aug. 16, 1954, ch. 736,
Amendments
1984—
1976—
Effective Date of 1976 Amendment
"(1) Except as provided by paragraph (2), the amendments made by this section [enacting
"(2) The amendment made by subsection (d)(2) [amending
[§28. Renumbered §45C]
[§29. Renumbered §45K]
§30. Certain plug-in electric vehicles
(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 10 percent of the cost of any qualified plug-in electric vehicle placed in service by the taxpayer during the taxable year.
(b) Per vehicle dollar limitation
The amount of the credit allowed under subsection (a) with respect to any vehicle shall not exceed $2,500.
(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) Qualified plug-in electric vehicle
For purposes of this section—
(1) In general
The term "qualified plug-in electric vehicle" means a specified 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 manufacturer,
(D) which is manufactured primarily for use on public streets, roads, and highways,
(E) which has a gross vehicle weight rating of less than 14,000 pounds, and
(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 4 kilowatt hours (2.5 kilowatt hours in the case of a vehicle with 2 or 3 wheels), and
(ii) is capable of being recharged from an external source of electricity.
(2) Specified vehicle
The term "specified vehicle" means any vehicle which—
(A) is a low speed vehicle within the meaning of section 571.3 of title 49, Code of Federal Regulations (as in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009), or
(B) has 2 or 3 wheels.
(3) Manufacturer
The term "manufacturer" has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (
(4) Battery capacity
The term "capacity" means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge.
(e) Special rules
(1) Basis reduction
For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed.
(2) No double benefit
The amount of any deduction or other credit allowable under this chapter for a new qualified plug-in electric drive motor vehicle shall be reduced by the amount of credit allowable under subsection (a) for such vehicle.
(3) Property used by tax-exempt entity
In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)).
(4) Property used outside United States not qualified
No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1).
(5) Recapture
The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.
(6) Election not to take credit
No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.
(f) Termination
This section shall not apply to any vehicle acquired after December 31, 2011.
(Added
References in Text
The date of the enactment of the American Recovery and Reinvestment Tax Act of 2009, referred to in subsec. (d)(2)(A), is the date of the enactment of div. B of
The Clean Air Act, referred to in subsec. (d)(3), is act July 14, 1955, ch. 360,
Prior Provisions
A prior section 30 was renumbered
Amendments
2013—Subsec. (c)(2).
2010—Subsec. (c)(2)(B)(ii).
2009—
2005—Subsec. (b)(3)(A).
2004—Subsec. (b)(2).
"(A) 25 percent in the case of property placed in service in calendar year 2004,
"(B) 50 percent in the case of property placed in service in calendar year 2005, and
"(C) 75 percent in the case of property placed in service in calendar year 2006."
2002—Subsec. (b)(2).
Subsec. (b)(2)(A).
Subsec. (b)(2)(B).
Subsec. (b)(2)(C).
Subsec. (e).
1996—Subsec. (b)(3)(A).
Subsec. (d)(1).
Subsec. (d)(4).
Effective Date of 2013 Amendment
Amendment by
Effective and Termination Dates of 2010 Amendment
Amendment by
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2005 Amendment
Amendment by
Effective Date of 2004 Amendment
Effective Date of 2002 Amendment
Effective Date of 1996 Amendment
Amendment by section 1205(d)(4) of
Effective Date
Transitional Rule
§30A. Puerto Rico economic activity credit
(a) Allowance of credit
(1) In general
Except as otherwise provided in this section, if the conditions of both paragraph (1) and paragraph (2) of subsection (b) are satisfied with respect to a qualified domestic corporation, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to the portion of the tax which is attributable to the taxable income, from sources without the United States, from—
(A) the active conduct of a trade or business within Puerto Rico, or
(B) the sale or exchange of substantially all of the assets used by the taxpayer in the active conduct of such trade or business.
In the case of any taxable year beginning after December 31, 2001, the aggregate amount of taxable income taken into account under the preceding sentence (and in applying subsection (d)) shall not exceed the adjusted base period income of such corporation, as determined in the same manner as under section 936(j).
(2) Qualified domestic corporation
For purposes of paragraph (1), the term "qualified domestic corporation" means a domestic corporation—
(A) which is an existing credit claimant with respect to Puerto Rico, and
(B) with respect to which section 936(a)(4)(B) does not apply for the taxable year.
(3) Separate application
For purposes of determining—
(A) whether a taxpayer is an existing credit claimant with respect to Puerto Rico, and
(B) the amount of the credit allowed under this section,
this section (and so much of section 936 as relates to this section) shall be applied separately with respect to Puerto Rico.
(b) Conditions which must be satisfied
The conditions referred to in subsection (a) are—
(1) 3-year period
If 80 percent or more of the gross income of the qualified domestic corporation for the 3-year period immediately preceding the close of the taxable year (or for such part of such period immediately preceding the close of such taxable year as may be applicable) was derived from sources within a possession (determined without regard to section 904(f)).
