I 
108TH CONGRESS 
2D SESSION 
H. R. 4777 
To amend the Internal Revenue Code of 1986 to repeal the phaseout of 
the credit for qualified electric vehicles, to repeal the phaseout of the 
deduction for clean-fuel vehicle property, and to exempt certain hybrid 
vehicles from the limitation on the depreciation of certain luxury auto-
mobiles. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 7, 2004 
Mr. WU 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 repeal 
the phaseout of the credit for qualified electric vehicles, 
to repeal the phaseout of the deduction for clean-fuel 
vehicle property, and to exempt certain hybrid vehicles 
from the limitation on the depreciation of certain luxury 
automobiles. 
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 ‘‘Fuel Efficiency Fair-
ness Act of 2004’’.
SEC. 2. REPEAL OF PHASEOUT OF CREDIT FOR QUALIFIED 
ELECTRIC VEHICLES. 
(a) IN GENERAL.—Subsection (b) of section 30 of the 
Internal Revenue Code of 1986 is amended by striking 
paragraph (2) and by redesignating paragraph (3) as 
paragraph (2). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2003. 
SEC. 3. REPEAL OF PHASEOUT OF DEDUCTION FOR CLEAN- 
FUEL VEHICLE PROPERTY. 
(a) IN GENERAL.—Paragraph (1) of section 179A(b) 
of the Internal Revenue Code of 1986 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).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2003. 
SEC. 4. EXCEPTION FOR HYBRID VEHICLES FROM LIMITA-
TION ON DEPRECIATION OF CERTAIN LUX-
URY VEHICLES. 
(a) IN GENERAL.—Subparagraph (B) of section 
280F(d)(5) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of clause (ii), by 
striking the period at the end of clause (iii) and inserting 
‘‘, and’’, and by adding at the end the following new 
clause: 
‘‘(iv) any new qualified hybrid motor 
vehicle.’’. 
(b) NEW QUALIFIED HYBRID MOTOR VEHICLE.— 
Subsection (d) of section 280F of such Code is amended 
by adding at the end the following new paragraph: 
‘‘(11) NEW QUALIFIED HYBRID MOTOR VEHI-
CLE.—
‘‘(A) The term ‘qualified hybrid motor ve-
hicle’ means a passenger automobile (deter-
mined 
without 
regard 
to 
paragraph 
(5)(B)(iv))— 
‘‘(i) which is acquired for use or lease 
by the taxpayer and not for resale, 
‘‘(ii) which is made by a manufac-
turer, 
‘‘(iii) which draws propulsion energy 
from— 
‘‘(I) an internal combustion or 
heat engine using combustible fuel, 
and 
‘‘(II) a rechargeable onboard en-
ergy storage system which operates at 
no less than 100 volts and which pro-
vides a percentage of maximum avail-
able power of at least 5 percent, 
‘‘(iv) which has received a certificate 
that such vehicle meets or exceeds the Bin 
5 Tier II emission level established in reg-
ulations prescribed by the Administrator of 
the 
Environmental 
Protection 
Agency 
under section 202(i) of the Clean Air Act 
for that make and model year vehicle, and