I 

110TH CONGRESS 

1ST SESSION H. R. 2481 

To amend the Internal Revenue Code of 1986 to repeal the limitation on 

the number of new qualified hybrid and advanced lean-burn technology 

vehicles eligible for the alternative motor vehicle credit and to provide 

for a credit for manufacturing hybrid vehicles. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 24, 2007 

Mr. HILL introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to repeal 

the limitation on the number of new qualified hybrid 

and advanced lean-burn technology vehicles eligible for 

the alternative motor vehicle credit and to provide for 

a credit for manufacturing hybrid vehicles. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fuel Efficiency En5 couragement Act of 2007’’. 

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1 SEC. 2. REPEAL OF VOLUME LIMITATION ON VEHICLES ELI2 GIBLE FOR ALTERNATIVE MOTOR VEHICLE 

3 CREDIT. 

4 (a) IN GENERAL.—Section 30B of the Internal Rev5 enue Code of 1986 (relating to alternative motor vehicle 

6 credit) is amended by striking subsection (f). 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 subsection (a) shall apply to cars manufactured after De9 cember 31, 2006. 

10 SEC. 3. CREDIT FOR MANUFACTURING NEW QUALIFIED HY11 BRID MOTOR VEHICLES. 

12 (a) IN GENERAL.—Subpart D of part IV of sub13 chapter 1 of the Internal Revenue Code of 1986 is amend14 ed by inserting after section 45N the following new sec15 tion: 

16 ‘‘SEC. 45O. CREDIT FOR MANUFACTURING NEW QUALIFIED 

17 HYBRID MOTOR VEHICLES. 

18 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

19 new qualified hybrid motor vehicle manufacturing credit 

20 determined under this section for any taxable year is 

21 $1,000 for each new qualified hybrid motor vehicle manu22 factured by the taxpayer during the taxable year. 

23 ‘‘(b) NEW QUALIFIED HYBRID MOTOR VEHICLE.— 

24 For purposes of this section, the term ‘new qualified hy25 brid motor vehicle’ means a motor vehicle described in sec26 tion 30B(d)(3) which— 

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1 ‘‘(1) is made in the United States by a manu2 facturer, 

3 ‘‘(2) is manufactured after the date of the en4 actment of this section, and 

5 ‘‘(3) meets or exceeds the minimum fuel econ6 omy standards and conservation standards described 

7 in section 30B(d)(2)(A) for the vehicle model and 

8 weight class of such motor vehicle. 

9 ‘‘(c) DEFINITIONS AND SPECIAL RULES.— 

10 ‘‘(1) MOTOR VEHICLE.—The term ‘motor vehi11 cle’ has the meaning given such term by section 

12 30(c)(2). 

13 ‘‘(2) BASIS REDUCTION.—The basis of any 

14 property for which a credit is determined under sub15 section (a) shall be reduced by the amount of the 

16 credit so determined. 

17 ‘‘(3) ELECTION NOT TO TAKE CREDIT.—No 

18 credit shall be determined under subsection (a) for 

19 any vehicle if the taxpayer elects not to have this 

20 section apply to such vehicle.’’. 

21 (b) DENIAL OF DOUBLE BENEFIT.—Section 280C of 

22 such Code is amended by adding at the end the following 

23 new subsection: 

24 ‘‘(f) CREDIT FOR MANUFACTURING NEW QUALIFIED

25 HYBRID MOTOR VEHICLES.—No deduction shall be almstockstill on PROD1PC66 with BILLS

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1 lowed for that portion of the expenses otherwise allowable 

2 as a deduction for the taxable year which is equal to the 

3 amount of the credit determined for the taxable year 

4 under section 45O(a).’’. 

5 (c) CONFORMING AMENDMENTS.— 

6 (1) Section 38(b) of such Code is amended by 

7 striking ‘‘plus’’ at the end of paragraph (30), by 

8 striking the period at the end of paragraph (31) and 

9 inserting ‘‘, plus’’, and by adding at the end the fol10 lowing: 

11 ‘‘(32) the new qualified hybrid motor vehicle 

12 manufacturing credit determined under section 

13 45O(a).’’. 

14 (2) Section 1016(a) of such Code is amended 

15 by striking ‘‘and’’ at the end of paragraph (37), by 

16 striking the period at the end of paragraph (38) and 

17 inserting ‘‘, and’’, and by adding at the end the fol18 lowing new paragraph: 

19 ‘‘(38) to the extent provided in section 

20 30D(c)(2).’’. 

21 (3) Section 6501(m) of such Code is amended 

22 by inserting ‘‘30D(c)(3),’’ after ‘‘30C(e)(5),’’. 

23 (4) The table of sections for subpart D of part 

24 IV of subchapter A of chapter 1 of such Code is 

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1 amended by inserting after the item relating to sec2 tion 45N the following new item: 

‘‘Sec. 45O. Credit for manufacturing new qualified hybrid motor vehicles.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years ending after the 

5 date of the enactment of this Act. 

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