H. R. 1—202 
SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS 
A QUALIFIED HIGHER EDUCATION EXPENSE FOR SEC-
TION 529 ACCOUNTS IN 2009 AND 2010. 
(a) IN GENERAL.—Section 529(e)(3)(A) is amended by striking 
‘‘and’’ at the end of clause (i), by striking the period at the end 
of clause (ii), and by adding at the end the following: 
‘‘(iii) expenses paid or incurred in 2009 or 2010 
for the purchase of any computer technology or equip-
ment (as defined in section 170(e)(6)(F)(i)) or Internet 
access and related services, if such technology, equip-
ment, or services are to be used by the beneficiary 
and the beneficiary’s family during any of the years 
the beneficiary is enrolled at an eligible educational 
institution. 
Clause (iii) shall not include expenses for computer soft-
ware designed for sports, games, or hobbies unless the 
software is predominantly educational in nature.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to expenses paid or incurred after December 31, 2008. 
SEC. 1006. EXTENSION OF AND INCREASE IN FIRST-TIME HOMEBUYER 
CREDIT; WAIVER OF REQUIREMENT TO REPAY. 
(a) EXTENSION.— 
(1) IN
GENERAL.—Section 36(h) is amended by striking 
‘‘July 1, 2009’’ and inserting ‘‘December 1, 2009’’. 
(2) CONFORMING AMENDMENT.—Section 36(g) is amended 
by striking ‘‘July 1, 2009’’ and inserting ‘‘December 1, 2009’’. 
(b) INCREASE.— 
(1) IN
GENERAL.—Section 36(b) is amended by striking 
‘‘$7,500’’ each place it appears and inserting ‘‘$8,000’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
36(b)(1)(B) 
is 
amended by striking ‘‘$3,750’’ and inserting ‘‘$4,000’’. 
(c) WAIVER OF RECAPTURE.— 
(1) IN GENERAL.—Paragraph (4) of section 36(f) is amended 
by adding at the end the following new subparagraph: 
‘‘(D) WAIVER OF RECAPTURE FOR PURCHASES IN 2009.— 
In the case of any credit allowed with respect to the pur-
chase of a principal residence after December 31, 2008, 
and before December 1, 2009— 
‘‘(i) paragraph (1) shall not apply, and 
‘‘(ii) paragraph (2) shall apply only if the disposi-
tion or cessation described in paragraph (2) with 
respect to such residence occurs during the 36-month 
period beginning on the date of the purchase of such 
residence by the taxpayer.’’. 
(2) CONFORMING
AMENDMENT.—Subsection (g) of section 
36 is amended by striking ‘‘subsection (c)’’ and inserting ‘‘sub-
sections (c) and (f)(4)(D)’’. 
(d) COORDINATION WITH FIRST-TIME HOMEBUYER CREDIT FOR 
DISTRICT OF COLUMBIA.— 
(1) IN
GENERAL.—Subsection (e) of section 1400C is 
amended by adding at the end the following new paragraph: 
‘‘(4) COORDINATION WITH NATIONAL FIRST-TIME HOMEBUYERS 
CREDIT.—No credit shall be allowed under this section to any 
taxpayer with respect to the purchase of a residence after 
December 31, 2008, and before December 1, 2009, if a credit
H. R. 1—203 
under section 36 is allowable to such taxpayer (or the taxpayer’s 
spouse) with respect to such purchase.’’. 
(2) CONFORMING AMENDMENT.—Section 36(d) is amended 
by striking paragraph (1). 
(e) REMOVAL OF PROHIBITION ON FINANCING BY MORTGAGE REV-
ENUE BONDS.—Section 36(d), as amended by subsection (c)(2), is 
amended by striking paragraph (2) and by redesignating paragraphs 
(3) and (4) as paragraphs (1) and (2), respectively. 
(f) EFFECTIVE DATE.—The amendments made by this section 
shall apply to residences purchased after December 31, 2008. 
SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COM-
PENSATION. 
(a) IN GENERAL.—Section 85 of the Internal Revenue Code 
of 1986 (relating to unemployment compensation) is amended by 
adding at the end the following new subsection: 
‘‘(c) SPECIAL RULE FOR 2009.—In the case of any taxable year 
beginning in 2009, gross income shall not include so much of the 
unemployment compensation received by an individual as does not 
exceed $2,400.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2008. 
SEC. 1008. ADDITIONAL DEDUCTION FOR STATE SALES TAX AND 
EXCISE TAX ON THE PURCHASE OF CERTAIN MOTOR 
VEHICLES. 
(a) IN GENERAL.—Subsection (a) of section 164 is amended 
by inserting after paragraph (5) the following new paragraph: 
‘‘(6) Qualified motor vehicle taxes.’’. 
