II 

111TH CONGRESS 

1ST SESSION S. 2854 

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

credit for new qualified hybrid motor vehicles, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 9, 2009 

Mr. KOHL (for himself and Mr. HATCH) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

and modify the credit for new qualified hybrid motor 

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. EXTENSION AND MODIFICATION OF NEW 

4 QUALIFIED HYBRID MOTOR VEHICLE CRED5 IT. 

6 (a) EXTENSION.—Paragraph (3) of section 30B(k) of 

7 the Internal Revenue Code of 1986 is amended by striking 

8 ‘‘December 31, 2009’’ and inserting ‘‘December 31, 

9 2014’’. 


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1 (b) QUALIFIED INCREMENTAL HYBRID COST.— 

2 Clause (iii) of section 30B(d)(2)(B) of the Internal Rev3 enue Code of 1986 is amended by striking ‘‘does not ex4 ceed—’’ and all that follows and inserting the following: 

5 ‘‘does not exceed— 

6 ‘‘(I) $15,000, if such vehicle has 

7 a gross vehicle weight rating of not 

8 more than 14,000 pounds; 

9 ‘‘(II) $30,000, if such vehicle has 

10 a gross vehicle weight rating of more 

11 than 14,000 pounds but not more 

12 than 26,000 pounds; 

13 ‘‘(III) $60,000, if such vehicle 

14 has a gross vehicle weight rating of 

15 more than 26,000 pounds but not 

16 more than 33,000 pounds; and 

17 ‘‘(IV) $100,000, if such vehicle 

18 has a gross vehicle weight rating more 

19 than 33,000 pounds.’’. 

20 (c) APPLICABLE PERCENTAGE FOR HEAVY TRUCKS

21 ACHIEVING 20 PERCENT INCREASE IN CITY FUEL ECON22 OMY.—Clause (ii) of section 30B(d)(2)(B) of the Internal 

23 Revenue Code of 1986 is amended by redesignating sub24 clauses (I), (II), and (III) as subclauses (II), (III), and 


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1 (IV), respectively, and by inserting before subclause (II) 

2 (as so redesignated) the following new subclause: 

3 ‘‘(I) 10 percent in the case of a 

4 vehicle to which clause (iii)(IV) ap5 plies if such vehicle achieves an in6 crease in city fuel economy relative to 

7 a comparable vehicle of at least 20 

8 percent but less than 30 percent.’’. 

9 (d) DOLLAR LIMITATION.—Subparagraph (B) of sec10 tion 30B(d)(2) of the Internal Revenue Code of 1986 is 

11 amended by adding at the end the following new clause: 

12 ‘‘(vi) LIMITATION.—The amount al13 lowed as a credit under subsection (a)(3) 

14 with respect to a vehicle by reason of 

15 clause (i) of this subparagraph shall not 

16 exceed $24,000.’’. 

17 (e) HEAVY ELECTRIC VEHICLES.—Paragraph (3) of 

18 section 30B(d) of the Internal Revenue Code of 1986 is 

19 amended by redesignating subparagraphs (B), (C), and 

20 (D) as subparagraphs (C), (D), and (E), respectively, and 

21 by inserting after subparagraph (A) the following new sub22 paragraphs: 

23 ‘‘(B) HEAVY ELECTRIC VEHICLES.—In the 

24 case of a vehicle with a gross vehicle weight rat25 ing of not less than 8,500 pounds, the term 


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1 ‘new qualified hybrid motor vehicle’ includes a 

2 motor vehicle— 

3 ‘‘(i) which draws propulsion energy 

4 exclusively from a rechargeable energy 

5 storage system; and 

6 ‘‘(ii) which meets the requirements of 

7 clauses (iii), (v), (vi), and (vii) of subpara8 graph (A).’’. 

9 (f) CREDITS MAY BE TRANSFERRED.—Subsection 

10 (d) of section 30B of the Internal Revenue Code of 1986 

11 is amended by adding at the end the following new para12 graph: 

13 ‘‘(4) TRANSFERABILITY OF CREDIT.— 

14 ‘‘(A) IN GENERAL.—A taxpayer who places 

15 in service any vehicle may transfer the credit al16 lowed under this subsection with respect to 

17 such vehicle through an assignment to the seller 

18 of such vehicle. Such transfer may be revoked 

19 only with the consent of the Secretary. 

