H. R. 6—449
‘‘(iv) for 2004 and later model vehicles, has received 
a certificate that such vehicle meets or exceeds— 
‘‘(I) in the case of a vehicle having a gross 
vehicle weight rating of 6,000 pounds or less, the 
Bin 5 Tier II emission standard established in 
regulations prescribed by the Administrator of the 
Environmental Protection Agency under section 
202(i) of the Clean Air Act for that make and 
model year vehicle, and 
‘‘(II) in the case of a vehicle having a gross 
vehicle weight rating of more than 6,000 pounds 
but not more than 8,500 pounds, the Bin 8 Tier 
II emission standard which is so established, 
‘‘(B) the original use of which commences with the 
taxpayer, 
‘‘(C) which is acquired for use or lease by the taxpayer 
and not for resale, and 
‘‘(D) which is made by a manufacturer. 
‘‘(4) LIFETIME FUEL SAVINGS.—For purposes of this sub-
section, the term ‘lifetime fuel savings’ means, in the case 
of any new advanced lean burn technology motor vehicle, an 
amount equal to the excess (if any) of— 
‘‘(A) 120,000 divided by the 2002 model year city fuel 
economy for the vehicle inertia weight class, over 
‘‘(B) 120,000 divided by the city fuel economy for such 
vehicle. 
‘‘(d) NEW QUALIFIED HYBRID MOTOR VEHICLE CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection (a), the new 
qualified hybrid motor vehicle credit determined under this 
subsection for the taxable year is the credit amount determined 
under paragraph (2) with respect to a new qualified hybrid 
motor vehicle placed in service by the taxpayer during the 
taxable year. 
‘‘(2) CREDIT AMOUNT.— 
‘‘(A) CREDIT AMOUNT FOR PASSENGER AUTOMOBILES AND 
LIGHT TRUCKS.—In the case of a new qualified hybrid motor 
vehicle which is a passenger automobile or light truck 
and which has a gross vehicle weight rating of not more 
than 8,500 pounds, the amount determined under this 
paragraph is the sum of the amounts determined under 
clauses (i) and (ii). 
‘‘(i) FUEL
ECONOMY.—The amount determined 
under this clause is the amount which would be deter-
mined under subsection (c)(2)(A) if such vehicle were 
a vehicle referred to in such subsection. 
‘‘(ii) CONSERVATION
CREDIT.—The amount deter-
mined under this clause is the amount which would 
be determined under subsection (c)(2)(B) if such vehicle 
were a vehicle referred to in such subsection. 
‘‘(B) CREDIT AMOUNT FOR OTHER MOTOR VEHICLES.— 
‘‘(i) IN GENERAL.—In the case of any new qualified 
hybrid motor vehicle to which subparagraph (A) does 
not apply, the amount determined under this para-
graph is the amount equal to the applicable percentage 
of the qualified incremental hybrid cost of the vehicle 
as certified under clause (v).
H. R. 6—450
‘‘(ii) APPLICABLE
PERCENTAGE.—For purposes of 
clause (i), the applicable percentage is— 
‘‘(I) 20 percent if the vehicle achieves an 
increase in city fuel economy relative to a com-
parable vehicle of at least 30 percent but less 
than 40 percent, 
‘‘(II) 30 percent if the vehicle achieves such 
an increase of at least 40 percent but less than 
50 percent, and 
‘‘(III) 40 percent if the vehicle achieves such 
an increase of at least 50 percent. 
‘‘(iii) QUALIFIED INCREMENTAL HYBRID COST.—For 
purposes of this subparagraph, the qualified incre-
mental hybrid cost of any vehicle is equal to the 
amount of the excess of the manufacturer’s suggested 
retail price for such vehicle over such price for a com-
parable vehicle, to the extent such amount does not 
exceed— 
‘‘(I) $7,500, if such vehicle has a gross vehicle 
weight rating of not more than 14,000 pounds, 
‘‘(II) $15,000, if such vehicle has a gross vehicle 
weight rating of more than 14,000 pounds but 
not more than 26,000 pounds, and 
‘‘(III) $30,000, if such vehicle has a gross 
vehicle weight rating of more than 26,000 pounds. 
‘‘(iv) COMPARABLE VEHICLE.—For purposes of this 
subparagraph, the term ‘comparable vehicle’ means, 
with respect to any new qualified hybrid motor vehicle, 
any vehicle which is powered solely by a gasoline or 
diesel internal combustion engine and which is com-
parable in weight, size, and use to such vehicle. 
‘‘(v) CERTIFICATION.—A certification described in 
clause (i) shall be made by the manufacturer and shall 
be determined in accordance with guidance prescribed 
by the Secretary. Such guidance shall specify proce-
dures and methods for calculating fuel economy savings 
and incremental hybrid costs. 
‘‘(3) NEW QUALIFIED HYBRID MOTOR VEHICLE.—For purposes 
of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘new qualified hybrid 
motor vehicle’ means a motor vehicle— 
‘‘(i) which draws propulsion energy from onboard 
sources of stored energy which are both— 
‘‘(I) an internal combustion or heat engine 
using consumable fuel, and 
‘‘(II) a rechargeable energy storage system, 
‘‘(ii) which, in the case of a vehicle to which para-
graph (2)(A) applies, has received a certificate of con-
formity under the Clean Air Act and meets or exceeds 
the equivalent qualifying California low emission 
vehicle standard under section 243(e)(2) of the Clean 
Air Act for that make and model year, and 
‘‘(I) in the case of a vehicle having a gross 
vehicle weight rating of 6,000 pounds or less, the 
Bin 5 Tier II emission standard established in 
regulations prescribed by the Administrator of the 
Environmental Protection Agency under section