(b) QUALIFIED MOTOR VEHICLE TAXES.—Subsection (b) of sec-
tion 164 is amended by adding at the end the following new para-
graph: 
‘‘(6) QUALIFIED MOTOR VEHICLE TAXES.— 
‘‘(A) IN GENERAL.—For purposes of this section, the 
term ‘qualified motor vehicle taxes’ means any State or 
local sales or excise tax imposed on the purchase of a 
qualified motor vehicle. 
‘‘(B) LIMITATION
BASED
ON
VEHICLE
PRICE.—The 
amount of any State or local sales or excise tax imposed 
on the purchase of a qualified motor vehicle taken into 
account under subparagraph (A) shall not exceed the por-
tion of such tax attributable to so much of the purchase 
price as does not exceed $49,500. 
‘‘(C) INCOME LIMITATION.—The amount otherwise taken 
into account under subparagraph (A) (after the application 
of subparagraph (B)) for any taxable year shall be reduced 
(but not below zero) by the amount which bears the same 
ratio to the amount which is so treated as— 
‘‘(i) the excess (if any) of— 
‘‘(I) the taxpayer’s modified adjusted gross 
income for such taxable year, over 
‘‘(II) $125,000 ($250,000 in the case of a joint 
return), bears to 
‘‘(ii) $10,000. 
For purposes of the preceding sentence, the term ‘modified 
adjusted gross income’ means the adjusted gross income 
of the taxpayer for the taxable year (determined without 
regard to sections 911, 931, and 933).
H. R. 1—204 
‘‘(D) QUALIFIED MOTOR VEHICLE.—For purposes of this 
paragraph— 
‘‘(i) IN
GENERAL.—The term ‘qualified motor 
vehicle’ means— 
‘‘(I) a passenger automobile or light truck 
which is treated as a motor vehicle for purposes 
of title II of the Clean Air Act, the gross vehicle 
weight rating of which is not more than 8,500 
pounds, and the original use of which commences 
with the taxpayer, 
‘‘(II) a motorcycle the gross vehicle weight 
rating of which is not more than 8,500 pounds 
and the original use of which commences with 
the taxpayer, and 
‘‘(III) a motor home the original use of which 
commences with the taxpayer. 
‘‘(ii) OTHER
TERMS.—The terms ‘motorcycle’ and 
‘motor home’ have the meanings given such terms 
under section 571.3 of title 49, Code of Federal Regula-
tions (as in effect on the date of the enactment of 
this paragraph). 
‘‘(E) QUALIFIED MOTOR VEHICLE TAXES NOT INCLUDED 
IN COST OF ACQUIRED PROPERTY.—The last sentence of sub-
section (a) shall not apply to any qualified motor vehicle 
taxes. 
‘‘(F) COORDINATION WITH GENERAL SALES TAX.—This 
paragraph shall not apply in the case of a taxpayer who 
makes an election under paragraph (5) for the taxable 
year. 
‘‘(G) TERMINATION.—This paragraph shall not apply 
to purchases after December 31, 2009.’’. 
(c) DEDUCTION ALLOWED TO NONITEMIZERS.— 
(1) IN GENERAL.—Paragraph (1) of section 63(c) is amended 
by striking ‘‘and’’ at the end of subparagraph (C), by striking 
the period at the end of subparagraph (D) and inserting ‘‘, 
and’’, and by adding at the end the following new subparagraph: 
‘‘(E) the motor vehicle sales tax deduction.’’. 
(2) DEFINITION.—Section 63(c) is amended by adding at 
the end the following new paragraph: 
‘‘(9) MOTOR VEHICLE SALES TAX DEDUCTION.—For purposes 
of paragraph (1), the term ‘motor vehicle sales tax deduction’ 
means the amount allowable as a deduction under section 
164(a)(6). Such term shall not include any amount taken into 
account under section 62(a).’’. 
(d) TREATMENT OF DEDUCTION UNDER ALTERNATIVE MINIMUM 
TAX.—The last sentence of section 56(b)(1)(E) is amended by 
striking ‘‘section 63(c)(1)(D)’’ and inserting ‘‘subparagraphs (D) and 
(E) of section 63(c)(1)’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to purchases on or after the date of the enactment 
of this Act in taxable years ending after such date.
H. R. 1—205 
PART II—ALTERNATIVE MINIMUM TAX RELIEF 
SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 
NONREFUNDABLE PERSONAL CREDITS. 
(a) IN GENERAL.—Paragraph (2) of section 26(a) (relating to 
special rule for taxable years 2000 through 2008) is amended— 
(1) by striking ‘‘or 2008’’ and inserting ‘‘2008, or 2009’’, 
and 
(2) by striking ‘‘2008’’ in the heading thereof and inserting 
‘‘2009’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008. 
SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX 
EXEMPTION AMOUNT. 