(2) Trade or business
If 75 percent or more of the gross income of the qualified domestic corporation for such period or such part thereof was derived from the active conduct of a trade or business within a possession.
(c) Credit not allowed against certain taxes
The credit provided by subsection (a) shall not be allowed against the tax imposed by—
(1) section 59A (relating to environmental tax),
(2) section 531 (relating to the tax on accumulated earnings),
(3) section 541 (relating to personal holding company tax), or
(4) section 1351 (relating to recoveries of foreign expropriation losses).
(d) Limitations on credit for active business income
The amount of the credit determined under subsection (a) for any taxable year shall not exceed the sum of the following amounts:
(1) 60 percent of the sum of—
(A) the aggregate amount of the qualified domestic corporation's qualified possession wages for such taxable year, plus
(B) the allocable employee fringe benefit expenses of the qualified domestic corporation for such taxable year.
(2) The sum of—
(A) 15 percent of the depreciation allowances for the taxable year with respect to short-life qualified tangible property,
(B) 40 percent of the depreciation allowances for the taxable year with respect to medium-life qualified tangible property, and
(C) 65 percent of the depreciation allowances for the taxable year with respect to long-life qualified tangible property.
(3) If the qualified domestic corporation does not have an election to use the method described in section 936(h)(5)(C)(ii) (relating to profit split) in effect for the taxable year, the amount of the qualified possession income taxes for the taxable year allocable to nonsheltered income.
(e) Administrative provisions
For purposes of this title—
(1) the provisions of section 936 (including any applicable election thereunder) shall apply in the same manner as if the credit under this section were a credit under section 936(a)(1)(A) for a domestic corporation to which section 936(a)(4)(A) applies,
(2) the credit under this section shall be treated in the same manner as the credit under section 936, and
(3) a corporation to which this section applies shall be treated in the same manner as if it were a corporation electing the application of section 936.
(f) Denial of double benefit
Any wages or other expenses taken into account in determining the credit under this section may not be taken into account in determining the credit under section 41.
(g) Definitions
For purposes of this section, any term used in this section which is also used in section 936 shall have the same meaning given such term by section 936.
(h) Application of section
This section shall apply to taxable years beginning after December 31, 1995, and before January 1, 2006.
(Added
Amendments
2000—Subsecs. (f) to (h).
1997—
Effective Date of 2000 Amendment
Effective Date of 1997 Amendment
Amendment by
Effective Date
"(1)
"(2)
"(3)
American Samoa Economic Development Credit
"(a)
"(1) in the case of a taxable year beginning before January 1, 2012, such corporation—
"(A) is an existing credit claimant with respect to American Samoa, and
"(B) elected the application of section 936 of the Internal Revenue Code of 1986 for its last taxable year beginning before January 1, 2006, and
"(2) in the case of a taxable year beginning after December 31, 2011, such corporation meets the requirements of subsection (e).
"(b)
"(1)
"(2)
"(3)
"(c)
"(d)
"(1) in the case of a corporation that meets the requirements of subparagraphs (A) and (B) of subsection (a)(1), to the first 8 taxable years of such corporation which begin after December 31, 2006, and before January 1, 2014, and
"(2) in the case of a corporation that does not meet the requirements of subparagraphs (A) and (B) of subsection (a)(1), to the first 2 taxable years of such corporation which begin after December 31, 2011, and before January 1, 2014.
"(e)
[
[
[
§30B. Alternative motor vehicle credit
(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—
(1) the new qualified fuel cell motor vehicle credit determined under subsection (b),
(2) the new advanced lean burn technology motor vehicle credit determined under subsection (c),
(3) the new qualified hybrid motor vehicle credit determined under subsection (d),
(4) the new qualified alternative fuel motor vehicle credit determined under subsection (e), and
(5) the plug-in conversion credit determined under subsection (i).
(b) New qualified fuel cell motor vehicle credit
(1) In general
For purposes of subsection (a), the new qualified fuel cell motor vehicle credit determined under this subsection with respect to a new qualified fuel cell motor vehicle placed in service by the taxpayer during the taxable year is—
(A) $8,000 ($4,000 in the case of a vehicle placed in service after December 31, 2009), if such vehicle has a gross vehicle weight rating of not more than 8,500 pounds,
(B) $10,000, if such vehicle has a gross vehicle weight rating of more than 8,500 pounds but not more than 14,000 pounds,
(C) $20,000, if such vehicle has a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and
(D) $40,000, if such vehicle has a gross vehicle weight rating of more than 26,000 pounds.
