I 
110TH CONGRESS 
2D SESSION 
H. R. 6385 
To provide a large-scale national effort to improve the state of our national 
security, economy and environment by providing market incentives to 
produce and deploy alternative energy solutions and reduce our depend-
ence on foreign oil. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 26, 2008 
Mr. KIRK (for himself, Mrs. BIGGERT, and Mr. SHAYS) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on Science and Technology, Energy 
and Commerce, Education and Labor, Rules, Natural Resources, Agri-
culture, Armed Services, and the Budget, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To provide a large-scale national effort to improve the state 
of our national security, economy and environment by 
providing market incentives to produce and deploy alter-
native energy solutions and reduce our dependence on 
foreign oil. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Apollo Energy Independence Act of 2008’’. 
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(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title, etc. 
Sec. 2. Findings. 
Sec. 3. Purposes. 
TITLE I—ENHANCING DEVELOPMENT OF ALTERNATIVE AND 
RENEWABLE ENERGY 
Sec. 101. Renewable energy credit made permanent. 
Sec. 102. Production credit for electricity produced from marine renewables. 
Sec. 103. Energy credit. 
Sec. 104. New clean renewable energy bonds. 
Sec. 105. Advanced Nuclear Power Production. 
Sec. 106. Loan guarantees for construction of advanced nuclear facilities. 
TITLE II—IMPROVING ENERGY EFFICIENCY 
Sec. 201. Make permanent the tax credit for residential energy-efficient prop-
erty. 
Sec. 202. Make permanent the energy efficiency credit for existing homes. 
Sec. 203. Make permanent the energy efficiency commercial buildings deduc-
tion. 
Sec. 204. Make permanent the credit for production of energy-efficient appli-
ances. 
TITLE III—ENHANCING PRODUCTION AND DEPLOYMENT OF 
ALTERNATIVE VEHICLES AND FUELS 
Sec. 301. Consumer incentives to purchase advanced technology vehicles. 
Sec. 302. Advanced technology motor vehicles manufacturing credit. 
Sec. 303. Production tax credit for any commercial vehicle that attains an EPA 
fuel economy standard of 100 mpg. 
Sec. 304. Credit for production of cellulosic biofuel. 
Sec. 305. Establish a permanent production tax credit for hydrogen fuels. 
Sec. 306. Rate of credit for alternative fuel vehicle refueling property increased 
from 30 to 60 percent. 
Sec. 307. Use of CAFE´ penalties to support the Clean Cities Initiative. 
Sec. 308. Exclusion from heavy truck tax for idling reduction units and ad-
vanced insulation. 
Sec. 309. Advanced hydrogen storage technologies. 
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Sec. 310. Plug-in electric drive vehicle technology program. 
TITLE IV—REDUCING CONSUMER ENERGY AND GASOLINE COSTS 
Sec. 401. Refundable employer credit for providing tax-free transit passes to 
employees. 
Sec. 402. Reduction in number of boutique fuels. 
Sec. 403. Green schools grant program. 
Sec. 404. Extension and greening of qualified zone academy bonds. 
Sec. 405. Study on the reduction of energy costs in public schools. 
Sec. 406. Ethanol. 
TITLE V—OFFSETS 
Sec. 501. FY09 cost. 
Sec. 502. Conservation of resources fees. 
Sec. 503. Reduction in payment acres for direct and counter-cyclical payments 
under Department of Agriculture commodity programs. 
Sec. 504. Reduction in maximum amount of direct, counter-cyclical, and ACRE 
payments paid to producers under Department of Agriculture 
commodity programs. 
Sec. 505. Consolidation of military exchange stores system. 
Sec. 506. Revised pricing structure for depot-level activities of the Department 
of Defense. 
Sec. 507. Restrict Universal Service Fund support to 2 connections per house-
hold. 
Sec. 508. Improve Treasury payment transaction integrity. 
Sec. 509. Modernize Treasury cash investment practices. 
Sec. 510. Food Safety and Inspection Service user fees. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) The United States is the world’s largest 
per-capita oil consumer and is projected to remain 
such through at least 2030. 
(2) Crude oil prices increased by more than 400 
percent in the past 10 years. 
(3) The retail price of gasoline increased by 
nearly 200 percent in the past 10 years. 
(4) The retail price of electricity increased by 
30 percent in the past 10 years. 
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(5) On June 10, 2008, the national average 
cost of gasoline surpassed a record $4.00 per gallon. 
(6) Foreign oil accounts for 23.5 percent of 
United States energy consumption. This represents 
the largest component of American’s energy profile. 