(a) IN GENERAL.—Paragraph (1) of section 55(d) (relating to 
exemption amount) is amended— 
(1) by striking ‘‘($69,950 in the case of taxable years begin-
ning in 2008)’’ in subparagraph (A) and inserting ‘‘($70,950 
in the case of taxable years beginning in 2009)’’, and 
(2) by striking ‘‘($46,200 in the case of taxable years begin-
ning in 2008)’’ in subparagraph (B) and inserting ‘‘($46,700 
in the case of taxable years beginning in 2009)’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008. 
Subtitle B—Energy Incentives 
PART I—RENEWABLE ENERGY INCENTIVES 
SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM 
CERTAIN RENEWABLE RESOURCES. 
(a) IN GENERAL.—Subsection (d) of section 45 is amended— 
(1) by striking ‘‘2010’’ in paragraph (1) and inserting ‘‘2013’’, 
(2) by striking ‘‘2011’’ each place it appears in paragraphs 
(2), (3), (4), (6), (7) and (9) and inserting ‘‘2014’’, and 
(3) by striking ‘‘2012’’ in paragraph (11)(B) and inserting 
‘‘2014’’. 
(b) TECHNICAL AMENDMENT.—Paragraph (5) of section 45(d) 
is amended by striking ‘‘and before’’ and all that follows and 
inserting ‘‘ and before October 3, 2008.’’. 
(c) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by subsection 
(a) shall apply to property placed in service after the date 
of the enactment of this Act. 
(2) TECHNICAL
AMENDMENT.—The amendment made by 
subsection (b) shall take effect as if included in section 102 
of the Energy Improvement and Extension Act of 2008. 
SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUC-
TION CREDIT. 
(a) IN GENERAL.—Subsection (a) of section 48 is amended by 
adding at the end the following new paragraph: 
‘‘(5) ELECTION TO TREAT QUALIFIED FACILITIES AS ENERGY 
PROPERTY.— 
‘‘(A) IN GENERAL.—In the case of any qualified property 
which is part of a qualified investment credit facility—
H. R. 1—206 
‘‘(i) such property shall be treated as energy prop-
erty for purposes of this section, and 
‘‘(ii) the energy percentage with respect to such 
property shall be 30 percent. 
‘‘(B) DENIAL OF PRODUCTION CREDIT.—No credit shall 
be allowed under section 45 for any taxable year with 
respect to any qualified investment credit facility. 
‘‘(C) QUALIFIED
INVESTMENT
CREDIT
FACILITY.—For 
purposes of this paragraph, the term ‘qualified investment 
credit facility’ means any of the following facilities if no 
credit has been allowed under section 45 with respect to 
such facility and the taxpayer makes an irrevocable election 
to have this paragraph apply to such facility: 
‘‘(i) 
WIND
FACILITIES.—Any 
qualified 
facility 
(within the meaning of section 45) described in para-
graph (1) of section 45(d) if such facility is placed 
in service in 2009, 2010, 2011, or 2012. 
‘‘(ii) OTHER
FACILITIES.—Any qualified facility 
(within the meaning of section 45) described in para-
graph (2), (3), (4), (6), (7), (9), or (11) of section 45(d) 
if such facility is placed in service in 2009, 2010, 2011, 
2012, or 2013. 
‘‘(D) QUALIFIED PROPERTY.—For purposes of this para-
graph, the term ‘qualified property’ means property— 
‘‘(i) which is— 
‘‘(I) tangible personal property, or 
‘‘(II) other tangible property (not including a 
building or its structural components), but only 
if such property is used as an integral part of 
the qualified investment credit facility, and 
‘‘(ii) with respect to which depreciation (or 
amortization in lieu of depreciation) is allowable.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to facilities placed in service after December 31, 2008. 
SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEW-
ABLE ENERGY PROPERTY. 
(a) REPEAL OF LIMITATION ON CREDIT FOR QUALIFIED SMALL 
WIND
ENERGY
PROPERTY.—Paragraph (4) of section 48(c) is 
amended by striking subparagraph (B) and by redesignating sub-
paragraphs (C) and (D) as subparagraphs (B) and (C). 
(b) REPEAL OF LIMITATION ON PROPERTY FINANCED BY SUB-
SIDIZED ENERGY FINANCING.— 
(1) IN GENERAL.—Section 48(a)(4) is amended by adding 
at the end the following new subparagraph: 
‘‘(D) TERMINATION.—This paragraph shall not apply 
to periods after December 31, 2008, under rules similar 
to the rules of section 48(m) (as in effect on the day before 
the date of the enactment of the Revenue Reconciliation 
Act of 1990).’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 25C(e)(1) is amended by striking ‘‘(8), and 
(9)’’ and inserting ‘‘and (8)’’. 
(B) Section 25D(e) is amended by striking paragraph 
(9).
