‘‘(B) for engineering integration of such 
vehicles and components as described in sub-
section (h). 
‘‘(2) ATTRIBUTION RULES.—In the event a fa-
cility of the eligible taxpayer produces both energy 
efficient motor vehicles and conventional motor vehi-
cles, or eligible and non-eligible components, only the 
qualified investment attributable to production of en-
ergy efficient motor vehicles and the research and 
development costs attributable to eligible components 
shall be taken into account. 
‘‘(g) ENERGY EFFICIENT MOTOR VEHICLES AND EL-
IGIBLE COMPONENTS.—For purposes of this section— 
‘‘(1) ENERGY
EFFICIENT
MOTOR
VEHICLE.— 
The term ‘energy efficient motor vehicle’ means— 
‘‘(A) any new advanced lean burn tech-
nology motor vehicle (as defined in section 
30B(c)(3) determined without regard to sub-
paragraph (A)(iv)(II) thereof or the weight lim-
itation under subparagraph (A)(iv)(I) thereof), 
‘‘(B) any new qualified hybrid motor vehi-
cle (as defined in section 30B(d)(3)(A) deter-
mined 
without 
regard 
to 
subparagraph 
(A)(ii)(II) thereof, the weight limitation under 
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sroberts on PROD1PC70 with BILLS
subparagraph (A)(ii)(I) thereof, and subpara-
graph (A)(iv) thereof), or 
‘‘(C) any other new technology motor vehi-
cle identified by the Secretary as offering a sub-
stantial increase in fuel economy. 
‘‘(2) ELIGIBLE COMPONENTS.—The term ‘eligi-
ble component’ means any component inherent to 
any energy efficient motor vehicle, including— 
‘‘(A) with respect to any gasoline-electric 
new qualified hybrid motor vehicle— 
‘‘(i) electric motor or generator, 
‘‘(ii) power split device, 
‘‘(iii) power control unit, 
‘‘(iv) power controls, 
‘‘(v) integrated starter generator, or 
‘‘(vi) battery, 
‘‘(B) with respect to any new advanced 
lean burn technology motor vehicle— 
‘‘(i) diesel engine, 
‘‘(ii) turbocharger, 
‘‘(iii) fuel injection system, or 
‘‘(iv) after-treatment system, such as 
a particle filter or NOx absorber, and 
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‘‘(C) with respect to any energy efficient 
motor vehicle, any other component approved 
by the Secretary. 
‘‘(h) ENGINEERING INTEGRATION COSTS.—For pur-
poses of subsection (f)(1)(B), costs for engineering inte-
gration are costs incurred prior to the market introduction 
of energy efficient vehicles for engineering tasks related 
to— 
‘‘(1) incorporating eligible components into the 
design of energy efficient motor vehicles, and 
‘‘(2) designing new tooling and equipment for 
production facilities which produce eligible compo-
nents or energy efficient motor vehicles. 
‘‘(i) ELIGIBLE TAXPAYER.—For purposes of this sec-
tion, the term ‘eligible taxpayer’ means, with respect to 
any taxable year, any taxpayer if more than 25 percent 
of the taxpayer’s gross receipts for the taxable year is de-
rived from the manufacture of motor vehicles or any com-
ponent parts of such vehicles. 
‘‘(j) LIMITATION BASED ON AMOUNT OF TAX.—The 
credit allowed under subsection (a) for the taxable year 
shall not exceed the excess of— 
‘‘(1) the sum of— 
‘‘(A) the regular tax liability (as defined in 
section 26(b)) for such taxable year, plus 
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‘‘(B) the tax imposed by section 55 for 
such taxable year, over 
‘‘(2) the sum of the credits allowable under sub-
part A and sections 27, 30, 30B, and 30C for the 
taxable year. 
‘‘(k) REDUCTION IN BASIS.—For purposes of this 
subtitle, if a credit is allowed under this section for any 
expenditure with respect to any property, the increase in 
the basis of such property which would (but for this para-
graph) result from such expenditure shall be reduced by 
the amount of the credit so allowed. 
‘‘(l) NO DOUBLE BENEFIT.— 
‘‘(1) COORDINATION WITH OTHER DEDUCTIONS 
AND
CREDITS.—The amount of any deduction or 
other credit allowable under this chapter for any 
cost taken into account in determining the amount 
of the credit under subsection (a) shall be reduced 
by the amount of such credit attributable to such 
cost. 
‘‘(2) RESEARCH AND DEVELOPMENT COSTS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), any amount described in 
subsection (d) taken into account in deter-
mining the amount of the credit under sub-
section (a) for any taxable year shall not be 
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taken into account for purposes of determining 
the credit under section 41 for such taxable 
year. 
‘‘(B) COSTS TAKEN INTO ACCOUNT IN DE-
TERMINING
BASE
PERIOD
RESEARCH
EX-
PENSES.—Any amounts described in subsection 
(d) taken into account in determining the 
amount of the credit under subsection (a) for 
any taxable year which are qualified research 
expenses (within the meaning of section 41(b)) 
shall be taken into account in determining base 
period research expenses for purposes of apply-
ing section 41 to subsequent taxable years. 
‘‘(m) BUSINESS CARRYOVERS ALLOWED.—If the 
credit allowable under subsection (a) for a taxable year 
exceeds the limitation under subsection (j) for such tax-
able year, such excess (to the extent of the credit allowable 
with respect to property subject to the allowance for depre-
ciation) shall be allowed as a credit carryback and 
carryforward under rules similar to the rules of section 
39. 
‘‘(n) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) DEFINITIONS.—Any term which is used in 
this section and in chapter 329 of title 49, United 
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