I 
109TH CONGRESS 
1ST SESSION 
H. R. 626 
To amend the Internal Revenue Code of 1986 to provide tax incentives 
for the production of alternative fuel vehicles. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 8, 2005 
Mr. CAMP 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 alternative fuel vehicles. 
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 ‘‘Volume Enhancing 
Hardware Incentives for Consumer Lowered Expenses 
Technology Act of 2005’’ or the ‘‘VEHICLE Technology 
Act of 2005’’.
SEC. 2. REPEAL OF PHASEOUTS FOR QUALIFIED ELECTRIC 
VEHICLE 
CREDIT 
AND 
DEDUCTION 
FOR 
CLEAN FUEL-VEHICLES. 
(a) CREDIT FOR QUALIFIED ELECTRIC VEHICLES.— 
Subsection (b) of section 30 of the Internal Revenue Code 
of 1986 (relating to limitations) is amended by striking 
paragraph (2) and redesignating paragraph (3) as para-
graph (2). 
(b) DEDUCTION FOR CLEAN-FUEL VEHICLES AND 
CERTAIN REFUELING PROPERTY.—Paragraph (1) of sec-
tion 179A(b) of such Code (relating to qualified clean-fuel 
vehicle property) 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).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 3. ALTERNATIVE MOTOR VEHICLE CREDIT. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to foreign tax credit, etc.) is amended by 
adding at the end the following: 
‘‘SEC. 30B. ALTERNATIVE MOTOR VEHICLE 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 the sum of— 
‘‘(1) the new qualified fuel cell motor vehicle 
credit determined under subsection (b), 
‘‘(2) the new advanced lean burn technology 
motor vehicle credit determined under subsection (c), 
‘‘(3) the new qualified hybrid motor vehicle 
credit determined under subsection (d), and 
‘‘(4) the new qualified alternative fuel motor ve-
hicle credit determined under subsection (e). 
‘‘(b) NEW QUALIFIED FUEL CELL MOTOR VEHICLE 
CREDIT.—
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the new qualified fuel cell motor vehicle credit 
determined under this subsection with respect to a 
new qualified fuel cell motor vehicle placed in service 
by the taxpayer during the taxable year shall be de-
termined in accordance with the following table: 
‘‘In the case of a 
The new qualified 
vehicle which has a gross 
fuel cell motor 
vehicle weight rating of— 
vehicle credit is— 
Not more than 8,500 lbs .............................................................
$4,000
More than 8,500 lbs but not more than 14,000 lbs ....................
$10,000
More than 14,000 lbs but not more than 26,000 lbs ..................
$20,000
More than 26,000 lbs ..................................................................
$40,000. 
‘‘(2) INCREASE FOR FUEL EFFICIENCY.— 
‘‘(A) IN
GENERAL.—The amount deter-
mined under paragraph (1) with respect to a 
new qualified fuel cell motor vehicle which is a 
passenger automobile or light truck shall be in-
creased by the additional credit amount. 
‘‘(B) ADDITIONAL CREDIT AMOUNT.—For 
purposes of subparagraph (A), the additional 
credit amount shall be determined in accord-
ance with the following table: 
‘‘In the case of a vehicle 
which achieves a fuel 
economy (expressed as a 
percentage of the 2002 model 
The additional 
year city fuel economy) of— 
credit amount is— 
At least 150 percent but less than 175 percent ................................ $1,000
At least 175 percent but less than 200 percent ................................ $1,500
At least 200 percent but less than 225 percent ................................ $2,000
At least 225 percent but less than 250 percent ................................ $2,500
At least 250 percent but less than 275 percent ................................ $3,000
At least 275 percent but less than 300 percent ................................ $3,500
At least 300 percent .......................................................................... $4,000.
