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American Subsidies for American Autos Act of 2024

S. 3869 · 118th Congress · Mar 5, 2024 · Lineage

A BILL

To require vehicles to comply with the rules of origin of the United States-Mexico-Canada Agreement in order to qualify for certain Federal programs.

Section 1 Short title

This Act may be cited as the “American Subsidies for American Autos Act of 2024”.

Sec. 2 Requirement for vehicles to comply with United States-Mexico-Canada Agreement to qualify for certain Federal programs

(a)
Tax credits for clean vehicles—
(1)
Clean vehicle credit— Section 30D(d) of the Internal Revenue Code of 1986 is amended—
(A)
in paragraph (1)(G), by striking “the final assembly of which occurs within North America” and inserting “which qualifies as an originating good under section 202 of the United States-Mexico-Canada Agreement Implementation Act (19 U.S.C. 4531)”, and
(B)
by striking paragraph (5).
(2)
Credit for qualified commercial clean vehicles— Paragraph (1) of section 45W(c) of such Code is amended by striking “section 30D(d)(1)(C)” and inserting “subparagraphs (C) and (G) of section 30D(d)(1)”.
(3)
Previously-owned clean vehicles— Clause (i) of section 25E(c)(1)(D) of such Code is amended by inserting “(G),” after “(F),”.
(4)
Effective date— The amendments made by this subsection shall apply to vehicles acquired after the date of the enactment of this Act.
(b)
Public school energy improvement program— Section 40541(f) of the Investment Infrastructure and Jobs Act (42 U.S.C. 18831(f)) is amended by adding at the end the following:

“(5) USMCA-compliant vehicle requirement

“(A) Definition of USMCA-compliant vehicle—In this paragraph, the term “USMCA-compliant vehicle” means a vehicle that qualifies as an originating good under section 202 of the United States-Mexico-Canada Agreement Implementation Act (19 U.S.C. 4531).

“(B) Requirement—Any alternative fueled vehicle purchased using a grant under this section shall be required to be a USMCA-compliant vehicle.”

(c)
State energy program— Section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322) is amended by adding at the end the following:

“(h) USMCA-Compliant vehicle requirement

“(1) Definition of USMCA-compliant vehicle—In this subsection, the term “USMCA-compliant vehicle” means a vehicle that qualifies as an originating good under section 202 of the United States-Mexico-Canada Agreement Implementation Act (19 U.S.C. 4531).

“(2) Requirement—Subject to paragraph (3), any vehicle purchased as part of a State energy conservation plan shall be required to be a USMCA-compliant vehicle.

“(3) More stringent State law—The requirement under paragraph (2) shall not apply in the case of a State energy conservation plan that requires vehicles purchased under the plan to be produced in the United States.”

(d)
Bus and bus facilities grant program— Section 5339(b) of title 49, United States Code, is amended by adding at the end the following:

“(12) USMCA requirement

“(A) USMCA-compliant vehicle—In this paragraph, the term USMCA-compliant vehicle means a vehicle that qualifies as an originating good under section 202 of the United States-Mexico-Canada Agreement Implementation Act (19 U.S.C. 4531).

“(B) Requirement—Any bus replaced, purchased, or leased using a grant under this subsection shall be a USMCA-compliant vehicle.”

(e)
Low or no emission public transportation funding program— Section 5339(c) of title 49, United States Code, is amended by adding at the end the following:

“(9) USMCA requirement

“(A) USMCA-compliant vehicle—In this paragraph, the term USMCA-compliant vehicle means a vehicle that qualifies as an originating good under section 202 of the United States-Mexico-Canada Agreement Implementation Act (19 U.S.C. 4531).

“(B) Requirement—Any vehicle acquired or leased using a grant under this subsection shall be a USMCA-compliant vehicle.”

(f)
Clean school bus program— Section 741(a) of the Energy Policy Act of 2005 (42 U.S.C. 16091(a)) is amended—
(1)
in paragraph (3)—
(A)
by redesignating subparagraph (B) as clause (ii);
(B)
in subparagraph (A), by striking “(A) the Administrator” and inserting the following:

“(B)

“(i) the Administrator”

(C)
by inserting before subparagraph (B) (as so redesignated) the following:

“(A) qualifies as an originating good under section 202 of the United States-Mexico-Canada Agreement Implementation Act (19 U.S.C. 4531); and”

(2)
in paragraph (8)—
(A)
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting appropriately; and
(B)
in the matter preceding clause (i) (as so redesignated), by striking “that is certified” and inserting the following:

“(A) qualifies as an originating good under section 202 of the United States-Mexico-Canada Agreement Implementation Act (19 U.S.C. 4531); and

“(B) is certified”

(g)
Clean heavy-Duty vehicles program— Section 132(d)(5) of the Clean Air Act (42 U.S.C. 7432(d)(5)) is amended—
(1)
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting appropriately; and
(2)
in the matter preceding clause (i) (as so redesignated), by striking “vehicle that has” and inserting the following:

“(A) qualifies as an originating good under section 202 of the United States-Mexico-Canada Agreement Implementation Act (19 U.S.C. 4531); and

“(B) has”