I 
109TH CONGRESS 
1ST SESSION H. R. 3152 
To amend the Internal Revenue Code of 1986 to provide tax incentives 
for the production of qualified hybrid motor vehicles. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 30, 2005 
Mr. CARNAHAN 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 
tax incentives for the production of qualified 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. QUALIFIED HYBRID MOTOR VEHICLE CREDITS. 
(a) QUALIFIED HYBRID MOTOR VEHICLE PUR-
CHASERS CREDIT.— 
(1) IN GENERAL.—Subpart B of part IV of 
subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 (relating to other credits) is amended 
by adding at the end the following:
‘‘SEC. 30B. QUALIFIED HYBRID MOTOR VEHICLE PUR-
CHASERS 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 65 percent of the 
sum of the credit amounts determined under subsection 
(b) with respect each qualified hybrid motor vehicle placed 
in service by the taxpayer during the taxable year. 
‘‘(b) CREDIT AMOUNT.—For purposes of subsection 
(a)— 
‘‘(1) FUEL ECONOMY.—The credit amount de-
termined under this paragraph shall be determined 
in accordance with the following table: 
‘‘In the case of a vehicle 
which achieves a fuel 
economy (expressed as a 
percentage of the 2002 model 
The credit 
year city fuel economy) of—
amount is— 
At least 125 percent but less than 150 percent ................................
$400
At least 150 percent but less than 175 percent ................................
$800
At least 175 percent but less than 200 percent ................................ $1,200
At least 200 percent but less than 225 percent ................................ $1,600
At least 225 percent but less than 250 percent ................................ $2,000
At least 250 percent .......................................................................... $2,400. 
‘‘(2) CONSERVATION CREDIT.—The amount de-
termined under paragraph (1) with respect to any 
vehicle shall be increased in accordance with the fol-
lowing table: 
‘‘In the case of a vehicle 
which achieves a lifetime 
fuel savings (expressed in 
The credit amount 
gallons of gasoline) of— 
shall be increased by— 
At least 1,200 but less than 1,800 ....................................................
$250
At least 1,800 but less than 2,400 ....................................................
$500
‘‘In the case of a vehicle 
which achieves a lifetime 
fuel savings (expressed in 
The credit amount 
gallons of gasoline) of— 
shall be increased by— 
At least 2,400 but less than 3,000 ....................................................
$750
At least 3,000 .................................................................................... $1,000. 
‘‘(c) NEW QUALIFIED HYBRID MOTOR VEHICLE.— 
For purposes of this section— 
‘‘(1) IN
GENERAL.—The term ‘new qualified 
hybrid motor vehicle’ means a motor vehicle— 
‘‘(A) which draws propulsion energy from 
onboard sources of stored energy which are 
both— 
‘‘(i) an internal combustion or heat 
engine using consumable fuel, and 
‘‘(ii) a rechargeable energy storage 
system, 
‘‘(B) which has received a certificate of 
conformity under the Clean Air Act and meets 
or exceeds the equivalent qualifying California 
low emission vehicle standard under section 
243(e)(2) of the Clean Air Act for that make 
and model year, and— 
‘‘(i) 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 pre-
scribed by the Administrator of the Envi-
ronmental Protection Agency under section 
202(i) of the Clean Air Act for that make 
and model year vehicle, and 
‘‘(ii) in the case of any other vehicle, 
the Bin 8 Tier II emission standard which 
is so established, 
‘‘(C) which is a passenger automobile or 
light truck with a gross vehicle weight rating of 
not more than 8,500 pounds, 
‘‘(D) which has a maximum available 
power of at least 4 percent, 
‘‘(E) the original use of which commences 
with the taxpayer, 
‘‘(F) which is acquired for use or lease by 
the taxpayer and not for resale, and 
‘‘(G) which is made by a manufacturer. 
‘‘(2) CONSUMABLE
FUEL.—For purposes of 
paragraph (1)(A)(i), the term ‘consumable fuel’ 
means any solid, liquid, or gaseous matter which re-
leases energy when consumed by an auxiliary power 
unit. 
‘‘(3) MAXIMUM AVAILABLE POWER.—The term 
‘maximum available power’ means the maximum 
power available from the rechargeable energy stor-
age system, during a standard 10 second pulse
power or equivalent test, divided by such maximum 
power and the SAE net power of the heat engine. 
‘‘(d) 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 the regular tax liability (as de-
fined in section 26(b)) plus the tax imposed by sec-
tion 55, over 
‘‘(2) the sum of the credits allowable under sub-
part A and sections 27 and 30 for the taxable year. 
‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ has the meaning given such term by section 
30(c)(2). 
‘‘(2) OTHER TERMS.—The terms ‘automobile’, 
‘passenger automobile’, ‘light truck’, and ‘manufac-
turer’ have the meanings given such terms in regula-
tions prescribed by the Administrator of the Envi-
ronmental Protection Agency for purposes of the ad-
ministration of title II of the Clean Air Act (42 
U.S.C. 7521 et seq.). 
‘‘(3) 2002 MODEL
YEAR
CITY
FUEL
ECON-
OMY.—