Page:United States Statutes at Large Volume 92 Part 3.djvu/551

 PUBLIC LAW 9 5 - 6 1 8 — N O V. 9, 1978

92 STAT. 3 1 8 3

case may be. The alternate rate schedule shall be based on the maximum feasible fuel economy level which such manufacturer can meet for such model year with respect to all automobiles or with respect to such model type, as the case may be. "(2)

APPLICATION TO INCLUDE NECESSARY INFORMATION.—An

application under this subsection for any model year shall contain such information as the Secretary may by regulations prescribe. "(3)

DETERMINATIONS TO BE MADE ONLY AFTER CONSULTATION.—

Determinations under paragraph (1) shall be made by the Secretary only after consultation with the Secretary of Energy, the Secretary of Transportation, and other appropriate Federal officers. " (4) S M A L L MANUFACTURER DEFINED.—

" (A) IN GENERAL.—For purposes of this subsection, the term ' s m a l l m a n u f a c t u r e r ' means any manufacturer— " (i) who manufactured (whether or not in the United States) fewer than 10,000 automobiles in the second model year preceding the model year for which the determination under paragraph (1) is being made, and " ( i i) who can reasonably be expected to manufacture (whether or not in the United States) fewer than 10,000 automobiles in the model year for which the determination under paragraph (1) is being made. " (B) SPECIAL RULES.—For purposes of subparagraph (A)" (i) M A N U F ACT U R E R OF AUTOMOBILES PRODUCED ABROAD DETERMINED WITHOUT REGARD TO IMPORTATION. The

meaning of the term 'manufacturer' shall be determined without regard to subsection (b)(5). " ( i i) CONTROLLED GROUPS.—Persons who are members

of the same controlled g r o u p of corporations shall be treated as one manufacturer. For purposes of the preceding sentence, the term 'controlled group of corporations' has the meaning given to such term by section 1 5 6 3 (a); except that 'more than 50 percent' shall be sub- 26 USC 1563. stituted for 'at least 80 percent' each place it appears in section 1563(a)." (b)

REDUCTION I N B A S I S OF AUTOMOBILE ON W H I C H G A S GUZZLER

T A X W A S IMPOSED.—Section 1016 (relating to adjustments to basis) is 26 USC 1016. amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: " (d) REDUCTION I N BASIS OF AUTOMOBILE ON W H I C H G A S GUZZLER T A X W A S IMPOSED.—If—

" (1) the tax p a y e r acquires any automobile with respect to which a tax was imposed by section 4064, and Ante, p. 3180. " (2) the use of such automobile by the taxpayer begins not more than 1 year after the date of the Jfirst sale for ultimate use of such automobile, the basis of such automobile shall be reduced by the amount of the tax imposed by section 4064 with respect to such automobile. I n the case of importation, if the date of entry or withdrawal from warehouse for consumption is later than the date of the first sale for ultimate use, such later date shall be substituted for the date of such first sale in the preceding sentence." (c) D E N I A L OF CERTAIN EXEMPTIONS AND R E F U N D S. —

(1) TAX-FREE SALES.—Subsection (a) of section 4221 (relating to certain tax-free sales) is amended by adding at the end thereof the following new sentence:

26 USC 4221.