‘‘(3) NEW QUALIFIED FUEL CELL MOTOR VEHI-
CLE.—For purposes of this subsection, the term 
‘new qualified fuel cell motor vehicle’ means a motor 
vehicle— 
‘‘(A) which is propelled by power derived 
from one or more cells which convert chemical 
energy directly into electricity by combining ox-
ygen with hydrogen fuel which is stored on 
board the vehicle in any form and may or may 
not require reformation prior to use, 
‘‘(B) which, in the case of a passenger 
automobile or light truck, has received— 
‘‘(i) a certificate of conformity under 
the Clean Air Act and meets or exceeds the 
equivalent qualifying California low emis-
sion 
vehicle 
standard 
under 
section 
243(e)(2) of the Clean Air Act for that 
make and model year, and 
‘‘(ii) a certificate that such vehicle 
meets or exceeds the Bin 5 Tier II emis-
sion standard established in regulations 
prescribed by the Administrator of the En-
vironmental Protection Agency under sec-
tion 202(i) of the Clean Air Act for that 
make and model year vehicle,
‘‘(C) the original use of which commences 
with the taxpayer, 
‘‘(D) which is acquired for use or lease by 
the taxpayer and not for resale, and 
‘‘(E) which is made by a manufacturer. 
‘‘(c) NEW ADVANCED LEAN BURN TECHNOLOGY 
MOTOR VEHICLE CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the new advanced lean burn technology motor 
vehicle credit determined under this subsection with 
respect to a new advanced lean burn technology 
motor vehicle placed in service by the taxpayer dur-
ing the taxable year is the credit amount determined 
under paragraph (2). 
‘‘(2) CREDIT AMOUNT.— 
‘‘(A) FUEL ECONOMY.—The credit amount 
determined under this paragraph shall be deter-
mined 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. 
‘‘(B) 
CONSERVATION
CREDIT.—The 
amount determined under subparagraph (A)
with respect to a new advanced lean burn tech-
nology motor vehicle shall be increased by the 
conservation credit amount determined in ac-
cordance with the following table: 
‘‘In the case of a vehicle 
which achieves a lifetime 
fuel savings (expressed in 
The conservation 
gallons of gasoline) of— 
credit amount is— 
At least 1,200 but less than 1,800 ....................................................
$250
At least 1,800 but less than 2,400 ....................................................
$500
At least 2,400 but less than 3,000 ....................................................
$750
At least 3,000 .................................................................................... $1,000. 
‘‘(3) NEW ADVANCED LEAN BURN TECHNOLOGY 
MOTOR VEHICLE.—For purposes of this subsection, 
the term ‘new advanced lean burn technology motor 
vehicle’ means a passenger automobile or a light 
truck— 
‘‘(A) with an internal combustion engine 
which— 
‘‘(i) is designed to operate primarily 
using more air than is necessary for com-
plete combustion of the fuel, 
‘‘(ii) incorporates direct injection, 
‘‘(iii) achieves at least 125 percent of 
the 2002 model year city fuel economy, 
‘‘(iv) for 2005 and later model vehi-
cles, has received a certificate that such ve-
hicle meets or exceeds—
‘‘(I) in the case of a vehicle hav-
ing a gross vehicle weight rating of 
6,000 pounds or less, the Bin 5 Tier 
II emission standard established in 
regulations prescribed by the Adminis-
trator of the Environmental Protec-
tion Agency under section 202(i) of 
the Clean Air Act for that make and 
model year vehicle, and 
‘‘(II) in the case of a vehicle hav-
ing a gross vehicle weight rating of 
more than 6,000 pounds but not more 
than 8,500 pounds, the Bin 8 Tier II 
emission standard which is so estab-
lished. 
‘‘(B) the original use of which commences 
with the taxpayer, 
‘‘(C) which is acquired for use or lease by 
the taxpayer and not for resale, and 
‘‘(D) which is made by a manufacturer. 
‘‘(4) LIFETIME FUEL SAVINGS.—For purposes 
of this subsection, the term ‘lifetime fuel savings’ 
means, in the case of any new advanced lean burn 
technology motor vehicle, an amount equal to the ex-
cess (if any) of—
‘‘(A) 120,000 divided by the 2002 model 
year city fuel economy for the vehicle inertia 
weight class, over 
‘‘(B) 120,000 divided by the city fuel econ-
omy for such vehicle. 
‘‘(d) NEW QUALIFIED HYBRID MOTOR VEHICLE 
CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the new qualified hybrid motor vehicle credit de-
termined under this subsection with respect to a new 
qualified hybrid motor vehicle placed in service by 
the taxpayer during the taxable year is the credit 
amount determined under paragraph (2). 
‘‘(2) CREDIT AMOUNT.— 
‘‘(A) CREDIT
AMOUNT
FOR
PASSENGER 
AUTOMOBILES
AND
LIGHT
TRUCKS.—In the 
case of a new qualified hybrid motor vehicle 
which is a passenger automobile or light truck 
and which has a gross vehicle weight rating of 
not more than 8,500 pounds, the amount deter-
mined under this paragraph is the sum of the 
amounts determined under clauses (i) and (ii). 
