article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Buy American Motor Vehicles Act of 1993''. SEC. 2. STATEMENT OF PURPOSE. It is the purpose of this Act to stimulate economic growth by encouraging the purchase of new domestic passenger vehicles through the provision of a temporary tax credit, which a purchaser may assign in exchange for an equal reduction in the purchase price of the vehicle from the amount such price would have been if this Act had not been enacted. SEC. 3. TEMPORARY REFUNDABLE CREDIT FOR PURCHASE OF NEW DOMESTIC PASSENGER VEHICLES. (a) In General.--Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by redesignating section 35 as section 36 and by inserting after section 34 the following new section: ``SEC. 35. PURCHASE OF NEW DOMESTIC PASSENGER VEHICLE. ``(a) Allowance of Credit.-- ``(1) In general.--In the case of an individual who purchases a new domestic passenger vehicle, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year in which the purchase is made an amount equal to the applicable percentage of the purchase price of the vehicle. ``(2) Applicable percentage.--For purposes of paragraph (1), the applicable percentage is-- ``(A) 15 percent, in the case of a vehicle purchased in calendar year 1993, and ``(B) 7.5 percent, in the case of a vehicle purchased in calendar year 1994. ``(3) Limitation.--The credit allowed by paragraph (1) for any taxpayer shall not exceed-- ``(A) $2,000, in the case of taxable years ending on or before December 31, 1993, and ``(B) $1,000, in the case of taxable years ending after such date. ``(b) Assignment of Credit.--Under regulations prescribed by the Secretary-- ``(1) an individual qualifying for a credit under subsection (a) may, at the time of purchase of the vehicle, assign the right to the credit to the retail dealer from whom the vehicle is purchased in exchange for a purchase price reduction of equal value, ``(2) such retail dealer may assign such right to the manufacturer of the vehicle, and ``(3) such manufacturer shall be allowed to use such credit against the tax imposed by this chapter on such manufacturer. ``(c) New Domestic Passenger Vehicle.--For purposes of this section-- ``(1) In general.--The term `new domestic passenger vehicle' means any domestic vehicle which-- ``(A) is a passenger vehicle (within the meaning of section 4001(b)), and ``(B) is purchased by the taxpayer in the 1st retail sale of the vehicle (within the meaning of section 4001(a)). ``(2) Domestic vehicle.--The term `domestic vehicle' means any vehicle if-- ``(A) the vehicle is produced by a domestic vehicle manufacturer at a manufacturing facility located within the United States or Canada, and ``(B) such manufacturer includes on the label required by section 3 of the Automobile Information Disclosure Act (15 U.S.C. 1232) information concerning-- ``(i) whether the vehicle is a domestic vehicle eligible for the credit allowed by this section, and ``(ii) the percentage of the value of all parts used in the production of the vehicle which is attributable to parts produced by domestic parts manufacturers. ``(3) Domestic manufacturers.-- ``(A) Domestic vehicle manufacturer.--The term `domestic vehicle manufacturer' means a manufacturer (whether or not a related source) of motor vehicles which-- ``(i) has 1 or more motor vehicle manufacturing facilities located within the United States which produce motor vehicles for interstate sale or export, or both, and (ii) with respect to its production of motor vehicles in the facilities referred to in clause (i) during the most recently completed calendar year, utilized motor vehicle parts produced by domestic manufacturers which constituted 60 percent or more of the total value of all motor vehicle parts used in such production. ``(B) Domestic parts manufacturer.--The term `domestic parts manufacturer' means a manufacturer of motor vehicle parts which-- ``(i) has 1 or more motor vehicle parts manufacturing facilities located within the United States or Canada, and ``(ii) either-- ``(I) is not a related source, ``(II) is not affiliated with a related source, or ``(III) is affiliated with a related source, but with respect to its production of motor vehicle parts in the facilities referred to in clause (i) during the most recent full calendar year, utilized materials and components produced by, or purchased or otherwise obtained (directly or indirectly) from, related sources to an extent not exceeding 25 percent of the total value of such production. ``(4) Related sources, ownership, and affiliation.-- ``(A) Related source.--The term `related source' means-- ``(i) a natural person who is a citizen of Japan, and ``(ii) a corporation or other legal entity, wherever located, if owned or controlled by-- ``(I) natural persons who are citizens of Japan, or ``(II) another corporation or other legal entity which is owned or controlled by natural persons who are citizens of Japan, unless such corporation or other legal entity would qualify as a domestic parts manufacturer under paragraph (3)(B). ``(B) Own or control.--The term `own or control' means-- ``(i) in the case of a corporation, the holding of at least 50 percent (by vote or value) of the capital structure of the corporation, and ``(ii) in the case of any other kind of legal entity, the holding of interests representing at least 50 percent of the capital structure of the entity. ``(C) Affiliated.--A domestic parts manufacturer shall be considered to be affiliated with a related source if-- ``(i) in the case of a domestic parts manufacturer which is a corporation, a related source holds at least 2.5 percent but less than 50 percent (by vote or value) of the capital structure of the corporation, and ``(ii) in the case of a domestic parts manufacturer which is any other kind of legal entity, a related source holds interests representing at least 2.5 percent, but less than 50 percent, of the capital structure of the entity. ``(d) Definitions and Special Rules.--For purposes of this section-- ``(1) Purchase price.--Purchase price shall be determined under rules similar to the rules of section 4011(d)(1). ``(2) Value.--The term `value' when applied to-- ``(A) materials and components used in production of motor vehicles parts, or ``(B) motor vehicle parts used in the production of motor vehicles, refers to the cost of such materials, components, or parts to the manufacturer of such parts or vehicles as determined for purposes of applying this title (including, in the case of purchases of materials, components, and parts involving related sources, entities owned or controlled by related sources, or entities affiliated with related sources, determinations based on the application of the transfer price rules). ``(3) United states.--The term `United States' includes the Commonwealth of Puerto Rico and the possessions of the United States. ``(e) Regulations.--Not later than 60 days after the date of the enactment of this section, the Secretary shall prescribe any regulations appropriate to carry out the purposes of this section, including regulations to prevent the avoidance of any limitation or requirement of this section. ``(f) Termination.--This section shall not apply to any vehicle purchased after December 31, 1994.'' (b) Clerical Amendment.--The table of sections for such subpart C is amended by striking the item relating to section 35 and inserting the following new items: ``Sec. 35. Purchase of new domestic passenger vehicle. ``Sec. 36. Overpayments of tax.'' (c) Effective Date.--The amendments made by this section shall apply to vehicles purchased after December 31, 1992.
summary: Buy American Motor Vehicles Act of 1993 - Amends the Internal Revenue Code to allow a tax credit, for an individual who purchases a new domestic passenger vehicle, of: (1) 15 percent of the purchase price, in the case of a vehicle purchased in 1993; and (2) 7.5 percent, in the case of a vehicle purchased in 1994. Limits the credit to $2,000 in 1993 and $1,000 after such year. Allows an individual qualifying for such credit, at the time of such purchase, to assign the right to the credit to the retail dealer in exchange for a price reduction of equal value. Allows the retailer dealer to assign such right to the manufacturer of the vehicle. Allows manufacturers to use such credit against their tax liability. Defines a domestic parts manufacturer as one with manufacturing facilities within the United States or Canada and who is not Japanese or Japanese-affiliated.