184 
striking ‘‘September 30, 2009’’ and inserting ‘‘Decem-
ber 31, 2009’’. 
(b) MODIFICATIONS.— 
(1) ALTERNATIVE
FUEL
TO
INCLUDE
COM-
PRESSED
OR
LIQUIFIED
BIOMASS
GAS.—Paragraph 
(2) of section 6426(d) (relating to alternative fuel 
credit) is amended by striking ‘‘and’’ at the end of 
subparagraph (E), by redesignating subparagraph 
(F) as subparagraph (G), and by inserting after sub-
paragraph (E) the following new subparagraph: 
‘‘(F) compressed or liquefied gas derived 
from biomass (as defined in section 45K(c)(3)), 
and’’. 
(2) CREDIT
ALLOWED
FOR
AVIATION
USE
OF 
FUEL.—Paragraph (1) of section 6426(d) is amended 
by inserting ‘‘sold by the taxpayer for use as a fuel 
in aviation,’’ after ‘‘motorboat,’’. 
(c) CARBON CAPTURE REQUIREMENT FOR CERTAIN 
FUELS.— 
(1) IN
GENERAL.—Subsection (d) of section 
6426, as amended by subsection (a), is amended by 
redesignating paragraph (4) as paragraph (5) and by 
inserting after paragraph (3) the following new para-
graph: 
‘‘(4) CARBON CAPTURE REQUIREMENT.—
185 
‘‘(A) IN
GENERAL.—The requirements of 
this paragraph are met if the fuel is certified, 
under such procedures as required by the Sec-
retary, as having been derived from coal pro-
duced at a gasification facility which separates 
and sequesters not less than the applicable per-
centage of such facility’s total carbon dioxide 
emissions. 
‘‘(B) APPLICABLE PERCENTAGE.—For pur-
poses of subparagraph (A), the applicable per-
centage is— 
‘‘(i) 50 percent in the case of fuel pro-
duced after September 30, 2009, and on or 
before December 30, 2009, and 
‘‘(ii) 75 percent in the case of fuel pro-
duced after December 30, 2009.’’. 
(2) CONFORMING
AMENDMENT.—Subparagraph 
(E) of section 6426(d)(2) is amended by inserting 
‘‘which meets the requirements of paragraph (4) and 
which is’’ after ‘‘any liquid fuel’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to fuel sold or used after the date of the 
enactment of this Act.
186 
SEC. 205. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC 
DRIVE MOTOR VEHICLES. 
(a) PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE CRED-
IT.—Subpart B of part IV of subchapter A of chapter 1 
(relating to other credits) is amended by adding at the end 
the following new section: 
‘‘SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 
MOTOR VEHICLES. 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN GENERAL.—There shall be allowed as a 
credit against the tax imposed by this chapter for the 
taxable year an amount equal to the applicable 
amount with respect to each new qualified plug-in 
electric drive motor vehicle placed in service by the 
taxpayer during the taxable year. 
‘‘(2) APPLICABLE
AMOUNT.—For purposes of 
paragraph (1), the applicable amount is sum of— 
‘‘(A) $2,500, plus 
‘‘(B) $417 for each kilowatt hour of traction 
battery capacity in excess of 4 kilowatt hours. 
‘‘(b) LIMITATIONS.— 
‘‘(1) LIMITATION
BASED
ON
WEIGHT.—The 
amount of the credit allowed under subsection (a) by 
reason of subsection (a)(2) shall not exceed— 
‘‘(A) $7,500, in the case of any new quali-
fied plug-in electric drive motor vehicle with a
187 
gross vehicle weight rating of not more than 
10,000 pounds, 
‘‘(B) $10,000, in the case of any new quali-
fied plug-in electric drive motor vehicle with a 
gross vehicle weight rating of more than 10,000 
pounds but not more than 14,000 pounds, 
‘‘(C) $12,500, in the case of any new quali-
fied plug-in electric drive motor vehicle with a 
gross vehicle weight rating of more than 14,000 
pounds but not more than 26,000 pounds, and 
‘‘(D) $15,000, in the case of any new quali-
fied plug-in electric drive motor vehicle with a 
gross vehicle weight rating of more than 26,000 
pounds. 
‘‘(2) LIMITATION ON NUMBER OF PASSENGER VE-
HICLES AND LIGHT TRUCKS ELIGIBLE FOR CREDIT.— 
‘‘(A) IN GENERAL.—In the case of a new 
qualified plug-in electric drive motor vehicle sold 
during the phaseout period, only the applicable 
percentage of the credit otherwise allowable 
under subsection (a) shall be allowed. 
‘‘(B) PHASEOUT PERIOD.—For purposes of 
this subsection, the phaseout period is the period 
beginning with the second calendar quarter fol-
lowing the calendar quarter which includes the
188 
first date on which the total number of such new 
qualified plug-in electric drive motor vehicles 
sold for use in the United States after December 
31, 2008, is at least 250,000. 
‘‘(C) APPLICABLE PERCENTAGE.—For pur-
poses of subparagraph (A), the applicable per-
centage is— 
‘‘(i) 50 percent for the first 2 calendar 
quarters of the phaseout period, 
‘‘(ii) 25 percent for the 3d and 4th cal-
endar quarters of the phaseout period, and 
‘‘(iii) 0 percent for each calendar quar-
ter thereafter. 
‘‘(D) CONTROLLED GROUPS.—Rules similar 
to the rules of section 30B(f)(4) shall apply for 
purposes of this subsection. 
‘‘(c) NEW
QUALIFIED
PLUG-IN
ELECTRIC
DRIVE 
MOTOR VEHICLE.—For purposes of this section, the term 
‘new qualified plug-in electric drive motor vehicle’ means 
a motor vehicle— 
‘‘(1) which draws propulsion using a traction 
battery with at least 4 kilowatt hours of capacity, 
‘‘(2) which uses an offboard source of energy to 
recharge such battery,
189 
‘‘(3) which, in the case of a passenger vehicle or 
light truck which has a gross vehicle weight rating of 
not more than 8,500 pounds, has received a certificate 
of conformity under the Clean Air Act and meets or 
exceeds the equivalent qualifying California low emis-
sion vehicle standard under section 243(e)(2) of the 
Clean Air Act for that make and model year, and 
‘‘(A) 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 sec-
tion 202(i) of the Clean Air Act for that make 
and model year vehicle, and 
‘‘(B) 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, 
‘‘(4) the original use of which commences with 
the taxpayer, 
‘‘(5) which is acquired for use or lease by the 
taxpayer and not for resale, and 
‘‘(6) which is made by a manufacturer. 
‘‘(d) APPLICATION WITH OTHER CREDITS.—
190 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—So much of the credit 
which would be allowed under subsection (a) for any 
taxable year (determined without regard to this sub-
section) that is attributable to property of a character 
subject to an allowance for depreciation shall be treat-
ed as a credit listed in section 38(b) for such taxable 
year (and not allowed under subsection (a)). 
‘‘(2) PERSONAL CREDIT.— 
‘‘(A) IN
GENERAL.—For purposes of this 
title, the credit allowed under subsection (a) for 
any taxable year (determined after application 
of paragraph (1)) shall be treated as a credit al-
lowable under subpart A for such taxable year. 
‘‘(B) LIMITATION
BASED
ON
AMOUNT
OF 
TAX.—In the case of a taxable year to which sec-
tion 26(a)(2) does not apply, the credit allowed 
under subsection (a) for any taxable year (deter-
mined after application of paragraph (1)) shall 
not exceed the excess of— 
‘‘(i) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax 
imposed by section 55, over 
‘‘(ii) the sum of the credits allowable 
under subpart A (other than this section