I 
108TH CONGRESS 
2D SESSION 
H. R. 5078 
To amend the Internal Revenue Code of 1986 to provide incentives for 
alternative fuels and alternative fuel vehicles. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 14, 2004 
Mr. RUPPERSBERGER 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 
incentives for alternative fuels and alternative fuel vehicles. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Common Sense Automobile Efficiency Act of 2004’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
SEC. 2. REPEAL OF PHASEOUTS FOR QUALIFIED ELECTRIC 
VEHICLE 
CREDIT 
AND 
DEDUCTION 
FOR 
CLEAN FUEL-VEHICLES. 
(a) CREDIT FOR QUALIFIED ELECTRIC VEHICLES.— 
Subsection (b) of section 30 (relating to limitations) is 
amended by striking paragraph (2) and redesignating 
paragraph (3) as paragraph (2). 
(b) DEDUCTION FOR CLEAN-FUEL VEHICLES AND 
CERTAIN REFUELING PROPERTY.—Paragraph (1) of sec-
tion 179A(b) (relating to qualified clean-fuel vehicle prop-
erty) is amended to read as follows: 
‘‘(1) QUALIFIED CLEAN-FUEL VEHICLE PROP-
ERTY.— The cost which may be taken into account 
under subsection (a)(1)(A) with respect to any 
motor vehicle shall not exceed— 
‘‘(A) in the case of a motor vehicle not de-
scribed in subparagraph (B) or (C), $2,000, 
‘‘(B) in the case of any truck or van with 
a gross vehicle weight rating greater than 
10,000 pounds but not greater than 26,000 
pounds, $5,000, or 
‘‘(C) $50,000 in the case of—
‘‘(i) a truck or van with a gross vehi-
cle weight rating greater than 26,000 
pounds, or 
‘‘(ii) any bus which has a seating ca-
pacity of at least 20 adults (not including 
the driver).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 3. ALTERNATIVE MOTOR VEHICLE CREDIT. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 (relating to foreign tax credit, etc.) 
is amended by adding at the end the following: 
‘‘SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of— 
‘‘(1) the new qualified fuel cell motor vehicle 
credit determined under subsection (b), 
‘‘(2) the new advanced lean burn technology 
motor vehicle credit determined under subsection (c), 
‘‘(3) the new qualified hybrid motor vehicle 
credit determined under subsection (d), and 
‘‘(4) the new qualified alternative fuel motor ve-
hicle credit determined under subsection (e).
‘‘(b) NEW QUALIFIED FUEL CELL MOTOR VEHICLE 
CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the new qualified fuel cell motor vehicle credit 
determined under this subsection with respect to a 
new qualified fuel cell motor vehicle placed in service 
by the taxpayer during the taxable year shall be de-
termined in accordance with the following table: 
‘‘In the case of a vehicle which 
has a gross vehicle weight rat-
ing of— 
The new qualified 
fuel cell motor 
vehicle credit is— 
Not more than 8,500 lbs .........................................................
$4,000
More than 8,500 lbs but not more than 14,000 lbs ................
$10,000
More than 14,000 lbs but not more than 26,000 lbs ..............
$20,000
More than 26,000 lbs ...............................................................
$40,000. 
‘‘(2) INCREASE FOR FUEL EFFICIENCY.— 
‘‘(A) IN
GENERAL.—The amount deter-
mined under paragraph (1) with respect to a 
new qualified fuel cell motor vehicle which is a 
passenger automobile or light truck shall be in-
creased by the additional credit amount. 
‘‘(B) ADDITIONAL CREDIT AMOUNT.—For 
purposes of subparagraph (A), the additional 
credit amount shall be determined in accord-
ance with the following table:
‘‘In the case of a vehicle which 
achieves a fuel economy (ex-
pressed as a percentage of the 
2002 model year city fuel econ-
omy) of— 
The additional credit 
amount is— 
At least 150 percent but less than 175 percent ......................
$1,000
At least 175 percent but less than 200 percent ......................
$1,500
At least 200 percent but less than 225 percent ......................
$2,000
At least 225 percent but less than 250 percent ......................
$2,500
At least 250 percent but less than 275 percent ......................
$3,000
At least 275 percent but less than 300 percent ......................
$3,500
At least 300 percent ................................................................
$4,000. 
‘‘(3) NEW QUALIFIED FUEL CELL MOTOR VEHI-
CLE.—For purposes of this subsection, the term 
‘new qualified fuel cell motor vehicle’ means a motor 
vehicle— 
‘‘(A) which is propelled by power derived 
from one or more cells which convert chemical 
energy directly into electricity by combining ox-
ygen with hydrogen fuel which is stored on 
board the vehicle in any form and may or may 
not require reformation prior to use, 
‘‘(B) which, in the case of a passenger 
automobile or light truck, has received— 
‘‘(i) 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