20 ‘‘(B) REGULATIONS.—The Secretary shall 

21 prescribe such regulations as necessary to en22 sure that any credit transferred under subpara23 graph (A) is claimed once and not reassigned 

24 by such other person.’’. 


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

2 this section shall apply to vehicles acquired after Decem3 ber 31, 2009. 

4 SEC. 2. EXTENSION OF ALTERNATIVE FUEL VEHICLE RE5 FUELING PROPERTY CREDIT. 

6 (a) IN GENERAL.—Paragraph (2) of section 30C(g) 

7 of the Internal Revenue Code of 1986 is amended by strik8 ing ‘‘2010’’ and inserting ‘‘2013’’. 

9 (b) EXTENSION OF INCREASED CREDIT.—Paragraph 

10 (6) of section 30C(e) of the Internal Revenue Code of 

11 1986 is amended— 

12 (1) by striking ‘‘2011’’ and inserting ‘‘2014’’; 

13 and 

14 (2) by striking ‘‘2009 AND 2010’’ in the heading 

15 and inserting ‘‘2009 THROUGH 2013’’. 

16 (c) DEFINITION OF ALTERNATIVE FUEL VEHICLE

17 REFUELING PROPERTY IN THE CASE OF ELECTRICITY.— 

18 Subparagraph (B) of section 179A(d)(3) of the Internal 

19 Revenue Code of 1986 is amended to read as follows: 

20 ‘‘(B) for the recharging of motor vehicles 

21 propelled by electricity, including electrical 

22 panel upgrades, wiring, conduit, trenching, ped23 estals, and related equipment.’’. 


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1 (d) 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. 

4 SEC. 3. TAX CREDIT FOR ELECTRIFICATION TECH5 NOLOGIES TO REDUCE TRUCK IDLING. 

6 (a) IN GENERAL.—Subpart D of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 

8 1986 (relating to business-related credits) is amended by 

9 adding at the end the following new section: 

10 ‘‘SEC. 45R. IDLING REDUCTION CREDIT. 

11 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

12 the idling reduction tax credit determined under this sec13 tion for the taxable year is an amount equal to 50 percent 

14 of the amount paid or incurred for the purchase and in15 stallation of each qualifying idling reduction device or 

16 qualifying idle reduction infrastructure placed in service 

17 by the taxpayer during the taxable year. 

18 ‘‘(b) LIMITATION.—The maximum amount allowed as 

19 a credit under subsection (a) shall not exceed $3,500 per 

20 device or per qualifying infrastructure. 

21 ‘‘(c) DEFINITIONS.—For purposes of subsection 

22 (a)— 

23 ‘‘(1) QUALIFYING IDLING REDUCTION DE24 VICE.—The term ‘qualifying idling reduction device’ 

25 means any device or system of devices which— 


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1 ‘‘(A) is installed on a heavy-duty diesel 

2 powered on-highway vehicle; 

3 ‘‘(B) is designed to provide to such vehicle 

4 those services (such as heat, air conditioning, or 

5 electricity) that would otherwise require the op6 eration of the main drive engine while the vehi7 cle is temporarily parked or remains stationary 

8 using either— 

9 ‘‘(i) an all electric unit, such as a bat10 tery powered unit or from grid-supplied 

11 electricity; or 

12 ‘‘(ii) a dual fuel unit powered by die13 sel or other fuels, and capable of providing 

14 such services from grid-supplied electricity 

15 or on-truck batteries alone; 

16 ‘‘(C) the original use of which commences 

17 with the taxpayer; 

18 ‘‘(D) is acquired for use by the taxpayer; 

19 and 

20 ‘‘(E) is certified by the Secretary of En21 ergy, in consultation with the Administrator of 

22 the Environmental Protection Agency and the 

23 Secretary of Transportation, to reduce long-du24 ration idling of such vehicle at a motor vehicle 


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1 rest stop or other location where such vehicles 

2 are temporarily parked or remain stationary. 