H. R. 1—208 
PART II—INCREASED ALLOCATIONS OF NEW 
CLEAN RENEWABLE ENERGY BONDS AND 
QUALIFIED ENERGY CONSERVATION BONDS 
SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN 
RENEWABLE ENERGY BONDS. 
Subsection (c) of section 54C is amended by adding at the 
end the following new paragraph: 
‘‘(4) ADDITIONAL
LIMITATION.—The national new clean 
renewable energy bond limitation shall be increased by 
$1,600,000,000. Such increase shall be allocated by the Sec-
retary consistent with the rules of paragraphs (2) and (3).’’. 
SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED 
ENERGY CONSERVATION BONDS. 
(a) IN
GENERAL.—Section 54D(d) is amended by striking 
‘‘$800,000,000’’ and inserting ‘‘$3,200,000,000’’. 
(b) CLARIFICATION WITH RESPECT TO GREEN COMMUNITY PRO-
GRAMS.— 
(1) IN
GENERAL.—Clause (ii) of section 54D(f)(1)(A) is 
amended by inserting ‘‘(including the use of loans, grants, or 
other repayment mechanisms to implement such programs)’’ 
after ‘‘green community programs’’. 
(2) SPECIAL RULES FOR BONDS FOR IMPLEMENTING GREEN 
COMMUNITY
PROGRAMS.—Subsection (e) of section 54D is 
amended by adding at the end the following new paragraph: 
‘‘(4) SPECIAL
RULES
FOR
BONDS
TO
IMPLEMENT
GREEN 
COMMUNITY PROGRAMS.—In the case of any bond issued for 
the purpose of providing loans, grants, or other repayment 
mechanisms for capital expenditures to implement green 
community programs, such bond shall not be treated as a 
private activity bond for purposes of paragraph (3).’’. 
PART III—ENERGY CONSERVATION 
INCENTIVES 
SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSI-
NESS ENERGY PROPERTY. 
(a) IN GENERAL.—Section 25C is amended by striking sub-
sections (a) and (b) and inserting the following new subsections: 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 30 percent of the sum 
of— 
‘‘(1) the amount paid or incurred by the taxpayer during 
such taxable year for qualified energy efficiency improvements, 
and 
‘‘(2) the amount of the residential energy property expendi-
tures paid or incurred by the taxpayer during such taxable 
year. 
‘‘(b) LIMITATION.—The aggregate amount of the credits allowed 
under this section for taxable years beginning in 2009 and 2010 
with respect to any taxpayer shall not exceed $1,500.’’. 
(b) MODIFICATIONS
OF
STANDARDS
FOR
ENERGY-EFFICIENT 
BUILDING PROPERTY.—
H. R. 1—209 
(1) ELECTRIC HEAT PUMPS.—Subparagraph (B) of section 
25C(d)(3) is amended to read as follows: 
‘‘(B) an electric heat pump which achieves the highest 
efficiency tier established by the Consortium for Energy 
Efficiency, as in effect on January 1, 2009.’’. 
(2) CENTRAL AIR CONDITIONERS.—Subparagraph (C) of sec-
tion 25C(d)(3) is amended by striking ‘‘2006’’ and inserting 
‘‘2009’’. 
(3) 
WATER
HEATERS.—Subparagraph 
(D) 
of 
section 
25C(d)(3) is amended to read as follows: 
‘‘(D) a natural gas, propane, or oil water heater which 
has either an energy factor of at least 0.82 or a thermal 
efficiency of at least 90 percent.’’. 
(4) WOOD STOVES.—Subparagraph (E) of section 25C(d)(3) 
is amended by inserting ‘‘, as measured using a lower heating 
value’’ after ‘‘75 percent’’. 
(c) MODIFICATIONS OF STANDARDS FOR OIL FURNACES AND HOT 
WATER BOILERS.— 
(1) IN
GENERAL.—Paragraph (4) of section 25C(d) is 
amended to read as follows: 
‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND OIL FURNACES 
AND HOT WATER BOILERS.— 
‘‘(A) QUALIFIED
NATURAL
GAS
FURNACE.—The term 
‘qualified natural gas furnace’ means any natural gas fur-
nace which achieves an annual fuel utilization efficiency 
rate of not less than 95. 
‘‘(B) QUALIFIED
NATURAL
GAS
HOT
WATER
BOILER.— 
The term ‘qualified natural gas hot water boiler’ means 
any natural gas hot water boiler which achieves an annual 
fuel utilization efficiency rate of not less than 90. 
‘‘(C) QUALIFIED PROPANE FURNACE.—The term ‘quali-
fied propane furnace’ means any propane furnace which 
achieves an annual fuel utilization efficiency rate of not 
less than 95. 
‘‘(D) QUALIFIED
PROPANE
HOT
WATER
BOILER.—The 
term ‘qualified propane hot water boiler’ means any pro-
pane hot water boiler which achieves an annual fuel utiliza-
tion efficiency rate of not less than 90. 
