SEC. 136402. CREDIT FOR PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELECTRIC
DRIVE MOTOR VEHICLES.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by
inserting after section 36C the following new section:
``SEC. 36D. PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
VEHICLES.
``(a) Allowance of Credit.--In the case of a qualified buyer who
during a taxable year places in service a previously-owned qualified
plug-in electric drive motor vehicle, there shall be allowed as a
credit against the tax imposed by this subtitle for the taxable year an
amount equal to the sum of--
``(1) $1,250, plus
``(2) in the case of a vehicle which draws propulsion
energy from a battery which exceeds 4 kilowatt hours of
capacity (determined at the time of sale), the lesser of--
``(A) $1,250, and
``(B) the product of $208.50 and such excess
kilowatt hours.
``(b) Limitations.--
``(1) Sale price.--The credit allowed under subsection (a)
with respect to sale of a vehicle shall not exceed 30 percent
of the sale price.
``(2) Adjusted gross income.--The amount which would (but
for this paragraph) be allowed as a credit under subsection (a)
shall be reduced (but not below zero) by $200 for each $1,000
(or fraction thereof) by which the taxpayer's adjusted gross
income exceeds--
``(A) $150,000 in the case of a joint return or a
surviving spouse (as defined in section 2(a)),
``(B) $112,500 in the case of a head of household
(as defined in section 2(b)), and
``(C) $75,000 in the case of a taxpayer not
described in paragraph (1) or (2).
``(c) Definitions.--For purposes of this section--
``(1) Previously-owned qualified plug-in electric drive
motor vehicle.--The term `previously-owned qualified plug-in
electric drive motor vehicle' means, with respect to a
taxpayer, a motor vehicle--
``(A) the model year of which is at least 2 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,
``(D) registered by the taxpayer for operation in a
State or possession of the United States, and
``(E) which meets the requirements of subparagraphs
(C), (D), (E), (F), and (G) of section 36C(e)(1).
``(2) Qualified sale.--The term `qualified sale' means a
sale of a motor vehicle--
``(A) by a seller who holds such vehicle in
inventory (within the meaning of section 471) for sale
or lease,
``(B) for a sale price not to exceed $25,000, and
``(C) which is the first transfer since the date of
the enactment of this section to a person 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,
``(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, and
``(E) who possesses a certificate issued by the
seller that certifies--
``(i) that the vehicle is a previously-
owned qualified plug-in electric drive motor
vehicle,
``(ii) the vehicle identification number of
such vehicle,
``(iii) the capacity of the battery at time
of sale, and
``(iv) such other information as the
Secretary may require.
``(4) Motor vehicle; capacity.--The terms `motor vehicle'
and `capacity' have the meaning given such terms in paragraphs
(2) and (4) of section 36C(e), 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 paragraphs (1), (2), (4), (5), (6) and
(7) of section 36C(f) shall apply for purposes of this section.
``(f) Certificate Submission Requirement.--The Secretary may
require that the issuer of the certificate described in subsection
(c)(3)(E) submit such certificate to the Secretary at the time and in
the manner required by the Secretary.
``(g) Treatment of Certain Possessions.--
``(1) Payments to possessions with mirror code tax
systems.--The Secretary shall pay to each possession of the
United States which has a mirror code tax system amounts equal
to the loss (if any) to that possession by reason of the
application of the provisions of this section. Such amounts
shall be determined by the Secretary based on information
provided by the government of the respective possession.
``(2) Payments to other possessions.--The Secretary shall
pay to each possession of the United States which does not have
a mirror code tax system amounts estimated by the Secretary as
being equal to the aggregate benefits (if any) that would have
been provided to residents of such possession by reason of the
provisions of this section if a mirror code tax system had been
in effect in such possession. The preceding sentence shall not
apply unless the respective possession has a plan which has
been approved by the Secretary under which such possession will
promptly distribute such payments to its residents.
``(3) Mirror code tax system; treatment of payments.--Rules
similar to the rules of paragraphs (4) and (5) of section 21(h)
shall apply for purposes of this section.
``(h) Termination.--No credit shall be allowed under this section
with respect to any vehicle acquired after December 31, 2031.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A), as amended by the preceding
provisions of this Act, is amended by inserting ``36D,'' after
``36C,''.
(2) Section 6213(g)(2), as amended by the preceding
provisions of this Act, is amended--
(A) in subparagraph (S), by striking ``and'' at the
end,
(B) in subparagraph (T), by striking the period at
the end and inserting ``, and'', and
(C) by adding at the end the following:
``(U) an omission of a correct vehicle
identification number required under section 36D(d)
(relating to credit for previously-owned qualified
plug-in electric drive motor vehicles) to be included
on a return.''.
(3) Paragraph (2) of section 1324(b) of title 31, United
States Code, as amended by the preceding provisions of this
Act, is amended by inserting ``36D,'' after ``36C,''.
(c) Clerical Amendment.--The table of sections for subpart C of
part IV of subchapter A of chapter 1, as amended by the preceding
provisions of this Act, is amended by inserting after the item relating
to section 36C the following new item:
``Sec. 36D. Previously-owned qualified plug-in electric drive motor
vehicles.''.
(d) Effective Date.--The amendments made by this section shall
apply to vehicles acquired after December 31, 2021.
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