(2) Increase for fuel efficiency
(A) In general
The amount determined under paragraph (1)(A) with respect to a new qualified fuel cell motor vehicle which is a passenger automobile or light truck shall be increased by—
(i) $1,000, if such vehicle achieves at least 150 percent but less than 175 percent of the 2002 model year city fuel economy,
(ii) $1,500, if such vehicle achieves at least 175 percent but less than 200 percent of the 2002 model year city fuel economy,
(iii) $2,000, if such vehicle achieves at least 200 percent but less than 225 percent of the 2002 model year city fuel economy,
(iv) $2,500, if such vehicle achieves at least 225 percent but less than 250 percent of the 2002 model year city fuel economy,
(v) $3,000, if such vehicle achieves at least 250 percent but less than 275 percent of the 2002 model year city fuel economy,
(vi) $3,500, if such vehicle achieves at least 275 percent but less than 300 percent of the 2002 model year city fuel economy, and
(vii) $4,000, if such vehicle achieves at least 300 percent of the 2002 model year city fuel economy.
(B) 2002 model year city fuel economy
For purposes of subparagraph (A), the 2002 model year city fuel economy with respect to a vehicle shall be determined in accordance with the following tables:
(i) In the case of a passenger automobile:
(ii) In the case of a light truck:
(C) Vehicle inertia weight class
For purposes of subparagraph (B), the term "vehicle inertia weight class" has the same meaning as when defined in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (
(3) New qualified fuel cell motor vehicle
For purposes of this subsection, the term "new qualified fuel cell motor vehicle" means a motor vehicle—
(A) which is propelled by power derived from 1 or more cells which convert chemical energy directly into electricity by combining oxygen with hydrogen fuel which is stored on board the vehicle in any form and may or may not require reformation prior to use,
(B) which, in the case of a passenger automobile or light truck, has received on or after the date of the enactment of this section a certificate that such vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle,
(C) the original use of which commences with the taxpayer,
(D) which is acquired for use or lease by the taxpayer and not for resale, and
(E) which is made by a manufacturer.
(c) New advanced lean burn technology motor vehicle credit
(1) In general
For purposes of subsection (a), the new advanced lean burn technology motor vehicle credit determined under this subsection for the taxable year is the credit amount determined under paragraph (2) with respect to a new advanced lean burn technology motor vehicle placed in service by the taxpayer during the taxable year.
(2) Credit amount
(A) Fuel economy
(i) In general
The credit amount determined under this paragraph shall be determined in accordance with the following table:
| In the case of a vehicle which achieves a fuel economy (expressed as a percentage of the 2002 model year city fuel economy) of— | The credit amount is— |
|---|---|
| At least 125 percent but less than 150 percent | $400 |
| At least 150 percent but less than 175 percent | $800 |
| At least 175 percent but less than 200 percent | $1,200 |
| At least 200 percent but less than 225 percent | $1,600 |
| At least 225 percent but less than 250 percent | $2,000 |
| At least 250 percent | $2,400. |
(ii) 2002 model year city fuel economy
For purposes of clause (i), the 2002 model year city fuel economy with respect to a vehicle shall be determined on a gasoline gallon equivalent basis as determined by the Administrator of the Environmental Protection Agency using the tables provided in subsection (b)(2)(B) with respect to such vehicle.
(B) Conservation credit
The amount determined under subparagraph (A) with respect to a new advanced lean burn technology motor vehicle shall be increased by the conservation credit amount determined in accordance with the following table:
| In the case of a vehicle which achieves a lifetime fuel savings (expressed in gallons of gasoline) of— | The conservation credit amount is— |
|---|---|
| At least 1,200 but less than 1,800 | $250 |
| At least 1,800 but less than 2,400 | $500 |
| At least 2,400 but less than 3,000 | $750 |
| At least 3,000 | $1,000. |
(3) New advanced lean burn technology motor vehicle
For purposes of this subsection, the term "new advanced lean burn technology motor vehicle" means a passenger automobile or a light truck—
(A) with an internal combustion engine which—
(i) is designed to operate primarily using more air than is necessary for complete combustion of the fuel,
(ii) incorporates direct injection,
(iii) achieves at least 125 percent of the 2002 model year city fuel economy,
(iv) for 2004 and later model vehicles, has received a certificate that such vehicle meets or exceeds—
(I) in the case of a vehicle having a gross vehicle weight rating of 6,000 pounds or less, the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle, and
(II) in the case of a vehicle having a gross vehicle weight rating of more than 6,000 pounds but not more than 8,500 pounds, the Bin 8 Tier II emission standard which is so established,
(B) the original use of which commences with the taxpayer,
(C) which is acquired for use or lease by the taxpayer and not for resale, and
(D) which is made by a manufacturer.
