EXEMPTION OF ELECTRIC AND OTHER CLEAN-FUEL MOTOR VEHICLES FROM LUXURY AUTOMOBILE CLASSIFICATION.

SEC. 906. EXEMPTION OF ELECTRIC AND OTHER CLEAN-FUEL MOTOR VEHICLES FROM LUXURY AUTOMOBILE CLASSIFICATION. (a) In General.—Subsection (a) of section 4001 (relating to imposition of tax) is amended to read as follows: “(a) Imposition of Tax.— “(1) In general.—There is hereby imposed on the 1st retail sale of any passenger vehicle a tax equal to 10 percent of the price for which so sold to the extent such price exceeds the applicable amount. “(2) Applicable amount.— “(A) In general.—Except as provided in subparagraphs (B) and (C), the applicable amount is $30,000. “(B) Qualified clean-fuel vehicle property.—In the case of a passenger vehicle which is propelled by a fuel which is not a clean-burning fuel and to which is installed qualified clean-fuel vehicle property (as defined in section 179A(c)(1)(A)) for purposes of permitting such vehicle to be propelled by a clean-burning fuel, the applicable amount is equal to the sum of— “(i) the dollar amount in effect under subparagraph (A), plus “(ii) the increase in the price for which the passenger vehicle was sold (within the meaning of section 4002) due to the installation of such property. “(C) Purpose built passenger vehicle.— “(i) In general.—In the case of a purpose built passenger vehicle, the applicable amount is equal to 150 percent of the dollar amount in effect under subparagraph (A). “(ii) Purpose built passenger vehicle.—For purposes of clause (i), the term ‘purpose built passenger vehicle’ means a passenger vehicle produced by an original equipment manufacturer and designed so that the vehicle may be propelled primarily by electricity.”.111 STAT. 875 (b) Conforming Amendments.— (1) Subsection (e) of section 4001 (relating to inflation adjustment) is amended by striking “and section 4003(a)”. (2) Subsection (f) of section 4001 (relating to phasedown) is amended by striking “subsection (a)” and inserting “subsection (a)(1)”. (3) Subparagraph (A) of section 4003(a)(1) is amended by inserting “(other than property described in section 4001(a)(2)(B))” after “part or accessory”. (4) Subparagraph (B) of section 4003(a)(2) is amended to read as follows: “(B) the appropriate applicable amount as determined under section 4001(a)(2).”. (c) Effective Date.—The amendments made by this section shall apply to sales and installations occurring after the date of note the enactment of this Act.