‘‘(i) FUEL
ECONOMY.—The amount 
determined under this clause is the amount 
which would be determined under sub-
section (c)(2)(A) if such vehicle were a ve-
hicle referred to in such subsection. 
‘‘(ii) CONSERVATION
CREDIT.—The 
amount determined under this clause is the 
amount which would be determined under 
subsection (c)(2)(B) if such vehicle were a 
vehicle referred to in such subsection. 
‘‘(B) CREDIT AMOUNT FOR OTHER MOTOR 
VEHICLES.— 
‘‘(i) IN GENERAL.—In the case of any 
new qualified hybrid motor vehicle to which 
subparagraph (A) does not apply, the 
amount determined under this paragraph 
is the amount equal to the applicable per-
centage of the qualified incremental hybrid 
cost of the vehicle as certified under clause 
(v). 
‘‘(ii) APPLICABLE PERCENTAGE.—For 
purposes of clause (i), the applicable per-
centage is— 
‘‘(I) 20 percent if the vehicle 
achieves an increase in city fuel econ-
omy relative to a comparable vehicle 
of at least 30 percent but less than 40 
percent,
‘‘(II) 30 percent if the vehicle 
achieves such an increase of at least 
40 percent but less than 50 percent, 
and 
‘‘(III) 40 percent if the vehicle 
achieves such an increase of at least 
50 percent. 
‘‘(iii) QUALIFIED
INCREMENTAL
HY-
BRID COST.—For purposes of this subpara-
graph, the qualified incremental hybrid 
cost of any vehicle is equal to the amount 
of the excess of the manufacturer’s sug-
gested retail price for such vehicle over 
such price for a comparable vehicle, to the 
extent such amount does not exceed— 
‘‘(I) $7,500, if such vehicle has a 
gross vehicle weight rating of not 
more than 14,000 pounds, 
‘‘(II) $15,000, if such vehicle has 
a gross vehicle weight rating of more 
than 14,000 pounds but not more 
than 26,000 pounds, and 
‘‘(III) $30,000, if such vehicle 
has a gross vehicle weight rating of 
more than 26,000 pounds.
‘‘(iv) COMPARABLE
VEHICLE.—For 
purposes of this subparagraph, the term 
‘comparable vehicle’ means, with respect to 
any new qualified hybrid motor vehicle, 
any vehicle which is powered solely by a 
gasoline or diesel internal combustion en-
gine and which is comparable in weight, 
size, and use to such vehicle. 
‘‘(v) CERTIFICATION.—A certification 
described in clause (i) shall be made by the 
manufacturer and shall be determined in 
accordance with guidance prescribed by the 
Secretary. Such guidance shall specify pro-
cedures and methods for calculating fuel 
economy savings and incremental hybrid 
costs. 
‘‘(3) NEW
QUALIFIED
HYBRID
MOTOR
VEHI-
CLE.—For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘new quali-
fied hybrid motor vehicle’ means a motor vehi-
cle— 
‘‘(i) 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 stor-
age system, 
‘‘(ii) which, in the case of a vehicle to 
which paragraph (2)(A) applies, has re-
ceived a certificate of conformity under the 
Clean Air Act and meets or exceeds the 
equivalent qualifying California low emis-
sion 
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 hav-
ing a gross vehicle weight rating of 
6,000 pounds or less, the Bin 5 Tier 
II emission standard established in 
regulations prescribed by the Adminis-
trator of the Environmental Protec-
tion Agency under section 202(i) of 
the Clean Air Act for that make and 
model year vehicle, and 
‘‘(II) in the case of a vehicle hav-
ing a gross vehicle weight rating of 
more than 6,000 pounds but not more
than 8,500 pounds, the Bin 8 Tier II 
emission standard which is so estab-
lished, 
‘‘(iii) which has a maximum available 
power of at least— 
‘‘(I) 4 percent in the case of a ve-
hicle to which paragraph (2)(A) ap-
plies, 
‘‘(II) 10 percent in the case of a 
vehicle which has a gross vehicle 
weight rating or more than 8,500 
pounds and not than 14,000 pounds, 
and 
‘‘(III) 15 percent in the case of a 
vehicle in excess of 14,000 pounds, 
‘‘(iv) which, in the case of a vehicle to 
which paragraph (2)(B) applies, has an in-
ternal combustion or heat engine which 
has received a certificate of conformity 
under the Clean Air Act as meeting the 
emission standards set in the regulations 
prescribed by the Administrator of the En-
vironmental Protection Agency for 2005 
through 2008 model year diesel heavy duty
engines or ottocycle heavy duty engines, as 
applicable, 
‘‘(v) the original use of which com-
mences with the taxpayer, 
‘‘(vi) which is acquired for use or 
lease by the taxpayer and not for resale, 
and 
‘‘(vii) which is made by a manufac-
turer. 