(4) Lifetime fuel savings
For purposes of this subsection, the term "lifetime fuel savings" means, in the case of any new advanced lean burn technology motor vehicle, an amount equal to the excess (if any) of—
(A) 120,000 divided by the 2002 model year city fuel economy for the vehicle inertia weight class, over
(B) 120,000 divided by the city fuel economy for such vehicle.
(d) New qualified hybrid motor vehicle credit
(1) In general
For purposes of subsection (a), the new qualified hybrid motor vehicle credit determined under this subsection for the taxable year is the credit amount determined under paragraph (2) with respect to a new qualified hybrid motor vehicle placed in service by the taxpayer during the taxable year.
(2) Credit amount
(A) Credit amount for passenger automobiles and light trucks
In the case of a new qualified hybrid motor vehicle which is a passenger automobile or light truck and which has a gross vehicle weight rating of not more than 8,500 pounds, the amount determined under this paragraph is the sum of the amounts determined under clauses (i) and (ii).
(i) Fuel economy
The amount determined under this clause is the amount which would be determined under subsection (c)(2)(A) if such vehicle were a vehicle referred to in such subsection.
(ii) Conservation credit
The amount determined under this clause is the amount which would be determined under subsection (c)(2)(B) if such vehicle were a vehicle referred to in such subsection.
(B) Credit amount for other motor vehicles
(i) In general
In the case of any new qualified hybrid motor vehicle to which subparagraph (A) does not apply, the amount determined under this paragraph is the amount equal to the applicable percentage of the qualified incremental hybrid cost of the vehicle as certified under clause (v).
(ii) Applicable percentage
For purposes of clause (i), the applicable percentage is—
(I) 20 percent if the vehicle achieves an increase in city fuel economy relative to a comparable vehicle of at least 30 percent but less than 40 percent,
(II) 30 percent if the vehicle achieves such an increase of at least 40 percent but less than 50 percent, and
(III) 40 percent if the vehicle achieves such an increase of at least 50 percent.
(iii) Qualified incremental hybrid cost
For purposes of this subparagraph, the qualified incremental hybrid cost of any vehicle is equal to the amount of the excess of the manufacturer's suggested retail price for such vehicle over such price for a comparable vehicle, to the extent such amount does not exceed—
(I) $7,500, if such vehicle has a gross vehicle weight rating of not more than 14,000 pounds,
(II) $15,000, if such vehicle has a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and
(III) $30,000, if such vehicle has a gross vehicle weight rating of more than 26,000 pounds.
(iv) Comparable vehicle
For purposes of this subparagraph, the term "comparable vehicle" means, with respect to any new qualified hybrid motor vehicle, any vehicle which is powered solely by a gasoline or diesel internal combustion engine and which is comparable in weight, size, and use to such vehicle.
(v) Certification
A certification described in clause (i) shall be made by the manufacturer and shall be determined in accordance with guidance prescribed by the Secretary. Such guidance shall specify procedures and methods for calculating fuel economy savings and incremental hybrid costs.
(3) New qualified hybrid motor vehicle
For purposes of this subsection—
(A) In general
The term "new qualified hybrid motor vehicle" means a motor vehicle—
(i) which draws propulsion energy from onboard sources of stored energy which are both—
(I) an internal combustion or heat engine using consumable fuel, and
(II) a rechargeable energy storage system,
(ii) which, in the case of a vehicle to which paragraph (2)(A) applies, has received a certificate of conformity under the Clean Air Act and meets or exceeds the equivalent qualifying California low emission vehicle standard under section 243(e)(2) of the Clean Air Act for that make and model year, and
(I) in the case of a vehicle having a gross vehicle weight rating of 6,000 pounds or less, the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle, and
(II) in the case of a vehicle having a gross vehicle weight rating of more than 6,000 pounds but not more than 8,500 pounds, the Bin 8 Tier II emission standard which is so established,
(iii) which has a maximum available power of at least—
(I) 4 percent in the case of a vehicle to which paragraph (2)(A) applies,
(II) 10 percent in the case of a vehicle which has a gross vehicle weight rating of more than 8,500 pounds and not more than 14,000 pounds, and
(III) 15 percent in the case of a vehicle in excess of 14,000 pounds,
(iv) which, in the case of a vehicle to which paragraph (2)(B) applies, has an internal combustion or heat engine which has received a certificate of conformity under the Clean Air Act as meeting the emission standards set in the regulations prescribed by the Administrator of the Environmental Protection Agency for 2004 through 2007 model year diesel heavy duty engines or ottocycle heavy duty engines, as applicable,
(v) the original use of which commences with the taxpayer,
(vi) which is acquired for use or lease by the taxpayer and not for resale, and
(vii) which is made by a manufacturer.
Such term shall not include any vehicle which is not a passenger automobile or light truck if such vehicle has a gross vehicle weight rating of less than 8,500 pounds.