‘‘(E) QUALIFIED OIL FURNACES.—The term ‘qualified oil 
furnace’ means any oil furnace which achieves an annual 
fuel utilization efficiency rate of not less than 90. 
‘‘(F) QUALIFIED
OIL
HOT
WATER
BOILER.—The term 
‘qualified oil hot water boiler’ means any oil hot water 
boiler which achieves an annual fuel utilization efficiency 
rate of not less than 90.’’. 
(2) CONFORMING
AMENDMENT.—Clause (ii) of section 
25C(d)(2)(A) is amended to read as follows: 
‘‘(ii) any qualified natural gas furnace, qualified 
propane furnace, qualified oil furnace, qualified natural 
gas hot water boiler, qualified propane hot water boiler, 
or qualified oil hot water boiler, or’’. 
(d) MODIFICATIONS OF STANDARDS FOR QUALIFIED ENERGY EFFI-
CIENCY IMPROVEMENTS.— 
(1) QUALIFICATIONS FOR EXTERIOR WINDOWS, DOORS, AND 
SKYLIGHTS.—Subsection (c) of section 25C is amended by adding 
at the end the following new paragraph:
H. R. 1—210 
‘‘(4) QUALIFICATIONS FOR EXTERIOR WINDOWS, DOORS, AND 
SKYLIGHTS.—Such term shall not include any component 
described in subparagraph (B) or (C) of paragraph (2) unless 
such component is equal to or below a U factor of 0.30 and 
SHGC of 0.30.’’. 
(2) ADDITIONAL QUALIFICATION FOR INSULATION.—Subpara-
graph (A) of section 25C(c)(2) is amended by inserting ‘‘and 
meets the prescriptive criteria for such material or system 
established by the 2009 International Energy Conservation 
Code, as such Code (including supplements) is in effect on 
the date of the enactment of the American Recovery and 
Reinvestment Tax Act of 2009’’ after ‘‘such dwelling unit’’. 
(e) EXTENSION.—Section 25C(g)(2) is amended by striking 
‘‘December 31, 2009’’ and inserting ‘‘December 31, 2010’’. 
(f) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to taxable years 
beginning after December 31, 2008. 
(2) EFFICIENCY
STANDARDS.—The amendments made by 
paragraphs (1), (2), and (3) of subsection (b) and subsections 
(c) and (d) shall apply to property placed in service after the 
date of the enactment of this Act. 
SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFI-
CIENT PROPERTY. 
(a) REMOVAL
OF CREDIT LIMITATION
FOR PROPERTY PLACED 
IN SERVICE.— 
(1) IN
GENERAL.—Paragraph (1) of section 25D(b) is 
amended to read as follows: 
‘‘(1) MAXIMUM
CREDIT
FOR
FUEL
CELLS.—In the case of 
any qualified fuel cell property expenditure, the credit allowed 
under subsection (a) (determined without regard to subsection 
(c)) for any taxable year shall not exceed $500 with respect 
to each half kilowatt of capacity of the qualified fuel cell prop-
erty (as defined in section 48(c)(1)) to which such expenditure 
relates.’’. 
(2) CONFORMING
AMENDMENT.—Paragraph (4) of section 
25D(e) is amended— 
(A) by striking all that precedes subparagraph (B) and 
inserting the following: 
‘‘(4) FUEL CELL EXPENDITURE LIMITATIONS IN CASE OF JOINT 
OCCUPANCY.—In the case of any dwelling unit with respect 
to which qualified fuel cell property expenditures are made 
and which is jointly occupied and used during any calendar 
year as a residence by two or more individuals, the following 
rules shall apply: 
‘‘(A) MAXIMUM EXPENDITURES FOR FUEL CELLS.—The 
maximum amount of such expenditures which may be 
taken into account under subsection (a) by all such individ-
uals with respect to such dwelling unit during such cal-
endar year shall be $1,667 in the case of each half kilowatt 
of capacity of qualified fuel cell property (as defined in 
section 48(c)(1)) with respect to which such expenditures 
relate.’’, and 
(B) by striking subparagraph (C). 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.
H. R. 1—211 
SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL 
VEHICLE REFUELING PROPERTY. 
(a) IN GENERAL.—Section 30C(e) is amended by adding at the 
end the following new paragraph: 
‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN SERVICE DURING 
2009 AND 2010.—In the case of property placed in service in 
taxable years beginning after December 31, 2008, and before 
January 1, 2011— 
‘‘(A) in the case of any such property which does not 
relate to hydrogen— 
‘‘(i) subsection (a) shall be applied by substituting 
‘50 percent’ for ‘30 percent’, 
‘‘(ii) subsection (b)(1) shall be applied by sub-
stituting ‘$50,000’ for ‘$30,000’, and 
‘‘(iii) subsection (b)(2) shall be applied by sub-
stituting ‘$2,000’ for ‘$1,000’, and 
‘‘(B) in the case of any such property which relates 
to hydrogen, subsection (b)(1) shall be applied by sub-
stituting ‘$200,000’ for ‘$30,000’.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2008. 