Such term shall not include any vehicle which 
is not a passenger automobile or light truck if 
such vehicle has a gross vehicle weight rating of 
less than 8,500 pounds. 
‘‘(B) CONSUMABLE FUEL.—For purposes 
of subparagraph (A)(i)(I), the term ‘consumable 
fuel’ means any solid, liquid, or gaseous matter 
which releases energy when consumed by an 
auxiliary power unit. 
‘‘(C) MAXIMUM AVAILABLE POWER.— 
‘‘(i) 
CERTAIN
PASSENGER
AUTO-
MOBILES AND LIGHT TRUCKS.—In the case 
of a vehicle to which paragraph (2)(A) ap-
plies, the term ‘maximum available power’ 
means the maximum power available from 
the rechargeable energy storage system,
during a standard 10 second pulse power 
or equivalent test, divided by such max-
imum power and the SAE net power of the 
heat engine. 
‘‘(ii) OTHER
MOTOR
VEHICLES.—In 
the case of a vehicle to which paragraph 
(2)(B) applies, the term ‘maximum avail-
able power’ means the maximum power 
available from the rechargeable energy 
storage system, during a standard 10 sec-
ond pulse power or equivalent test, divided 
by the vehicle’s total traction power. For 
purposes of the preceding sentence, the 
term ‘total traction power’ means the sum 
of the peak power from the rechargeable 
energy storage system and the heat engine 
peak power of the vehicle, except that if 
such storage system is the sole means by 
which the vehicle can be driven, the total 
traction power is the peak power of such 
storage system. 
‘‘(e) NEW QUALIFIED ALTERNATIVE FUEL MOTOR 
VEHICLE CREDIT.— 
‘‘(1) ALLOWANCE OF CREDIT.—Except as pro-
vided in paragraph (5), the new qualified alternative
fuel motor vehicle credit determined under this sub-
section is an amount equal to the applicable percent-
age of the incremental cost of any new qualified al-
ternative fuel motor vehicle placed in service by the 
taxpayer during the taxable year. 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the applicable percentage with re-
spect to any new qualified alternative fuel motor ve-
hicle is— 
‘‘(A) 40 percent, plus 
‘‘(B) 30 percent, if such vehicle— 
‘‘(i) has received a certificate of con-
formity under the Clean Air Act and meets 
or exceeds the most stringent standard 
available for certification under the Clean 
Air Act for that make and model year vehi-
cle (other than a zero emission standard), 
or 
‘‘(ii) has received an order certifying 
the vehicle as meeting the same require-
ments as vehicles which may be sold or 
leased in California and meets or exceeds 
the most stringent standard available for 
certification under the State laws of Cali-
fornia (enacted in accordance with a waiv-
er granted under section 209(b) of the 
Clean Air Act) for that make and model 
year vehicle (other than a zero emission 
standard). 
For purposes of the preceding sentence, in the case 
of any new qualified alternative fuel motor vehicle 
which has a gross vehicle weight rating of more than 
14,000 pounds, the most stringent standard avail-
able shall be such standard available for certification 
on the date of the enactment of the Volume Enhanc-
ing Hardware Incentives for Consumer Lowered Ex-
penses Technology Act of 2005. 
‘‘(3) INCREMENTAL
COST.—For purposes of 
this subsection, the incremental cost of any new 
qualified alternative fuel motor vehicle is equal to 
the amount of the excess of the manufacturer’s sug-
gested retail price for such vehicle over such price 
for a gasoline or diesel fuel motor vehicle of the 
same model, to the extent such amount does not ex-
ceed— 
‘‘(A) $5,000, if such vehicle has a gross ve-
hicle weight rating of not more than 8,500 
pounds,