(B) Consumable fuel
For purposes of subparagraph (A)(i)(I), the term "consumable fuel" means any solid, liquid, or gaseous matter which releases energy when consumed by an auxiliary power unit.
(C) Maximum available power
(i) Certain passenger automobiles and light trucks
In the case of a vehicle to which paragraph (2)(A) applies, the term "maximum available power" means the maximum power available from the rechargeable energy storage system, during a standard 10 second pulse power or equivalent test, divided by such maximum power and the SAE net power of the heat engine.
(ii) Other motor vehicles
In the case of a vehicle to which paragraph (2)(B) applies, the term "maximum available power" means the maximum power available from the rechargeable energy storage system, during a standard 10 second pulse power or equivalent test, divided by the vehicle's total traction power. For purposes of the preceding sentence, the term "total traction power" means the sum of the peak power from the rechargeable energy storage system and the heat engine peak power of the vehicle, except that if such storage system is the sole means by which the vehicle can be driven, the total traction power is the peak power of such storage system.
(D) Exclusion of plug-in vehicles
Any vehicle with respect to which a credit is allowable under section 30D (determined without regard to subsection (c) thereof) shall not be taken into account under this section.
(e) New qualified alternative fuel motor vehicle credit
(1) Allowance of credit
Except as provided in paragraph (5), the new qualified alternative fuel motor vehicle credit determined under this subsection is an amount equal to the applicable percentage of the incremental cost of any new qualified alternative fuel motor vehicle placed in service by the taxpayer during the taxable year.
(2) Applicable percentage
For purposes of paragraph (1), the applicable percentage with respect to any new qualified alternative fuel motor vehicle is—
(A) 50 percent, plus
(B) 30 percent, if such vehicle—
(i) has received a certificate of conformity under the Clean Air Act and meets or exceeds the most stringent standard available for certification under the Clean Air Act for that make and model year vehicle (other than a zero emission standard), or
(ii) has received an order certifying the vehicle as meeting the same requirements as vehicles which may be sold or leased in California and meets or exceeds the most stringent standard available for certification under the State laws of California (enacted in accordance with a waiver granted under section 209(b) of the Clean Air Act) for that make and model year vehicle (other than a zero emission standard).
For purposes of the preceding sentence, in the case of any new qualified alternative fuel motor vehicle which weighs more than 14,000 pounds gross vehicle weight rating, the most stringent standard available shall be such standard available for certification on the date of the enactment of the Energy Tax Incentives Act of 2005.
(3) Incremental cost
For purposes of this subsection, the incremental cost of any new qualified alternative fuel motor vehicle is equal to the amount of the excess of the manufacturer's suggested retail price for such vehicle over such price for a gasoline or diesel fuel motor vehicle of the same model, to the extent such amount does not exceed—
(A) $5,000, if such vehicle has a gross vehicle weight rating of not more than 8,500 pounds,
(B) $10,000, if such vehicle has a gross vehicle weight rating of more than 8,500 pounds but not more than 14,000 pounds,
(C) $25,000, if such vehicle has a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and
(D) $40,000, if such vehicle has a gross vehicle weight rating of more than 26,000 pounds.
(4) New qualified alternative fuel motor vehicle
For purposes of this subsection—
(A) In general
The term "new qualified alternative fuel motor vehicle" means any motor vehicle—
(i) which is only capable of operating on an alternative fuel,
(ii) the original use of which commences with the taxpayer,
(iii) which is acquired by the taxpayer for use or lease, but not for resale, and
(iv) which is made by a manufacturer.
(B) Alternative fuel
The term "alternative fuel" means compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, and any liquid at least 85 percent of the volume of which consists of methanol.
(5) Credit for mixed-fuel vehicles
(A) In general
In the case of a mixed-fuel vehicle placed in service by the taxpayer during the taxable year, the credit determined under this subsection is an amount equal to—
(i) in the case of a 75/25 mixed-fuel vehicle, 70 percent of the credit which would have been allowed under this subsection if such vehicle was a qualified alternative fuel motor vehicle, and
(ii) in the case of a 90/10 mixed-fuel vehicle, 90 percent of the credit which would have been allowed under this subsection if such vehicle was a qualified alternative fuel motor vehicle.
(B) Mixed-fuel vehicle
For purposes of this subsection, the term "mixed-fuel vehicle" means any motor vehicle described in subparagraph (C) or (D) of paragraph (3), which—
(i) is certified by the manufacturer as being able to perform efficiently in normal operation on a combination of an alternative fuel and a petroleum-based fuel,
(ii) either—
(I) has received a certificate of conformity under the Clean Air Act, or
(II) has received an order certifying the vehicle as meeting the same requirements as vehicles which may be sold or leased in California and meets or exceeds the low emission vehicle standard under section 88.105–94 of title 40, Code of Federal Regulations, for that make and model year vehicle,
(iii) the original use of which commences with the taxpayer,
(iv) which is acquired by the taxpayer for use or lease, but not for resale, and
(v) which is made by a manufacturer.