PART IV—MODIFICATION OF CREDIT FOR 
CARBON DIOXIDE SEQUESTRATION 
SEC. 1131. APPLICATION OF MONITORING REQUIREMENTS TO CARBON 
DIOXIDE USED AS A TERTIARY INJECTANT. 
(a) IN GENERAL.—Section 45Q(a)(2) is amended by striking 
‘‘and’’ at the end of subparagraph (A), by striking the period at 
the end of subparagraph (B) and inserting ‘‘, and’’, and by adding 
at the end the following new subparagraph: 
‘‘(C) disposed of by the taxpayer in secure geological 
storage.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 45Q(d)(2) is amended— 
(A) by striking ‘‘subsection (a)(1)(B)’’ and inserting 
‘‘paragraph (1)(B) or (2)(C) of subsection (a)’’, 
(B) by striking ‘‘and unminable coal seems’’ and 
inserting ‘‘, oil and gas reservoirs, and unminable coal 
seams’’, and 
(C) by inserting ‘‘the Secretary of Energy, and the 
Secretary of the Interior,’’ after ‘‘Environmental Protection 
Agency’’. 
(2) Section 45Q(a)(1)(B) is amended by inserting ‘‘and not 
used by the taxpayer as described in paragraph (2)(B)’’ after 
‘‘storage’’. 
(3) Section 45Q(e) is amended by striking ‘‘captured and 
disposed of or used as a tertiary injectant’’ and inserting ‘‘taken 
into account in accordance with subsection (a)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to carbon dioxide captured after the date of the enact-
ment of this Act.
H. R. 1—212 
PART V—PLUG-IN ELECTRIC DRIVE MOTOR 
VEHICLES 
SEC. 1141. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 
MOTOR VEHICLES. 
(a) IN GENERAL.—Section 30D is amended to read as follows: 
‘‘SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
VEHICLES. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an 
amount equal to the sum of the credit amounts determined under 
subsection (b) with respect to each new qualified plug-in electric 
drive motor vehicle placed in service by the taxpayer during the 
taxable year. 
‘‘(b) PER VEHICLE DOLLAR LIMITATION.— 
‘‘(1) IN GENERAL.—The amount determined under this sub-
section with respect to any new qualified plug-in electric drive 
motor vehicle is the sum of the amounts determined under 
paragraphs (2) and (3) with respect to such vehicle. 
‘‘(2) BASE AMOUNT.—The amount determined under this 
paragraph is $2,500. 
‘‘(3) BATTERY CAPACITY.—In the case of a vehicle which 
draws propulsion energy from a battery with not less than 
5 kilowatt hours of capacity, the amount determined under 
this paragraph is $417, plus $417 for each kilowatt hour of 
capacity in excess of 5 kilowatt hours. The amount determined 
under this paragraph shall not exceed $5,000. 
‘‘(c) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF GENERAL BUSI-
NESS CREDIT.—So much of the credit which would be allowed 
under subsection (a) for any taxable year (determined without 
regard to this subsection) that is attributable to property of 
a character subject to an allowance for depreciation shall be 
treated 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 (deter-
mined after application of paragraph (1)) shall be treated 
as a credit allowable under subpart A for such taxable 
year. 
‘‘(B) LIMITATION BASED ON AMOUNT OF TAX.—In the 
case of a taxable year to which section 26(a)(2) does not 
apply, the credit allowed under subsection (a) for any tax-
able year (determined 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 and sections 23 and 25D) 
and section 27 for the taxable year. 
‘‘(d) 
NEW
QUALIFIED
PLUG-IN
ELECTRIC
DRIVE
MOTOR 
VEHICLE.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘new qualified plug-in electric 
drive motor vehicle’ means a motor vehicle—
H. R. 1—213 
‘‘(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, 
‘‘(C) which is made by a manufacturer, 
‘‘(D) which is treated as a motor vehicle for purposes 
of title II of the Clean Air Act, 
‘‘(E) which has a gross vehicle weight rating of less 
than 14,000 pounds, and 
‘‘(F) which is propelled to a significant extent by an 
electric motor which draws electricity from a battery 
which— 
‘‘(i) has a capacity of not less than 4 kilowatt 
hours, and 
‘‘(ii) is capable of being recharged from an external 
source of electricity. 
‘‘(2) MOTOR VEHICLE.—The term ‘motor vehicle’ means any 
vehicle which is manufactured primarily for use on public 
streets, roads, and highways (not including a vehicle operated 
exclusively on a rail or rails) and which has at least 4 wheels. 
