I 
110TH CONGRESS 
1ST SESSION H. R. 2557 
To amend the Internal Revenue Code of 1986 to increase and extend the 
alternative motor vehicle credit for certain flexible fuel hybrid vehicles. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 5, 2007 
Mr. WELLER of Illinois 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 increase 
and extend the alternative motor vehicle credit for cer-
tain flexible fuel hybrid vehicles. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. INCREASE AND EXTENSION OF CREDIT FOR 
CERTAIN FLEXIBLE FUEL HYBRID VEHICLES. 
(a) IN GENERAL.—Subsection (a) of section 30B of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘and’’ at the end of paragraph (3), by striking paragraph 
(4), and by inserting after paragraph (3) the following new 
paragraphs: 
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‘‘(4) the new flexible fuel hybrid motor vehicle 
credit determined under subsection (e), and 
‘‘(5) the new qualified alternative fuel motor ve-
hicle credit determined under subsection (f).’’. 
(b) NEW FLEXIBLE FUEL HYBRID MOTOR VEHICLE 
CREDIT.—Section 30B of such Code is amended by redes-
ignating subsections (e) through (j) as subsections (f) 
through (k), respectively, and by inserting after subsection 
(d) the following new subsection: 
‘‘(e) NEW FLEXIBLE FUEL HYBRID MOTOR VEHI-
CLE CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the new flexible fuel hybrid motor vehicle credit 
determined under this subsection for the taxable 
year is the credit amount determined under para-
graph (2) with respect to a new hybrid flexible fuel 
motor vehicle placed in service by the taxpayer dur-
ing the taxable year. 
‘‘(2) CREDIT AMOUNT.— 
‘‘(A) IN GENERAL.—The credit amount de-
termined under this paragraph shall be deter-
mined in accordance with the following table: 
‘‘In the case of a vehicle the city fuel 
economy of which (expressed as a 
percentage of the city fuel economy 
of the comparable vehicle referred to 
in paragraph (3)(B)) is— 
The credit 
amount is—
At least 125 percent but less than 150 per-
cent.
$1,500
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At least 150 percent but less than 175 per-
cent.
$2,000
At least 175 percent but less than 200 per-
cent.
$2,500
At least 200 percent but less than 225 per-
cent.
$3,000
At least 225 percent ......................................
$3,500. 
‘‘(B) FUEL
ECONOMY.—For purposes of 
subparagraph (A), the city fuel economy of the 
vehicle for which the credit is being determined 
shall be determined on a E–85 ethanol gallon 
equivalent basis (as determined by the Adminis-
trator of the Environmental Protection Agen-
cy), and the city fuel economy of the com-
parable vehicle referred to in paragraph (3)(B) 
shall be determined on a gasoline gallon equiva-
lent basis (as so determined). 
‘‘(3) NEW FLEXIBLE FUEL HYBRID MOTOR VE-
HICLE.—For purposes of this subsection, the term 
‘new flexible fuel hybrid motor vehicle’ means a new 
qualified hybrid motor vehicle— 
‘‘(A) which is capable of operating on an 
alternative fuel, on gasoline, and on any blend 
thereof, and 
‘‘(B) which is certified by the Adminis-
trator of the Environmental Protection Agency, 
in consultation with the manufacturer, to have 
achieved a city fuel economy using E–85 eth-
anol which is at least 125 percent of the city 
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fuel economy of a comparable vehicle that is a 
nonhybrid internal combustion vehicle fueled by 
gasoline. 
‘‘(4) COORDINATION WITH NEW QUALIFIED HY-
BRID MOTOR VEHICLE CREDIT.—Subsection (d) shall 
not apply to any motor vehicle for which credit is al-
lowed under this subsection. 
‘‘(5) LIMITATION ON NUMBER OF ELIGIBLE VE-
HICLES.— 
‘‘(A) IN GENERAL.—In the case of a new 
flexible fuel hybrid motor vehicle sold during 
the phaseout period, only the applicable per-
centage of the credit otherwise allowable by rea-
son of paragraph (1) shall be allowed. 
‘‘(B) PHASEOUT
PERIOD.—For purposes 
of this paragraph, the phaseout period is the 
period beginning with the second calendar quar-
ter following the calendar quarter which in-
cludes the first date on which the number of 
new flexible fuel hybrid motor vehicles manufac-
tured by the manufacturer of the vehicles re-
ferred to in subparagraph (A) sold for use in 
the United States after December 31, 2011, is 
at least 60,000. 
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‘‘(C) 
APPLICABLE
PERCENTAGE.—For 
purposes of subparagraph (A), the applicable 
percentage is— 
‘‘(i) 50 percent for the first 2 cal-
endar quarters of the phaseout period, 
‘‘(ii) 25 percent for the 3d and 4th 
calendar quarters of the phaseout period, 
and 
‘‘(iii) 0 percent for each calendar 
quarter thereafter. 
‘‘(D) CONTROLLED
GROUPS.—For pur-
poses of this subsection, rules similar to the 
rules of subsection (g)(4) shall apply.’’. 
(c) EXTENSION OF TERMINATION.—Subsection (k) 
of section 30B of such Code, as redesignated by this sec-
tion, is amended by striking ‘‘and’’ at the end of para-
graph (3), by redesignating paragraph (4) as paragraph 
(5), and by inserting after paragraph (3) the following new 
paragraph: 
‘‘(4) in the case of a new flexible fuel hybrid 
motor vehicle (as described in subsection (e)), De-
cember 31, 2016, and’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Subparagraph (A) of section 30B(i)(5) of 
such Code, as redesignated by this section, is 
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amended by striking ‘‘subsection (e)’’ and inserting 
‘‘subsection (f)’’. 
(2) Paragraph (6) of section 30B(i) of such 
Code, as redesignated by this section, is amended by 
striking ‘‘subsection (g)’’ and inserting ‘‘subsection 
(h)’’. 
(3) Subsection (k) of section 30(B) of such 
Code, as redesignated by this section, is amended— 
(A) in paragraph (2), by inserting ‘‘other 
than a new flexible fuel hybrid motor vehicle de-
scribed in subsection (e)’’ after ‘‘a new qualified 
hybrid motor vehicle (as described in subsection 
(d)(2)(A))’’, 
(B) in paragraph (3), by inserting ‘‘other 
than a new flexible fuel hybrid motor vehicle de-
scribed in subsection (e)’’ after ‘‘a new qualified 
hybrid motor vehicle (as described in subsection 
(d)(2)(B))’’, and 
(C) in paragraph (5), as redesignated by 
this section, by striking ‘‘subsection (e)’’ and 
inserting ‘‘subsection (f)’’. 
(4) Subsection (b) of section 38 of such Code 
is amended by striking ‘‘section 30B(g)(1)’’ and in-
serting ‘‘section 30B(h)(1)’’. 
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(5) Paragraph (36) of section 1016(a) of such 
Code is amended by striking ‘‘section 30B(h)(4)’’ 
and inserting ‘‘section 30B(i)(4)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2011. 
Æ 
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