(C) 75/25 mixed-fuel vehicle
For purposes of this subsection, the term "75/25 mixed-fuel vehicle" means a mixed-fuel vehicle which operates using at least 75 percent alternative fuel and not more than 25 percent petroleum-based fuel.
(D) 90/10 mixed-fuel vehicle
For purposes of this subsection, the term "90/10 mixed-fuel vehicle" means a mixed-fuel vehicle which operates using at least 90 percent alternative fuel and not more than 10 percent petroleum-based fuel.
(f) Limitation on number of new qualified hybrid and advanced lean-burn technology vehicles eligible for credit
(1) In general
In the case of a qualified vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (c) or (d) shall be allowed.
(2) Phaseout period
For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of qualified vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2005, is at least 60,000.
(3) Applicable percentage
For purposes of paragraph (1), the applicable percentage is—
(A) 50 percent for the first 2 calendar quarters of the phaseout period,
(B) 25 percent for the 3d and 4th calendar quarters of the phaseout period, and
(C) 0 percent for each calendar quarter thereafter.
(4) Controlled groups
(A) In general
For purposes of this subsection, all persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single manufacturer.
(B) Inclusion of foreign corporations
For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof.
(5) Qualified vehicle
For purposes of this subsection, the term "qualified vehicle" means any new qualified hybrid motor vehicle (described in subsection (d)(2)(A)) and any new advanced lean burn technology motor vehicle.
(g) 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.
(h) Other definitions and special rules
For purposes of this section—
(1) 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.
(2) City fuel economy
The city fuel economy with respect to any vehicle shall be measured in a manner which is substantially similar to the manner city fuel economy is measured in accordance with procedures under part 600 of subchapter Q of chapter I of title 40, Code of Federal Regulations, as in effect on the date of the enactment of this section.
(3) Other terms
The terms "automobile", "passenger automobile", "medium duty passenger vehicle", "light truck", and "manufacturer" 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 (
(4) Reduction in basis
For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (g)).
(5) No double benefit
The amount of any deduction or other credit allowable under this chapter—
(A) for any incremental cost taken into account in computing the amount of the credit determined under subsection (e) shall be reduced by the amount of such credit attributable to such cost, and
(B) with respect to a vehicle described under subsection (b) or (c), shall be reduced by the amount of credit allowed under subsection (a) for such vehicle for the taxable year.
(6) Property used by tax-exempt entity
In the case of a vehicle whose use is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (g)). For purposes of subsection (g), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.
(7) Property used outside United States, etc., not qualified
No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.
(8) Recapture
The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit (including recapture in the case of a lease period of less than the economic life of a vehicle).,1 except that no benefit shall be recaptured if such property ceases to be eligible for such credit by reason of conversion to a qualified plug-in electric drive motor vehicle.
(9) Election to not take credit
No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.
(10) Interaction with air quality and motor vehicle safety standards
Unless otherwise provided in this section, a motor vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with—
(A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the Clean Air Act), and
(B) the motor vehicle safety provisions of
(i) Plug-in conversion credit
(1) In general
For purposes of subsection (a), the plug-in conversion credit determined under this subsection with respect to any motor vehicle which is converted to a qualified plug-in electric drive motor vehicle is 10 percent of so much of the cost of the converting such vehicle as does not exceed $40,000.
(2) Qualified plug-in electric drive motor vehicle
For purposes of this subsection, the term "qualified plug-in electric drive motor vehicle" means any new qualified plug-in electric drive motor vehicle (as defined in section 30D, determined without regard to whether such vehicle is made by a manufacturer or whether the original use of such vehicle commences with the taxpayer).
(3) Credit allowed in addition to other credits
The credit allowed under this subsection shall be allowed with respect to a motor vehicle notwithstanding whether a credit has been allowed with respect to such motor vehicle under this section (other than this subsection) in any preceding taxable year.
(4) Termination
This subsection shall not apply to conversions made after December 31, 2011.
(j) Regulations
(1) In general
Except as provided in paragraph (2), the Secretary shall promulgate such regulations as necessary to carry out the provisions of this section.
(2) Coordination in prescription of certain regulations
The Secretary of the Treasury, in coordination with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall prescribe such regulations as necessary to determine whether a motor vehicle meets the requirements to be eligible for a credit under this section.
(k) Termination
This section shall not apply to any property purchased after—
(1) in the case of a new qualified fuel cell motor vehicle (as described in subsection (b)), December 31, 2014,
(2) in the case of a new advanced lean burn technology motor vehicle (as described in subsection (c)) or a new qualified hybrid motor vehicle (as described in subsection (d)(2)(A)), December 31, 2010,
(3) in the case of a new qualified hybrid motor vehicle (as described in subsection (d)(2)(B)), December 31, 2009, and
(4) in the case of a new qualified alternative fuel vehicle (as described in subsection (e)), December 31, 2010.