‘‘(3) MANUFACTURER.—The term ‘manufacturer’ has the 
meaning given such term in regulations prescribed by the 
Administrator of the Environmental Protection Agency for pur-
poses of the administration of title II of the Clean Air Act 
(42 U.S.C. 7521 et seq.). 
‘‘(4) BATTERY CAPACITY.—The term ‘capacity’ means, with 
respect to any battery, the quantity of electricity which the 
battery is capable of storing, expressed in kilowatt hours, as 
measured from a 100 percent state of charge to a 0 percent 
state of charge. 
‘‘(e) LIMITATION ON NUMBER OF NEW QUALIFIED PLUG-IN ELEC-
TRIC DRIVE MOTOR VEHICLES ELIGIBLE FOR CREDIT.— 
‘‘(1) 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. 
‘‘(2) PHASEOUT PERIOD.—For purposes of this subsection, 
the phaseout period is the period beginning with the second 
calendar quarter following the calendar quarter which includes 
the first date on which the number of new qualified plug- 
in electric drive motor vehicles manufactured by the manufac-
turer of the vehicle referred to in paragraph (1) sold for use 
in the United States after December 31, 2009, is at least 
200,000. 
‘‘(3) APPLICABLE PERCENTAGE.—For purposes of paragraph 
(1), the applicable percentage is— 
‘‘(A) 50 percent for the first 2 calendar quarters of 
the phaseout period, 
‘‘(B) 25 percent for the 3d and 4th calendar quarters 
of the phaseout period, and 
‘‘(C) 0 percent for each calendar quarter thereafter. 
‘‘(4) CONTROLLED GROUPS.—Rules similar to the rules of 
section 30B(f)(4) shall apply for purposes of this subsection. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) BASIS REDUCTION.—For purposes of this subtitle, the 
basis of any property for which a credit is allowable under
H. R. 1—214 
subsection (a) shall be reduced by the amount of such credit 
so allowed. 
‘‘(2) NO DOUBLE BENEFIT.—The amount of any deduction 
or other credit allowable under this chapter for a new qualified 
plug-in electric drive motor vehicle shall be reduced by the 
amount of credit allowed under subsection (a) for such vehicle. 
‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTITY.—In the case 
of a vehicle the use of which is described in paragraph (3) 
or (4) of section 50(b) and which is not subject to a lease, 
the person who sold such vehicle to the person or entity using 
such vehicle shall be treated as the taxpayer that placed such 
vehicle in service, but only if such person clearly discloses 
to such person or entity in a document the amount of any 
credit allowable under subsection (a) with respect to such 
vehicle (determined without regard to subsection (c)). 
‘‘(4) PROPERTY USED OUTSIDE UNITED STATES NOT QUALI-
FIED.—No credit shall be allowable under subsection (a) with 
respect to any property referred to in section 50(b)(1). 
‘‘(5) RECAPTURE.—The Secretary shall, by regulations, pro-
vide 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. 
‘‘(6) ELECTION NOT TO 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. 
‘‘(7) INTERACTION WITH AIR QUALITY AND MOTOR VEHICLE 
SAFETY STANDARDS.—A motor vehicle shall not be considered 
eligible for a credit under this section unless such vehicle 
is in compliance with— 
‘‘(A) the applicable provisions of the Clean Air Act 
for the applicable make and model year of the vehicle 
(or applicable air quality provisions of State law in the 
case of a State which has adopted such provision under 
a waiver under section 209(b) of the Clean Air Act), and 
‘‘(B) the motor vehicle safety provisions of sections 
30101 through 30169 of title 49, United States Code.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 30B(d)(3)(D) is amended by striking ‘‘subsection 
(d) thereof’’ and inserting ‘‘subsection (c) thereof’’. 
(2) Section 38(b)(35) is amended by striking ‘‘30D(d)(1)’’ 
and inserting ‘‘30D(c)(1)’’. 
(3) Section 1016(a)(25) is amended by striking ‘‘section 
30D(e)(4)’’ and inserting ‘‘section 30D(f)(1)’’. 
(4) Section 6501(m) is amended by striking ‘‘section 
30D(e)(9)’’ and inserting ‘‘section 30D(e)(4)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to vehicles acquired after December 31, 2009. 
SEC. 1142. CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES. 
(a) IN GENERAL.—Section 30 is amended to read as follows: 
‘‘SEC. 30. CERTAIN PLUG-IN ELECTRIC VEHICLES. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an 
amount equal to 10 percent of the cost of any qualified plug- 
in electric vehicle placed in service by the taxpayer during the 
taxable year.
H. R. 1—215 
‘‘(b) PER VEHICLE DOLLAR LIMITATION.—The amount of the 
credit allowed under subsection (a) with respect to any vehicle 
shall not exceed $2,500. 
