I 

110TH CONGRESS 

1ST SESSION H. R. 2557 

To amend the Internal Revenue Code of 1986 to increase and extend the 

alternative motor vehicle credit for certain flexible fuel hybrid vehicles. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 5, 2007 

Mr. WELLER of Illinois 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 increase 

and extend the alternative motor vehicle credit for certain flexible fuel 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. INCREASE AND EXTENSION OF CREDIT FOR 

4 CERTAIN FLEXIBLE FUEL HYBRID VEHICLES. 

5 (a) IN GENERAL.—Subsection (a) of section 30B of 

6 the Internal Revenue Code of 1986 is amended by striking 

7 ‘‘and’’ at the end of paragraph (3), by striking paragraph 

8 (4), and by inserting after paragraph (3) the following new 

9 paragraphs: 


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1 ‘‘(4) the new flexible fuel hybrid motor vehicle 

2 credit determined under subsection (e), and 

3 ‘‘(5) the new qualified alternative fuel motor ve4 hicle credit determined under subsection (f).’’. 

5 (b) NEW FLEXIBLE FUEL HYBRID MOTOR VEHICLE

6 CREDIT.—Section 30B of such Code is amended by redes7 ignating subsections (e) through (j) as subsections (f) 

8 through (k), respectively, and by inserting after subsection 

9 (d) the following new subsection: 

10 ‘‘(e) NEW FLEXIBLE FUEL HYBRID MOTOR VEHI11 CLE CREDIT.— 

12 ‘‘(1) IN GENERAL.—For purposes of subsection 

13 (a), the new flexible fuel hybrid motor vehicle credit 

14 determined under this subsection for the taxable 

15 year is the credit amount determined under para16 graph (2) with respect to a new hybrid flexible fuel 

17 motor vehicle placed in service by the taxpayer dur18 ing the taxable year. 

19 ‘‘(2) CREDIT AMOUNT.— 

20 ‘‘(A) IN GENERAL.—The credit amount de21 termined under this paragraph shall be deter22 mined in accordance with the following table: 

‘‘In the case of a vehicle the city fuel 

economy of which (expressed as a 

percentage of the city fuel economy 

of the comparable vehicle referred to 

in paragraph (3)(B)) is— 

The credit 

amount is—

At least 125 percent but less than 150 percent.$1,500


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At least 150 percent but less than 175 percent.$2,000

At least 175 percent but less than 200 percent.$2,500

At least 200 percent but less than 225 percent.$3,000

At least 225 percent ...................................... $3,500. 

1 ‘‘(B) FUEL ECONOMY.—For purposes of 

2 subparagraph (A), the city fuel economy of the 

3 vehicle for which the credit is being determined 

4 shall be determined on a E–85 ethanol gallon 

5 equivalent basis (as determined by the Adminis6 trator of the Environmental Protection Agen7 cy), and the city fuel economy of the com8 parable vehicle referred to in paragraph (3)(B) 

9 shall be determined on a gasoline gallon equiva10 lent basis (as so determined). 

11 ‘‘(3) NEW FLEXIBLE FUEL HYBRID MOTOR VE12 HICLE.—For purposes of this subsection, the term 

13 ‘new flexible fuel hybrid motor vehicle’ means a new 

14 qualified hybrid motor vehicle— 

15 ‘‘(A) which is capable of operating on an 

16 alternative fuel, on gasoline, and on any blend 

17 thereof, and 

18 ‘‘(B) which is certified by the Adminis19 trator of the Environmental Protection Agency, 

20 in consultation with the manufacturer, to have 

21 achieved a city fuel economy using E–85 eth22 anol which is at least 125 percent of the city 


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1 fuel economy of a comparable vehicle that is a 

2 nonhybrid internal combustion vehicle fueled by 

3 gasoline. 

4 ‘‘(4) COORDINATION WITH NEW QUALIFIED HY5 BRID MOTOR VEHICLE CREDIT.—Subsection (d) shall 

6 not apply to any motor vehicle for which credit is al7 lowed under this subsection. 