(Added
References in Text
The Clean Air Act, referred to in text, is act July 14, 1955, ch. 360,
The date of the enactment of this section, referred to in subsecs. (b)(3)(B) and (h)(2), is the date of enactment of
The date of the enactment of the Energy Tax Incentives Act of 2005, referred to in subsec. (e)(2), is the date of enactment of title XIII of
Amendments
2013—Subsec. (g)(2).
2010—Subsec. (g)(2)(B)(ii).
2009—Subsec. (a)(5).
Subsec. (d)(3)(D).
Subsec. (g)(2).
"(A) the regular tax liability (as defined in section 26(b)) reduced by the sum of the credits allowable under subpart A and sections 27 and 30, over
"(B) the tentative minimum tax for the taxable year."
Subsec. (h)(1).
Subsec. (h)(8).
Subsecs. (i) to (k).
2008—Subsec. (d)(3)(D).
2005—Subsec. (g)(2)(A).
Subsec. (h)(6).
Effective Date of 2013 Amendment
Amendment by
Effective and Termination Dates of 2010 Amendment
Amendment by
Amendment by
Effective Date of 2009 Amendment
Amendment by section 1142(b)(2) of
Amendment by section 1144(a) of
Effective Date of 2008 Amendment
Amendment by
Effective Date of 2005 Amendment
Amendment by section 402(j) of
Effective Date
§30C. Alternative fuel vehicle refueling property credit
(a) Credit allowed
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the cost of any qualified alternative fuel vehicle refueling property placed in service by the taxpayer during the taxable year.
(b) Limitation
The credit allowed under subsection (a) with respect to all qualified alternative fuel vehicle refueling property placed in service by the taxpayer during the taxable year at a location shall not exceed—
(1) $30,000 in the case of a property of a character subject to an allowance for depreciation, and
(2) $1,000 in any other case.
(c) Qualified alternative fuel vehicle refueling property
For purposes of this section, the term "qualified alternative fuel vehicle refueling property" has the same meaning as the term "qualified clean-fuel vehicle refueling property" would have under section 179A if—
(1) paragraph (1) of section 179A(d) did not apply to property installed on property which is used as the principal residence (within the meaning of section 121) of the taxpayer, and
(2) only the following were treated as clean-burning fuels for purposes of section 179A(d):
(A) Any fuel at least 85 percent of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquified natural gas, liquefied petroleum gas, or hydrogen.
(B) Any mixture—
(i) which consists of two or more of the following: biodiesel (as defined in section 40A(d)(1)), diesel fuel (as defined in section 4083(a)(3)), or kerosene, and
(ii) at least 20 percent of the volume of which consists of biodiesel (as so defined) determined without regard to any kerosene in such mixture.
(C) Electricity.
(d) 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
The credit allowed under subsection (a) (after the application of paragraph (1)) for any taxable year shall not exceed the excess (if any) of—
(A) the regular tax liability (as defined in section 26(b)) reduced by the sum of the credits allowable under subpart A and section 27, over
(B) the tentative minimum tax for the taxable year.
(e) Special rules
For purposes of this section—
(1) Basis reduction
The basis of any property shall be reduced by the portion of the cost of such property taken into account under subsection (a).
(2) Property used by tax-exempt entity
In the case of any qualified alternative fuel vehicle refueling property the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such property to the person or entity using such property shall be treated as the taxpayer that placed such property in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such property (determined without regard to subsection (d)). For purposes of subsection (d), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.
(3) Property used outside United States not qualified
No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.
(4) Election not to take credit
No credit shall be allowed under subsection (a) for any property if the taxpayer elects not to have this section apply to such property.
(5) Recapture rules
Rules similar to the rules of section 179A(e)(4) shall apply.
(6) Special rule for property placed in service during 2009 and 2010
In the case of property placed in service in taxable years beginning after December 31, 2008, and before January 1, 2011—
(A) in the case of any such property which does not relate to hydrogen—
(i) subsection (a) shall be applied by substituting "50 percent" for "30 percent",
(ii) subsection (b)(1) shall be applied by substituting "$50,000" for "$30,000", and
(iii) subsection (b)(2) shall be applied by substituting "$2,000" for "$1,000", and
(B) in the case of any such property which relates to hydrogen, subsection (b)(1) shall be applied by substituting "$200,000" for "$30,000".
(f) Regulations
The Secretary shall prescribe such regulations as necessary to carry out the provisions of this section.
