I 

111TH CONGRESS 

2D SESSION H. R. 5705 

To amend the Internal Revenue Code of 1986 to increase the credit amount 

for 2- and 3-wheeled electric highway vehicles, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 1, 2010 

Mr. RYAN of Ohio (for himself and Ms. SUTTON) 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 

the credit amount for 2- and 3-wheeled electric highway 

vehicles, and for other purposes. 

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 ‘‘Electric Vehicle Ad5 vancement Act of 2010’’. 

6 SEC. 2. INCREASE IN CREDIT AMOUNT FOR 2- AND 3- 

7 WHEELED ELECTRIC HIGHWAY VEHICLES. 

8 (a) IN GENERAL.—Subsections (a) and (b) of section 

9 30 of the Internal Revenue Code of 1986 are amended 

10 to read as follows: 


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1 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al2 lowed as a credit against the tax imposed by this chapter 

3 for the taxable year an amount equal to— 

4 ‘‘(1) in the case of any qualified plug-in electric 

5 vehicle placed in service by the taxpayer during the 

6 taxable year which is a 2- or 3-wheeled vehicle de7 scribed in subsection (d)(3), the sum of— 

8 ‘‘(A) $1,000, 

9 ‘‘(B) in the case of a vehicle which draws 

10 propulsion energy from a battery with not less 

11 than 2.5 kilowatt hours of capacity, $417, plus 

12 $417 for each kilowatt hour of capacity in ex13 cess of 2.5 kilowatt hours, plus 

14 ‘‘(C) in the case of a vehicle which achieves 

15 at least 75 miles per gallon equivalent, $2,000, 

16 and 

17 ‘‘(2) in the case of any other qualified plug-in 

18 electric vehicle placed in service by the taxpayer dur19 ing the taxable year, 10 percent of the cost of such 

20 vehicle. 

21 ‘‘(b) DOLLAR LIMITATIONS.— 

22 ‘‘(1) BATTERY CAPACITY FOR 2- AND 3- 

23 WHEELED VEHICLES.—The amount allowed under 

24 subsection (a)(1) with respect to any vehicle by reaVerDate Mar 15 2010 02:13 Jul 07, 2010 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5705.IH H5705

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1 son of subparagraph (B) thereof shall not exceed 

2 $5,500. 

3 ‘‘(2) TOTAL.—The amount allowed under sub4 section (a)(1) with respect to any vehicle shall not 

5 exceed $7,500. 

6 ‘‘(3) OTHER QUALIFIED PLUG-IN ELECTRIC VE7 HICLES.—The amount of the credit allowed under 

8 subsection (a)(2) with respect to any vehicle shall 

9 not exceed $2,500.’’. 

10 (b) 2- OR 3-WHEELED MOTOR VEHICLES DE11 SCRIBED.—Subsection (d) of section 30 of such Code is 

12 amended by redesignating paragraphs (3) and (4) as para13 graphs (4) and (5), respectively, and by inserting after 

14 paragraph (2) the following new paragraph: 

15 ‘‘(3) 2- OR 3-WHEELED MOTOR VEHICLE.—A 2- 

16 or 3-wheeled vehicle described in this paragraph is 

17 a specified vehicle described in paragraph (2)(B)— 

18 ‘‘(A) with motive power having a seat, 

19 seats, or saddle for the use of the rider or rid20 ers and designed to travel on not more than 3 

21 wheels in contact with the ground, 

22 ‘‘(B) which has an electric motor that pro23 duces in excess of 5-brake horsepower, 

24 ‘‘(C) which draws propulsion from 1 or 

25 more traction batteries, and 


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1 ‘‘(D) which has been certified to the De2 partment of Transportation pursuant to section 

3 567 of title 49, Code of Federal Regulations, in 

4 effect on the date of the manufacture of the ve5 hicle.’’. 

6 (c) MILES PER GALLON EQUIVALENT.—Subsection 

7 (d) of section 30 of such Code, as amended by subsection 

8 (b), is amended by adding at the end the following new 

9 paragraph: 

10 ‘‘(6) MILES PER GALLON EQUIVALENT.—For 

11 purposes of this section, the miles per gallon equiva12 lent with respect to any vehicle shall be the com13 bined fuel economy with respect to such vehicle, as 

14 determined under section 136(a)(2)(B) of the En15 ergy Independence and Security Act of 2007.’’. 

16 (d) LIMITATION ON NUMBER OF 2- AND 3-WHEELED

17 VEHICLES ELIGIBLE FOR CREDIT.—Section 30 of such 

18 Code is amended by redesignating subsection (f) as sub19 section (g) and by inserting after subsection (e) the fol20 lowing new subsection: 

21 ‘‘(e) LIMITATION ON NUMBER OF 2- AND 3- 

22 WHEELED VEHICLES ELIGIBLE FOR CREDIT.— 

23 ‘‘(1) IN GENERAL.—In the case of a 2- or 3- 

24 wheeled electric vehicles described in subsection 

25 (d)(3) which are sold during the phaseout period, 


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1 only the applicable percentage of the credit otherwise 

2 allowable under subsection (a) shall be allowed. 

3 ‘‘(2) PHASEOUT PERIOD.—For purposes of this 

4 subsection, the phaseout period is the period begin5 ning with the second calendar quarter following the 

6 calendar quarter which includes the first date on 

7 which the number of 2- or 3-wheeled electric vehicles 

8 described in subsection (d)(3) manufactured by the 

9 manufacturer of the vehicle referred to in paragraph 

10 (1) sold for use in the United States after the date 

11 of the enactment of this section is at least 100,000. 

12 ‘‘(3) APPLICABLE PERCENTAGE.—For purposes 

13 of paragraph (1), the applicable percentage is— 

14 ‘‘(A) 50 percent for the first 2 calendar 

15 quarters of the phaseout period, 

16 ‘‘(B) 25 percent for the 3d and 4th cal17 endar quarters of the phaseout period, and 

18 ‘‘(C) 0 percent for each calendar quarter 

19 thereafter. 

20 ‘‘(4) CONTROLLED GROUPS.—Rules similar to 

21 the rules of section 30B(f)(4) shall apply for pur22 poses of this subsection.’’. 


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

2 this section shall apply to property placed in service after 

3 the date of the enactment of this Act. 

Æ 


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