I 
110TH CONGRESS 
1ST SESSION H. R. 2966 
To amend the Internal Revenue Code of 1986 to provide a credit for the 
conversion of hybrid motor vehicles to plug-in hybrid motor vehicles. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 10, 2007 
Mr. MARKEY (for himself, Mr. MORAN of Virginia, Mr. BLUMENAUER, and 
Mr. INSLEE) 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 credit for the conversion of hybrid motor vehicles to 
plug-in hybrid motor 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. 
This Act may be cited as the ‘‘Plug-in Hybrid Oppor-
tunity Act of 2007’’. 
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SEC. 2. CREDIT FOR CONVERSION OF HYBRID MOTOR VE-
HICLES TO PLUG-IN HYBRID MOTOR VEHI-
CLES. 
(a) IN GENERAL.—Subsection (a) of section 30B of 
the Internal Revenue Code of 1986 (relating to the alter-
native motor vehicle credit) is amended by striking ‘‘and’’ 
at the end of paragraph (3), by striking the period at the 
end of paragraph (4) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(5) the plug-in battery module conversion 
credit determined under subsection (f).’’. 
(b) PLUG-IN BATTERY MODULE CONVERSION CRED-
IT.—Section 30B of such Code is amended by redesig-
nating subsections (f) through (j) as subsections (g) 
through (k), respectively, and by inserting after subsection 
(e) the following new subsection: 
‘‘(f) PLUG-IN
BATTERY
MODULE
CONVERSION 
CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the plug-in battery module conversion credit de-
termined under this subsection with respect to any 
qualified plug-in battery module placed in service by 
the taxpayer during the taxable year is 35 percent 
of the cost of such module (including reasonable 
labor costs for installation). 
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‘‘(2) LIMITATION.—The amount of the credit 
allowed under this subsection shall not exceed 
$4,000 with respect to any qualified plug-in battery 
module. 
‘‘(3) DEFINITIONS AND SPECIAL RULES.—For 
purposes of this subsection— 
‘‘(A) QUALIFIED PLUG-IN BATTERY MOD-
ULE.—The term ‘qualified plug-in battery mod-
ule’ means any plug-in battery module— 
‘‘(i) the original use of which com-
mences with the taxpayer, 
‘‘(ii) which is acquired for use or lease 
by the taxpayer and not for resale, and 
‘‘(iii) which is installed in a new quali-
fied hybrid motor vehicle (as defined in 
subsection (d), determined without regard 
to subparagraph (A)(v) thereof) of the tax-
payer, but only if such vehicle was not 
equipped with a plug-in battery module at 
any time prior to such installation. 
‘‘(B) PLUG-IN
BATTERY
MODULE.—The 
term ‘plug-in battery module’ means, with re-
spect to any new qualified hybrid motor vehicle, 
an electro-chemical storage device of a stand-
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ardized, mass-produced design of a battery 
manufacturer, which— 
‘‘(i) has a traction battery capacity of 
not less than 2.5 kilowatt hours, 
‘‘(ii) can be energized and recharged 
by plugging into an external 120 volt 
source of electric power, 
‘‘(iii) has been tested, as installed in 
a new qualified hybrid motor vehicle of the 
same make and model year, by the Na-
tional Highway Transportation Safety Ad-
ministration, and determined by such Ad-
ministration to be in compliance with 
motor vehicle and motor vehicle equipment 
safety standards applicable to that make 
and model year vehicle when installed in 
such motor vehicle by a mechanic with 
standardized training in protocols estab-
lished by the battery manufacturer as part 
of a nationwide distribution program, 
‘‘(iv) has been tested, as installed in a 
new qualified hybrid motor vehicle of the 
same make and model year, by a testing 
laboratory approved the Environmental 
Protection Agency, and such testing con-
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firmed no effect on compliance with the 
emission standards applicable to such vehi-
cle, and 
‘‘(v) is certified by a battery manufac-
turer as meeting the requirements of 
clauses (i) through (iv).’’. 
(c) NO RECAPTURE FOR VEHICLES CONVERTED TO 
QUALIFIED CONVERSION HYBRID VEHICLES.—Paragraph 
(8) of section 30B(i) of such Code, as redesignated by this 
section, is amended by adding at the end the following: 
‘‘For purposes of the preceding sentence, a new qualified 
hybrid motor vehicle shall not be treated as ceasing to be 
eligible for the credit allowable under subsection (a) solely 
by reason of the installation of a qualified plug-in battery 
module described in subsection (f).’’. 
(d) TERMINATION.—Subsection (k) of section 30A of 
such Code, as redesignated by this section, is amended by 
striking ‘‘and’’ at the end of paragraph (3), by striking 
the period at the end of paragraph (4) and inserting ‘‘, 
and’’, and by adding at the end the following new para-
graph: 
‘‘(5) in the case of a qualified plug-in battery 
module (as described in subsection (f)), December 
31, 2010.’’. 
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(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
Æ 
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