(g) Termination
This section shall not apply to any property placed in service—
(1) in the case of property relating to hydrogen, after December 31, 2014, and
(2) in the case of any other property, after December 31, 2013.
(Added
Amendments
2013—Subsec. (g)(2).
2010—Subsec. (g)(2).
2009—Subsec. (d)(2)(A).
Subsec. (e)(6).
2008—Subsec. (c)(2)(C).
Subsec. (g)(2).
2007—Subsec. (b).
Subsec. (c).
"(1)
"(A) at least 85 percent of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen, or
"(B) any mixture of biodiesel (as defined in section 40A(d)(1)) and diesel fuel (as defined in section 4083(a)(3)), determined without regard to any use of kerosene and containing at least 20 percent biodiesel.
"(2)
2005—Subsec. (d)(2)(A).
Subsec. (e)(2).
Effective Date of 2013 Amendment
Effective Date of 2010 Amendment
Effective Date of 2009 Amendment
Amendment by section 1142(b)(3) of
Amendment by section 1144(b)(2) of
Effective Date of 2008 Amendment
Effective Date of 2007 Amendment
"(1)
"(2)
"(3)
Effective Date of 2005 Amendment
Amendment by section 402(k) of
Effective Date
§30D. New qualified plug-in electric drive motor vehicles
(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 qualified plug-in electric drive motor 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 qualified plug-in electric drive motor vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle.
(2) Base amount
The amount determined under this paragraph is $2,500.
(3) Battery capacity
In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $417, plus $417 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $5,000.
(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 qualified plug-in electric drive motor vehicle
For purposes of this section—
(1) In general
The term "new qualified plug-in electric drive motor 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 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, and
(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 4 kilowatt hours, and
(ii) is capable of being recharged from an external source of electricity.
(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) Manufacturer
The term "manufacturer" has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (
(4) Battery capacity
The term "capacity" means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge.
(e) Limitation on number of new qualified plug-in electric drive motor vehicles eligible for credit
(1) In general
In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed.
(2) Phaseout period
For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000.
(3) Applicable percentage
For purposes of paragraph (1), the applicable percentage is—
(A) 50 percent for the first 2 calendar quarters of the phaseout period,
(B) 25 percent for the 3d and 4th calendar quarters of the phaseout period, and
(C) 0 percent for each calendar quarter thereafter.
(4) Controlled groups
Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.
(f) Special rules
(1) Basis reduction
For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed.
(2) No double benefit
The amount of any deduction or other credit allowable under this chapter for a vehicle for which a credit is allowable under subsection (a) shall be reduced by the amount of credit allowed under such subsection for such vehicle.
(3) Property used by tax-exempt entity
In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)).
(4) Property used outside United States not qualified
No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1).
(5) Recapture
The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.
(6) Election not to take credit
No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.
(7) Interaction with air quality and motor vehicle safety standards
A vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with—
(A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the Clean Air Act), and
(B) the motor vehicle safety provisions of
(g) Credit allowed for 2- and 3-wheeled plug-in electric vehicles
(1) In general
In the case of a qualified 2- or 3-wheeled plug-in electric vehicle—
(A) 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 applicable amount with respect to each such qualified 2- or 3-wheeled plug-in electric vehicle placed in service by the taxpayer during the taxable year, and
(B) the amount of the credit allowed under subparagraph (A) shall be treated as a credit allowed under subsection (a).
(2) Applicable amount
For purposes of paragraph (1), the applicable amount is an amount equal to the lesser of—
(A) 10 percent of the cost of the qualified 2- or 3-wheeled plug-in electric vehicle, or
(B) $2,500.
(3) Qualified 2- or 3-wheeled plug-in electric vehicle
The term "qualified 2- or 3-wheeled plug-in electric vehicle" means any vehicle which—
(A) has 2 or 3 wheels,
(B) meets the requirements of subparagraphs (A), (B), (C), (E), and (F) of subsection (d)(1) (determined by substituting "2.5 kilowatt hours" for "4 kilowatt hours" in subparagraph (F)(i)),
(C) is manufactured primarily for use on public streets, roads, and highways,
(D) is capable of achieving a speed of 45 miles per hour or greater, and
(E) is acquired after December 31, 2011, and before January 1, 2014.
(Added
References in Text
The Clean Air Act, referred to in subsecs. (d)(1)(D), (3), (f)(7)(A), is act July 14, 1955, ch. 360,
Amendments
2013—Subsec. (c)(2).
Subsec. (f)(2).
Subsec. (f)(7).
Subsec. (g).
2010—Subsec. (c)(2)(B)(ii).
2009—
Effective Date of 2013 Amendment
Amendment by section 104(c)(2)(I) of
Effective and Termination Dates of 2010 Amendment
Amendment by
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date
Section applicable to taxable years beginning after Dec. 31, 2008, see section 205(e) of