3 ‘‘(2) HEAVY-DUTY DIESEL-POWERED ON-HIGH4 WAY VEHICLE.—The term ‘heavy-duty diesel-pow5 ered on-highway vehicle’ means any vehicle, ma6 chine, tractor, trailer, or semi-trailer propelled or 

7 drawn by mechanical power and used upon the high8 ways in the transportation of passengers or prop9 erty, or any combination thereof determined by the 

10 Federal Highway Administration. 

11 ‘‘(3) LONG DURATION IDLING.—The term ‘long 

12 duration idling’ means the operation of a main drive 

13 engine, for a period greater than 15 consecutive 

14 minutes, where the main drive engine is not engaged 

15 in gear. Such term does not apply to routine stop16 pages associated with traffic movement or conges17 tion. 

18 ‘‘(4) QUALIFYING IDLE REDUCTION INFRA19 STRUCTURE.—The term ‘qualifying idle reduction 

20 infrastructure’ means off-truck equipment— 

21 ‘‘(A) which is to be used exclusively with 

22 respect to vehicles with a gross vehicle weight 

23 rating of 14,000 pounds or greater; and 

24 ‘‘(B) which either— 


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1 ‘‘(i) is used to supply electric power, 

2 including electric receptacles, boxes, wir3 ing, conduit, and other connections to one 

4 truck space; or 

5 ‘‘(ii) directly provides air conditioning, 

6 heating, electric power, and other connec7 tions and services to one truck space. 

8 ‘‘(d) NO DOUBLE BENEFIT.—For purposes of this 

9 section— 

10 ‘‘(1) REDUCTION IN BASIS.—If a credit is de11 termined under this section with respect to any 

12 property by reason of expenditures described in sub13 section (a), the basis of such property shall be re14 duced by the amount of the credit so determined. 

15 ‘‘(2) OTHER DEDUCTIONS AND CREDITS.—No 

16 deduction or credit shall be allowed under any other 

17 provision of this chapter with respect to the amount 

18 of the credit determined under this section. 

19 ‘‘(e) ELECTION NOT TO CLAIM CREDIT.—This sec20 tion shall not apply to a taxpayer for any taxable year 

21 if such taxpayer elects to have this section not apply for 

22 such taxable year. 

23 ‘‘(f) TERMINATION.—This section shall not apply to 

24 any property placed in service after December 31, 2013.’’. 


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1 (b) CREDIT TO BE PART OF GENERAL BUSINESS

2 CREDIT.—Subsection (b) of section 38 of the Internal 

3 Revenue Code of 1986 (relating to general business credit) 

4 is amended by striking ‘‘plus’’ at the end of paragraph 

5 (34), by striking the period at the end of paragraph (35) 

6 and inserting ‘‘, plus’’, and by adding at the end the fol7 lowing new paragraph: 

8 ‘‘(36) the idling reduction tax credit determined 

9 under section 45R(a).’’. 

10 (c) CONFORMING AMENDMENTS.— 

11 (1) The table of sections for subpart D of part 

12 IV of subchapter A of chapter 1 of the Internal Rev13 enue Code of 1986 is amended by inserting after the 

14 item relating to section 45P the following new item: 

‘‘Sec. 45R. Idling reduction credit.’’. 

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

16 by striking ‘‘and’’ at the end of paragraph (36), by 

17 striking the period at the end of paragraph (37) and 

18 inserting ‘‘, and’’, and by adding at the end the fol19 lowing: 

20 ‘‘(38) in the case of a facility with respect to 

21 which a credit was allowed under section 45R, to the 

22 extent provided in section 45R(d)(1).’’. 

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

24 by inserting ‘‘45R(e),’’ after ‘‘45H(g),’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2009. 

4 (e) DETERMINATION OF CERTIFICATION STANDARDS

5 BY SECRETARY OF ENERGY FOR CERTIFYING IDLING RE6 DUCTION DEVICES.—Not later than 6 months after the 

7 date of the enactment of this Act and in order to reduce 

8 air pollution and fuel consumption, the Secretary of En9 ergy, in consultation with the Administrator of the Envi10 ronmental Protection Agency and the Secretary of Trans11 portation, shall publish the standards under which the 

12 Secretary, in consultation with the Administrator of the 

13 Environmental Protection Agency and the Secretary of 

14 Transportation, will, for purposes of section 45R of the 

15 Internal Revenue Code of 1986 (as added by this section), 

16 certify the idling reduction devices and idling reduction in17 frastructure which will reduce long duration idling of vehi18 cles at motor vehicle rest stops or other locations where 

19 such vehicles are temporarily parked or remain stationary 

20 in order to reduce air pollution and fuel consumption. 

Æ 


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