text: 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.
target: 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.
feat_title: A bill to amend the Internal Revenue Code of 1986 to provide a credit for fuel-efficient motor vehicles and to require major integrated oil companies to amortize intangible drilling and development costs.