8 ‘‘(5) LIMITATION ON NUMBER OF ELIGIBLE VE9 HICLES.— 

10 ‘‘(A) IN GENERAL.—In the case of a new 

11 flexible fuel hybrid motor vehicle sold during 

12 the phaseout period, only the applicable per13 centage of the credit otherwise allowable by rea14 son of paragraph (1) shall be allowed. 

15 ‘‘(B) PHASEOUT PERIOD.—For purposes 

16 of this paragraph, the phaseout period is the 

17 period beginning with the second calendar quar18 ter following the calendar quarter which in19 cludes the first date on which the number of 

20 new flexible fuel hybrid motor vehicles manufac21 tured by the manufacturer of the vehicles re22 ferred to in subparagraph (A) sold for use in 

23 the United States after December 31, 2011, is 

24 at least 60,000. 


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1 ‘‘(C) APPLICABLE PERCENTAGE.—For 

2 purposes of subparagraph (A), the applicable 

3 percentage is— 

4 ‘‘(i) 50 percent for the first 2 cal5 endar quarters of the phaseout period, 

6 ‘‘(ii) 25 percent for the 3d and 4th 

7 calendar quarters of the phaseout period, 

8 and 

9 ‘‘(iii) 0 percent for each calendar 

10 quarter thereafter. 

11 ‘‘(D) CONTROLLED GROUPS.—For pur12 poses of this subsection, rules similar to the 

13 rules of subsection (g)(4) shall apply.’’. 

14 (c) EXTENSION OF TERMINATION.—Subsection (k) 

15 of section 30B of such Code, as redesignated by this sec16 tion, is amended by striking ‘‘and’’ at the end of para17 graph (3), by redesignating paragraph (4) as paragraph 

18 (5), and by inserting after paragraph (3) the following new 

19 paragraph: 

20 ‘‘(4) in the case of a new flexible fuel hybrid 

21 motor vehicle (as described in subsection (e)), De22 cember 31, 2016, and’’. 

23 (d) CONFORMING AMENDMENTS.— 

24 (1) Subparagraph (A) of section 30B(i)(5) of 

25 such Code, as redesignated by this section, is 


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1 amended by striking ‘‘subsection (e)’’ and inserting 

2 ‘‘subsection (f)’’. 

3 (2) Paragraph (6) of section 30B(i) of such 

4 Code, as redesignated by this section, is amended by 

5 striking ‘‘subsection (g)’’ and inserting ‘‘subsection 

6 (h)’’. 

7 (3) Subsection (k) of section 30(B) of such 

8 Code, as redesignated by this section, is amended— 

9 (A) in paragraph (2), by inserting ‘‘other 

10 than a new flexible fuel hybrid motor vehicle de11 scribed in subsection (e)’’ after ‘‘a new qualified 

12 hybrid motor vehicle (as described in subsection 

13 (d)(2)(A))’’, 

14 (B) in paragraph (3), by inserting ‘‘other 

15 than a new flexible fuel hybrid motor vehicle de16 scribed in subsection (e)’’ after ‘‘a new qualified 

17 hybrid motor vehicle (as described in subsection 

18 (d)(2)(B))’’, and 

19 (C) in paragraph (5), as redesignated by 

20 this section, by striking ‘‘subsection (e)’’ and 

21 inserting ‘‘subsection (f)’’. 

22 (4) Subsection (b) of section 38 of such Code 

23 is amended by striking ‘‘section 30B(g)(1)’’ and in24 serting ‘‘section 30B(h)(1)’’. 


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1 (5) Paragraph (36) of section 1016(a) of such 

2 Code is amended by striking ‘‘section 30B(h)(4)’’ 

3 and inserting ‘‘section 30B(i)(4)’’. 

4 (e) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to property placed in service after 

6 December 31, 2011. 

Æ 


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