Overview

Title

To amend the Internal Revenue Code of 1986 to define the term free trade agreement for purposes of the clean vehicle credit.

ELI5 AI

H.R. 7983 is a plan to explain what counts as a "free trade agreement" for getting special money help when buying clean cars. It says only those deals where Congress agrees to lower money barriers will count.

Summary AI

H.R. 7983, titled the "Stop Executive Overreach on Trade Agreements Act," aims to modify the Internal Revenue Code of 1986. The bill seeks to clarify what qualifies as a "free trade agreement" when it comes to providing clean vehicle credits. It defines a free trade agreement as one approved by Congress that removes tariffs and other trade restrictions with other countries. This change will affect vehicles placed in service after the bill's enactment date.

Published

2024-12-17
Congress: 118
Session: 2
Chamber: HOUSE
Status: Reported in House
Date: 2024-12-17
Package ID: BILLS-118hr7983rh

Bill Statistics

Size

Sections:
2
Words:
424
Pages:
4
Sentences:
12

Language

Nouns: 137
Verbs: 37
Adjectives: 19
Adverbs: 1
Numbers: 25
Entities: 27

Complexity

Average Token Length:
4.13
Average Sentence Length:
35.33
Token Entropy:
4.66
Readability (ARI):
19.15

AnalysisAI

General Summary of the Bill

The legislative proposal under discussion seeks to amend the Internal Revenue Code of 1986. Specifically, it introduces a definition for "free trade agreement" in the context of clean vehicle credits. According to the bill, a free trade agreement should be understood as any international agreement which has received Congressional approval and removes trade barriers and duties on nearly all trade between the United States and one or more other countries. The bill is also known as the “Stop Executive Overreach on Trade Agreements Act.” It sets terms that apply to vehicles that begin being used after the law is enacted.

Summary of Significant Issues

The bill presents several points for consideration:

  1. Clarity on Agreement Evaluation: The definition of a free trade agreement requires Congressional approval but does not establish specific criteria or guidelines for evaluating these agreements. This ambiguity could result in inconsistent applications.

  2. Impact on Existing Agreements: The bill is silent on how it affects existing free trade agreements. This lack of clarity might lead to confusion or unintended consequences regarding international trade relations that are already in place.

  3. Interpretation of 'Substantially All the Trade': The phrase "substantially all the trade" is not clearly defined within the bill. This lack of specificity can leave room for varied interpretations, possibly leading to disputes or challenges.

  4. Effective Date Uncertainty: The provision tying the amendments’ effectiveness to the date of enactment could cause uncertainty. Delays or disputes regarding the enactment date might impact industries reliant on these vehicle credits.

Impact on the Public and Specific Stakeholders

This bill could have widespread implications for American consumers, industries, and international trade relations:

  • Broad Impact: By clarifying what constitutes a free trade agreement, the bill could streamline the process for determining eligibility for clean vehicle credits. This clarity could enhance consumer understanding and potentially promote the purchase of clean vehicles, contingent on these vehicles originating from countries with suitable free trade agreements.

  • Industry Effects: Automotive manufacturers and the clean vehicle industry might experience shifting dynamics. Those reliant on international trade might face challenges if existing agreements are impacted adversely or remain undefined.

  • Positive Implications for Clarity and Oversight: Stakeholders advocating for increased transparency and legislative oversight in trade agreements may view this bill favorably, as it limits executive authority by requiring Congressional approval.

  • Potential for Negative Impact: However, stakeholders opposed to potentially limiting the flexibility of negotiating trade agreements may argue that it hinders the United States' ability to swiftly engage in or respond to new international trade opportunities.

In summary, while the bill aims to enforce more stringent oversight on what qualifies as a free trade agreement for vehicle credits, it raises significant concerns regarding clarity, interpretation, and the potential disruption of existing agreements. Its impact will largely depend on how these undefined areas are resolved and the resulting effect on both domestic and international stakeholders.

Issues

  • The definition of 'free trade agreement' in Section 2 is limited to international agreements approved by Congress, but it does not provide clear guidance or criteria on how such agreements should be evaluated or prioritized. This lack of clarity could lead to inconsistent application and could be significant for legal and political reasons, especially if new agreements are controversial.

  • Section 2 does not specify how existing free trade agreements will be impacted by this amendment. This might cause confusion and have legal implications for agreements already in place, potentially affecting current international trade relations.

  • The term 'substantially all the trade' in Section 2 is not thoroughly defined, which can cause different interpretations and might lead to legal challenges regarding the scope of what constitutes a free trade agreement. This ambiguity could be politically and legally significant.

  • The effective date provision in Section 2, which is tied to the date of enactment, could lead to uncertainty if the enactment date is delayed or disputed. This uncertainty may have financial implications for industries dependent on the clean vehicle credit.

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title Read Opens in new tab

Summary AI

The first section of this bill provides the short title, allowing it to be referred to as the “Stop Executive Overreach on Trade Agreements Act.”

2. Free trade agreement defined for purposes of clean vehicle credit Read Opens in new tab

Summary AI

The section explains that for clean vehicle credit purposes, a "free trade agreement" is defined as an agreement approved by Congress that removes trade barriers between the United States and other countries. This amendment applies to vehicles placed in service after the law is enacted.