I 

110TH CONGRESS 

1ST SESSION H. R. 1618 

To amend the Internal Revenue Code of 1986 to provide a credit for the 

purchase of plug-in hybrid vehicles. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 21, 2007 

Mr. CAMP of Michigan 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 provide 

a credit for the purchase of plug-in 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. CREDIT FOR PLUG-IN HYBRID VEHICLES. 

4 (a) IN GENERAL.—Subpart B of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to other credits) is amended by adding at 

7 the end the following new section: 

8 ‘‘SEC. 30D. PLUG-IN HYBRID VEHICLES. 

9 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al10 lowed as a credit against the tax imposed by this chapter 


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1 for the taxable year an amount equal to 10 percent of the 

2 cost of any qualified plug-in hybrid vehicle placed in serv3 ice by the taxpayer during the taxable year. 

4 ‘‘(b) LIMITATIONS.— 

5 ‘‘(1) LIMITATION PER VEHICLE.—The amount 

6 of the credit allowed under subsection (a) for any ve7 hicle shall not exceed the sum of— 

8 ‘‘(A) $4,000 in the case of a plug-in elec9 tric drive vehicle with 4kWh traction battery, 

10 and 

11 ‘‘(B) $250 for each additional kWh of 

12 traction battery capacity of such vehicle as ex13 ceeds 4kWh but does not exceed 50kWh. 

14 ‘‘(2) APPLICATION WITH OTHER CREDITS.— 

15 ‘‘(A) BUSINESS CREDIT TREATED AS PART

16 OF GENERAL BUSINESS CREDIT.—So much of 

17 the credit which would be allowed under sub18 section (a) for any taxable year (determined 

19 without regard to this paragraph) that is attrib20 utable to property of a character subject to an 

21 allowance for depreciation shall be treated as a 

22 credit listed in section 38(b) for such taxable 

23 year (and not allowed under subsection (a)). 


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1 ‘‘(B) PERSONAL CREDITS.—The credit al2 lowed by subsection (a) for any taxable year 

3 shall not exceed the excess (if any) of— 

4 ‘‘(i) the sum of the regular tax liabil5 ity (as defined in section 26(b)) plus the 

6 tax imposed by section 55, over 

7 ‘‘(ii) the sum of the credits allowable 

8 under subpart A and subpart B (other 

9 than this section). 

10 ‘‘(c) QUALIFIED PLUG-IN HYBRID VEHICLE.—For 

11 purposes of this section— 

12 ‘‘(1) IN GENERAL.—The term ‘qualified plug-in 

13 hybrid vehicle’ means a motor vehicle (as defined in 

14 section 30(c)(2))— 

15 ‘‘(A) the original use of which commences 

16 with the taxpayer, 

17 ‘‘(B) which is acquired for use or lease by 

18 the taxpayer and not for resale, 

19 ‘‘(C) which is made by a manufacturer, 

20 ‘‘(D) which has received a certificate of 

21 conformity under the Clean Air Act, and 

22 ‘‘(E) which has not less than 2 onboard 

23 sources of stored energy, different in character 

24 from each other, from which to draw propulsion 

25 energy, where— 


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1 ‘‘(i) at least 1 of such sources is ener2 gized by plugging into an external source 

3 of electric power, and 

4 ‘‘(ii) at least 1 of such sources is ener5 gized from an internal combustion engine, 

6 fuel cell, or other means, and such source 

7 is utilized to provide mechanical propulsion 

8 to the vehicle. 

9 ‘‘(2) EXCEPTION.—The term ‘qualified plug-in 

10 hybrid vehicle’ shall not include any vehicle which is 

11 not a passenger automobile or light truck if such ve12 hicle has a gross vehicle weight rating of less than 

13 8,500 pounds. 

14 ‘‘(3) OTHER TERMS.—The terms ‘‘automobile’’, 

15 ‘‘passenger automobile’’, ‘‘light truck’’, and ‘‘manu16 facturer’’ have the meanings given such terms in 

17 regulations prescribed by the Administrator of the 

18 Environmental Protection Agency for purposes of 

19 the administration of title II of the Clean Air Act 

20 (42 U.S.C. 7521 et seq.). 

21 ‘‘(4) KWH TRACTION BATTERY CAPACITY.—The 

22 term ‘kWh traction battery capacity’ means the size 

23 of an electro chemical storage device, expressed in 

24 kWh, as measured from a 100 percent state of 

25 charge to 0 percent state of charge. 


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1 ‘‘(d) SPECIAL RULES.— 

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

3 property for which a credit is allowable under sub4 section (a) shall be reduced by the amount of such 

5 credit (determined without regard to subsection 

6 (b)(2)). 

7 ‘‘(2) RECAPTURE.—The Secretary shall, by reg8 ulations, provide for recapturing the benefit of any 

9 credit allowable under subsection (a) with respect to 

10 any property which ceases to be property eligible for 

11 such credit. 

12 ‘‘(3) PROPERTY USED OUTSIDE UNITED

13 STATES, ETC., NOT QUALIFIED.—No credit shall be 

14 allowed under subsection (a) with respect to any 

15 property referred to in section 50(b) or with respect 

16 to the portion of the cost of any property taken into 

17 account under section 179. 

18 ‘‘(4) DENIAL OF DOUBLE BENEFIT.—No credit 

19 shall be allowed under this section with respect to a 

20 vehicle if a credit or deduction is allowed with re21 spect to such vehicle under any other provision of 

22 this title. 

23 ‘‘(5) ELECTION NOT TO TAKE CREDIT.—No 

24 credit shall be allowed under subsection (a) for any 


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1 vehicle if the taxpayer elects to not have this section 

2 apply to such vehicle. 

3 ‘‘(6) PROPERTY USED BY TAX-EXEMPT ENTITY; 

4 INTERACTION WITH AIR QUALITY AND MOTOR VEHI5 CLE SAFETY STANDARDS.—Rules similar to the rules 

6 of paragraphs (6) and (10) of section 30B(h) shall 

7 apply for purposes of this section. 

8 ‘‘(e) TERMINATION.—This section shall not apply to 

9 any property placed in service after December 31, 2014.’’. 

10 (b) PLUG-IN HYBRID VEHICLES NOT COUNTED TO11 WARD LIMITATION ON NUMBER OF NEW QUALIFIED HY12 BRID VEHICLES ELIGIBLE FOR 30B CREDIT.—Section 

13 (30)(B)(f)(5) of such Code (defining qualified vehicle) is 

14 amended by adding at the end the following new sentence: 

15 ‘‘Such term shall not include a qualified plug-in hybrid 

16 vehicle (as defined in section 30D(c)).’’. 

17 (c) CREDIT MADE PART OF GENERAL BUSINESS

18 CREDIT.—Section 38(b) of such Code is amended by strik19 ing ‘‘and’’ at the end of paragraph (30), by striking the 

20 period at the end of paragraph (31) and inserting ‘‘, plus’’, 

21 and by adding at the end the following new paragraph: 

22 ‘‘(32) the portion of the plug-in hybrid vehicle 

23 credit to which section 30D(b)(2)(A) applies.’’. 


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1 (d) CONFORMING AMENDMENT.—Section 6501(m) of 

2 such Code is amended by inserting ‘‘30D(d)(5),’’ after 

3 ‘‘30C(e)(5),’’. 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2007. 

Æ 


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