I 
110TH CONGRESS 
2D SESSION 
H. R. 6773 
To amend the Internal Revenue Code of 1986 to provide a tax credit to 
consumers based on fuel economy. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2008 
Mr. CHILDERS 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 tax credit to consumers based on fuel economy. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. FUEL ECONOMY TAX CREDIT. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 25E the fol-
lowing new section: 
‘‘SEC. 25E. FUEL ECONOMY TAX CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
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imposed by this chapter for the taxable year an amount 
equal to the product of— 
‘‘(1) $100, multiplied by 
‘‘(2) each mile per gallon (or portion thereof) 
for which the mile per gallon highway rating of a 
qualified vehicle placed in service by the taxpayer 
during the taxable year exceeds the CAFE standard 
applicable to such vehicle. 
‘‘(b) LIMITATIONS.— 
‘‘(1) LIMITATION
BASED
ON
FUEL
EFFI-
CIENCY.—In the case of any vehicle for which the 
mile per gallon highway rating exceeds 50 miles per 
gallon, paragraph (2) shall be applied by treating 
the the mile per gallon highway rating of such vehi-
cle as 50 miles per gallon. 
‘‘(2) LIMITATION BASED ON ADJUSTED GROSS 
INCOME.—The amount of the credit allowed by sub-
section (a) (determined without regard to this sub-
section) shall be reduced (but not below zero) by 5 
percent for each $1,000 (or fraction thereof) by 
which the taxpayer’s adjusted gross income exceeds 
$150,000. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) HIGHWAY
RATING
OF
QUALIFIED
VEHI-
CLE.—The highway rating of a qualified vehicle shall 
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be the rating determined by the Secretary of Trans-
portation for such vehicle. 
‘‘(2) QUALIFIED VEHICLE.—The term ‘qualified 
vehicle’ means a motor vehicle which is a passenger 
automobile or a light truck— 
‘‘(A) the original use of which commences 
with the taxpayer, 
‘‘(B) which is acquired for use or lease by 
the taxpayer and not for resale, and 
‘‘(C) which is made by a manufacturer. 
‘‘(3) CAFE STANDARD.—The term ‘CAFE 
standard’ means the average fuel economy level es-
tablished under chapter 329 of title 49, United 
States Code. 
‘‘(4) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ has the meaning given such term by section 
30(c)(2). 
‘‘(5) OTHER
TERMS.—The terms ‘passenger 
automobile’, ‘light truck’, and ‘‘manufacturer’’ have 
the meanings given such terms in regulations pre-
scribed by the Administrator of the Environmental 
Protection Agency for purposes of the administra-
tion of title II of the Clean Air Act (42 U.S.C. 7521 
et seq.). 
‘‘(d) SPECIAL RULES.— 
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‘‘(1) REDUCTION IN BASIS.—For purposes of 
this subtitle, the basis of any property for which a 
credit is allowable under subsection (a) shall be re-
duced by the amount of such credit so allowed (de-
termined without regard to subsection (g)). 
‘‘(2) NO
DOUBLE
BENEFIT.—The amount of 
any deduction or other credit allowable under this 
chapter for the taxable year with respect to any ve-
hicle shall be reduced by the amount of credit al-
lowed under subsection (a) for such vehicle for the 
taxable year. 
‘‘(3) 
PROPERTY
USED
OUTSIDE
UNITED 
STATES, ETC., NOT QUALIFIED.—No credit shall be 
allowable under subsection (a) with respect to any 
property referred to in section 50(b)(1) or with re-
spect to the portion of the cost of any property 
taken into account under section 179. 
‘‘(4) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
any property which ceases to be property eligible for 
such credit (including recapture in the case of a 
lease period of less than the economic life of a vehi-
cle). 
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‘‘(5) ELECTION
TO
NOT
TAKE
CREDIT.—No 
credit shall be allowed under subsection (a) for any 
vehicle if the taxpayer elects to not have this section 
apply to such vehicle.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 25D the following new item: 
‘‘Sec. 25E. Fuel economy tax credit.’’. 
(c) TERMINATION OF ALTERNATIVE MOTOR VEHI-
CLE CREDIT.—Subsection (j) of section 30B of the Inter-
nal Revenue Code of 1986 is amended to read as follows: 
‘‘(j) TERMINATION.—This section shall not apply to 
any property purchased after the date of the enactment 
of this subsection.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to vehicles placed in service after 
the date of the enactment of this Act in taxable years end-
ing after such date. 
Æ 
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