article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Oil Independence, Limiting Subsidies, and Accelerating Vehicle Efficiency (OILSAVE) Act''. SEC. 2. TAX CREDIT FOR FUEL-EFFICIENT MOTOR VEHICLES. (a) In General.--Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to other credits) is amended by inserting after section 30C the following new section: ``SEC. 30D. FUEL-EFFICIENT MOTOR VEHICLE CREDIT. ``(a) Allowance of Credit.--There shall be allowed a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable amount for each new qualified fuel-efficient motor vehicle placed in service by the taxpayer during the taxable year. ``(b) New Qualified Fuel-Efficient Motor Vehicle.--For purposes of this section, the term `new qualified fuel-efficient motor vehicle' means a motor vehicle (as defined under section 30(c)(2))-- ``(1) which is a passenger automobile or a light truck, ``(2) which-- ``(A) in the case of a passenger automobile, achieves a fuel economy of not less than 34.5 miles per gallon, and ``(B) in the case of a light truck, achieves a fuel economy of not less than 27.5 miles per gallon, ``(3) the original use of which commences with the taxpayer, ``(4) which is acquired for use or lease by the taxpayer and not for resale, and ``(5) which is made by a manufacturer for model year 2007, 2008, 2009, 2010, or 2011. ``(c) Applicable Amount.--For purposes of this section, the applicable amount shall be determined as follows: ------------------------------------------------------------------------ In the case of a In the case passenger of a light ``If the motor vehicle achieves a fuel economy automobile, truck, the of: the applicable applicable amount is: amount is: ------------------------------------------------------------------------ 27.5 miles per gallon......................... $0 $630 28.5.......................................... 0 710 29.5.......................................... 0 780 30.5.......................................... 0 850 31.5.......................................... 0 920 32.5.......................................... 0 980 33.5.......................................... 0 1,040 34.5.......................................... 630 1.090 35.5.......................................... 700 1,140 36.5.......................................... 760 1,190 37.5.......................................... 820 1,240 38.5.......................................... 880 1,280 39.5.......................................... 940 1,320 40.5.......................................... 990 1,360 41.5.......................................... 1,040 1,400 42.5.......................................... 1,090 1,430 43.5.......................................... 1,140 1,470 44.5.......................................... 1,180 1,500 45.5.......................................... 1,220 1,530 46.5.......................................... 1,260 1,560 47.5.......................................... 1,300 1,590 48.5.......................................... 1,340 1,620 49.5.......................................... 1,370 1,640 50.5.......................................... 1,410 1,670 51.5.......................................... 1,440 1,690 52.5.......................................... 1,470 1,720 53.5.......................................... 1,500 1,740 54.5.......................................... 1,530 1,760 55.5.......................................... 1,560 1,780 56.5.......................................... 1,590 1,800 57.5.......................................... 1,610 1,820 58.5.......................................... 1,640 1,840 59.5 or more.................................. 1,660 1,860 ------------------------------------------------------------------------ ``(d) Other Definitions and Special Rules.--For purposes of this section-- ``(1) Fuel economy.--The term `fuel economy' has the meaning given such term under section 32901(a)(10) of title 49, United States Code. ``(2) Model year.--The term `model year' has the meaning given such term under section 32901(a)(14) of such title. ``(3) Other terms.--The terms `passenger automobile', `light truck', and `manufacturer' have the meaning 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. ``(5) No double benefit.-- ``(A) Coordination with other vehicle credits.--No credit shall be allowed under subsection (a) with respect to any new qualified fuel-efficient motor vehicle for any taxable year if a credit is allowed with respect to such motor vehicle for such taxable year under section 30 or 30B. ``(B) Other tax benefits.--The amount of any deduction or credit (other than the credit allowable under this section and any credit described in subparagraph (A)) allowable under this chapter with respect to any new qualified fuel-efficient motor vehicle shall be reduced by the amount of credit allowed under subsection (a) for such motor vehicle for such taxable year. ``(6) Property used outside the 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. ``(7) Election not to take credit.--No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects not to have this section apply to such vehicle. ``(8) 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 sections 30101 through 30169 of title 49, United States Code. ``(e) Credit May Be Transferred.-- ``(1) In general.--A taxpayer may, in connection with the purchase of a new qualified fuel-efficient motor vehicle, transfer any credit allowable under subsection (a) to any person who is in the trade or business of selling new qualified fuel-efficient motor vehicles, but only if such person clearly discloses to such taxpayer, through the use of a window sticker attached to the new qualified fuel-efficient vehicle-- ``(A) the amount of any credit allowable under subsection (a) with respect to such vehicle, and ``(B) a notification that the taxpayer will not be eligible for any credit under section 30 or 30B with respect to such vehicle unless the taxpayer elects not to have this section apply with respect to such vehicle. ``(2) Consent required for revocation.--Any transfer under paragraph (1) may be revoked only with the consent of the Secretary. ``(3) Regulations.--The Secretary may prescribe such regulations as necessary to ensure that any credit described in paragraph (1) is claimed once and not retransferred by a transferee.''. (b) Conforming Amendments.-- (1) Section 1016(a) of the Internal Revenue Code of 1986 is amended by striking ``and'' at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting ``, and'', and by adding at the end the following new paragraph: ``(38) to the extent provided in section 30D(d)(4).''. (2) Section 6501(m) of such Code is amended by inserting ``30D(d)(7),'' after ``30C(e)(5),''. (3) The table of section for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 30C the following new item: ``Sec. 30D. Fuel-efficient motor vehicle credit.''. (c) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. SEC. 3. AMORTIZATION OF INTANGIBLE DRILLING AND DEVELOPMENT COSTS FOR MAJOR INTEGRATED OIL COMPANIES. (a) In General.--Subsection (i) of section 263 of the Internal Revenue Code of 1986 is amended-- (1) by striking ``Incurred Outside the United States'' in the heading, (2) by inserting ``or owned or operated by a major integrated oil company (as defined in section 167(h)(5)(B))'' after ``United States'', and (3) by inserting ``located outside the United States'' after ``nonproductive well'' in the last sentence thereof. (b) Effective Date.--The amendments made by this section shall apply to costs paid or incurred after the date of the enactment of this Act.
summary: Oil Independence, Limiting Subsidies, and Accelerating Vehicle Efficiency (OILSAVE) Act - Amends the Internal Revenue Code to allow a tax credit for the purchase of a new qualified fuel-efficient motor vehicle. Defines "new qualified fuel-efficient motor vehicle" as a passenger automobile with a fuel economy rating of not less than 34.5 miles per gallon or a light truck with a 27.5 miles per gallon rating which are manufactured for model years 2007-2011. Denies major integrated oil companies (companies with an average daily production of crude oil of at least 500,000 barrels and gross receipts in excess of $1 billion for a taxable year) the option to expense intangible drilling and development costs.