I 
110TH CONGRESS 
2D SESSION 
H. R. 6807 
To amend the Internal Revenue Code of 1986 to provide a credit for the 
purchase of new neighborhood electric vehicles. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2008 
Mr. HALL of New York 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 purchase of new neighborhood electric 
vehicles. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CREDIT FOR NEW NEIGHBORHOOD ELECTRIC 
VEHICLES. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
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allowable under subpart A for such taxable 
year. 
‘‘(B) LIMITATION BASED ON AMOUNT OF 
TAX.—In the case of a taxable year to which 
section 26(a)(2) does not apply, the credit al-
lowed under subsection (a) for any taxable year 
(determined after application of paragraph (1)) 
shall not exceed the excess of— 
‘‘(i) the sum of the regular tax liabil-
ity (as defined in section 26(b)) plus the 
tax imposed by section 55, over 
‘‘(ii) the sum of the credits allowable 
under subpart A (other than this section) 
and section 27, 30, 30B, and 30C for the 
taxable year. 
‘‘(d) NEW NEIGHBORHOOD ELECTRIC VEHICLE.— 
For purposes of this section, the term ‘neighborhood elec-
tric vehicle’ means a vehicle— 
‘‘(1) which draws propulsion energy solely from 
onboard sources of a rechargeable energy storage 
system, 
‘‘(2) which is classified as a low-speed vehicle 
subject to the requirements of Federal Motor Vehicle 
Safety Standard No. 500 (as promulgated by the 
National Highway Traffic Safety Administration in 
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section 571.500 of title 49, Code of Federal Regula-
tions) and which has— 
‘‘(A) 4 wheels, 
‘‘(B) a top attainable speed in 1 mile of 
more than 20 mph and not more than 35 mph 
on a paved level surface, and 
‘‘(C) a gross vehicle weight rating of less 
than 2,500 pounds, 
‘‘(3) the original use of which commences with 
the taxpayer, 
‘‘(4) which is acquired for use or lease by the 
taxpayer and not for resale, and 
‘‘(5) which is made by a manufacturer in the 
United States. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) BASIS
REDUCTION.—The basis of any 
property for which a credit is allowable under sub-
section (a) shall be reduced by the amount of such 
credit (determined without regard to subsection (b)). 
‘‘(2) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
any property which ceases to be property eligible for 
such credit. 
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‘‘(3) 
PROPERTY
USED
OUTSIDE
UNITED 
STATES, ETC., NOT QUALIFIED.—No credit shall be 
allowed under subsection (a) with respect to any 
property referred to in section 50(b)(1) or with re-
spect to the portion of the cost of any property 
taken into account under section 179. 
‘‘(4) ELECTION
NOT
TO
TAKE
CREDIT.—No 
credit shall be allowed under subsection (a) for any 
vehicle if the taxpayer elects to not have this section 
apply to such vehicle. 
‘‘(f) TERMINATION.—This section shall not apply to 
property purchased after December 31, 2013.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
ing ‘‘plus’’ at the end of paragraph (32), by striking the 
period at the end of paragraph (33) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(34) the portion of the new neighborhood elec-
tric vehicle credit to which section 30D(c)(1) ap-
plies.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 1016(a) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (35), by 
striking the period at the end of paragraph (36) and 
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inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(37) to the extent provided in section 
30D(e)(1).’’. 
(2) Section 6501(m) of such Code is amended 
by inserting ‘‘30D(e)(4),’’ after ‘‘30C(e)(5),’’. 
(3) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 30D. New neighborhood electric vehicles.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
Æ 
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