text: 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.
target: 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.
feat_title: Buy American Motor Vehicles Act of 1993