‘‘(c) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF GENERAL BUSI-
NESS CREDIT.—So much of the credit which would be allowed 
under subsection (a) for any taxable year (determined without 
regard to this subsection) that is attributable to property of 
a character subject to an allowance for depreciation shall be 
treated 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 (deter-
mined after application of paragraph (1)) shall be treated 
as a credit allowable under subpart A for such taxable 
year. 
‘‘(B) LIMITATION BASED ON AMOUNT OF TAX.—In the 
case of a taxable year to which section 26(a)(2) does not 
apply, the credit allowed under subsection (a) for any tax-
able year (determined 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 and sections 23, 25D, and 
30D) and section 27 for the taxable year. 
‘‘(d) QUALIFIED PLUG-IN ELECTRIC VEHICLE.—For purposes of 
this section— 
‘‘(1) IN
GENERAL.—The term ‘qualified plug-in electric 
vehicle’ means a specified vehicle— 
‘‘(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, 
‘‘(C) which is made by a manufacturer, 
‘‘(D) which is manufactured primarily for use on public 
streets, roads, and highways, 
‘‘(E) which has a gross vehicle weight rating of less 
than 14,000 pounds, and 
‘‘(F) which is propelled to a significant extent by an 
electric motor which draws electricity from a battery 
which— 
‘‘(i) has a capacity of not less than 4 kilowatt 
hours (2.5 kilowatt hours in the case of a vehicle with 
2 or 3 wheels), and 
‘‘(ii) is capable of being recharged from an external 
source of electricity. 
‘‘(2) SPECIFIED VEHICLE.—The term ‘specified vehicle’ means 
any vehicle which— 
‘‘(A) is a low speed vehicle within the meaning of 
section 571.3 of title 49, Code of Federal Regulations (as 
in effect on the date of the enactment of the American 
Recovery and Reinvestment Tax Act of 2009), or 
‘‘(B) has 2 or 3 wheels.
H. R. 1—216 
‘‘(3) MANUFACTURER.—The term ‘manufacturer’ has the 
meaning given such term in regulations prescribed by the 
Administrator of the Environmental Protection Agency for pur-
poses of the administration of title II of the Clean Air Act 
(42 U.S.C. 7521 et seq.). 
‘‘(4) BATTERY CAPACITY.—The term ‘capacity’ means, with 
respect to any battery, the quantity of electricity which the 
battery is capable of storing, expressed in kilowatt hours, as 
measured from a 100 percent state of charge to a 0 percent 
state of charge. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) BASIS REDUCTION.—For purposes of this subtitle, the 
basis of any property for which a credit is allowable under 
subsection (a) shall be reduced by the amount of such credit 
so allowed. 
‘‘(2) NO DOUBLE BENEFIT.—The amount of any deduction 
or other credit allowable under this chapter for a new qualified 
plug-in electric drive motor vehicle shall be reduced by the 
amount of credit allowable under subsection (a) for such vehicle. 
‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTITY.—In the case 
of a vehicle the use of which is described in paragraph (3) 
or (4) of section 50(b) and which is not subject to a lease, 
the person who sold such vehicle to the person or entity using 
such vehicle shall be treated as the taxpayer that placed such 
vehicle in service, but only if such person clearly discloses 
to such person or entity in a document the amount of any 
credit allowable under subsection (a) with respect to such 
vehicle (determined without regard to subsection (c)). 
‘‘(4) PROPERTY USED OUTSIDE UNITED STATES NOT QUALI-
FIED.—No credit shall be allowable under subsection (a) with 
respect to any property referred to in section 50(b)(1). 
‘‘(5) RECAPTURE.—The Secretary shall, by regulations, pro-
vide 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. 
‘‘(6) ELECTION NOT TO 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. 
‘‘(f) TERMINATION.—This section shall not apply to any vehicle 
acquired after December 31, 2011.’’. 
(b) CONFORMING AMENDMENTS.— 
(1)(A) Section 24(b)(3)(B) is amended by inserting ‘‘30,’’ 
after ‘‘25D,’’. 
(B) Section 25(e)(1)(C)(ii) is amended by inserting ‘‘30,’’ 
after ‘‘25D,’’. 
(C) Section 25B(g)(2) is amended by inserting ‘‘30,’’ after 
‘‘25D,’’. 
(D) Section 26(a)(1) is amended by inserting ‘‘30,’’ after 
‘‘25D,’’. 
(E) Section 904(i) is amended by striking ‘‘and 25B’’ and 
inserting ‘‘25B, 30, and 30D’’. 
(F) Section 1400C(d)(2) is amended by striking ‘‘and 25D’’ 
and inserting ‘‘25D, and 30’’. 
(2) Paragraph (1) of section 30B(h) is amended to read 
as follows: 
‘‘(1) MOTOR VEHICLE.—The term ‘motor vehicle’ means any 
vehicle which is manufactured primarily for use on public