(7) The United States is the world’s largest oil 
importer, spending over $500 billion per year on for-
eign oil. 
(8) 62 percent of the proved world oil reserves 
reside in countries considered ‘‘not free’’ by leading 
human rights organizations. 
(9) Oil revenues to dictatorial nations help pro-
vide funding for state-sponsored terrorism against 
America and her allies; the acquisition of weapons of 
mass destruction; and the sustainability of corrupt 
political systems which continue to subjugate their 
citizenry. 
(10) America’s dependence on oil is a threat to 
our national security, economic prosperity and envi-
ronmental sustainability. 
(11) The $20 billion NASA Apollo program was 
the first and most comprehensive national effort to 
achieve technological advancement in the history of 
our Nation. Between 1963 and 1972, the United 
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States spent $19.5 billion to realize one of her most 
prestigious accomplishments—landing on the moon. 
SEC. 3. PURPOSES. 
The purposes of this Act are— 
(1) to establish long-term market incentives in 
order to spur development, deployment and demand 
of renewable and alternative energy, vehicles and 
fuel; and 
(2) to provide resources on the scale of the 
NASA Apollo program, to achieve preeminence in ef-
ficient and alternative energy consumption for the 
United States and to develop America’s capability to 
live and work without dependence on foreign oil. 
TITLE I—ENHANCING DEVELOP-
MENT OF ALTERNATIVE AND 
RENEWABLE ENERGY 
SEC. 101. RENEWABLE ENERGY CREDIT MADE PERMANENT. 
(a) IN GENERAL.—Subsection (d) of section 45 of the 
Internal Revenue Code of 1986 (relating to qualified facili-
ties) is amended— 
(1) by striking ‘‘and before January 1, 2009’’ 
each place it occurs, 
(2) by striking ‘‘, and before January 1, 2009’’ 
in paragraphs (1) and (2)(A)(i), 
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(3) by striking ‘‘before January 1, 2009’’ in 
paragraphs (2)(A)(ii) and (3)(A)(ii) and inserting 
‘‘January 1, 2019’’, and 
(4) by striking ‘‘January 1, 2006’’ in paragraph 
(4) and inserting ‘‘January 1, 2019’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to electricity produced and sold 
after December 31, 2008, in taxable years ending after 
such date. 
SEC. 102. PRODUCTION CREDIT FOR ELECTRICITY PRO-
DUCED FROM MARINE RENEWABLES. 
(a) IN GENERAL.—Paragraph (1) of section 45(c) is 
amended by striking ‘‘and’’ at the end of subparagraph 
(G), by striking the period at the end of subparagraph 
(H) and inserting ‘‘, and’’, and by adding at the end the 
following new subparagraph: 
‘‘(I) marine and hydrokinetic renewable en-
ergy.’’. 
(b) MARINE RENEWABLES.—Subsection (c) of sec-
tion 45 is amended by adding at the end the following 
new paragraph: 
‘‘(10) MARINE
AND
HYDROKINETIC
RENEW-
ABLE ENERGY.— 
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‘‘(A) IN GENERAL.—The term ‘marine and 
hydrokinetic renewable energy’ means energy 
derived from— 
‘‘(i) waves, tides, and currents in 
oceans, estuaries, and tidal areas, 
‘‘(ii) free flowing water in rivers, 
lakes, and streams, 
‘‘(iii) free flowing water in an irriga-
tion system, canal, or other man-made 
channel, including projects that utilize non-
mechanical structures to accelerate the 
flow of water for electric power production 
purposes, or 
‘‘(iv) differentials in ocean tempera-
ture (ocean thermal energy conversion). 
‘‘(B) EXCEPTIONS.—Such term shall not 
include any energy which is derived from any 
source which utilizes a dam, diversionary struc-
ture (except as provided in subparagraph 
(A)(iii)), or impoundment for electric power 
production purposes.’’. 
(c) DEFINITION
OF FACILITY.—Subsection (d) of 
section 45 is amended by adding at the end the following 
new paragraph: 
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‘‘(11) MARINE
AND
HYDROKINETIC
RENEW-
ABLE ENERGY FACILITIES.—In the case of a facility 
producing electricity from marine and hydrokinetic 
renewable energy, the term ‘qualified facility’ means 
any facility owned by the taxpayer— 
‘‘(A) which has a nameplate capacity rat-
ing of at least 150 kilowatts, and 
‘‘(B) which is originally placed in service 
on or after the date of the enactment of this 
paragraph.’’. 
(d) CREDIT RATE.—Subparagraph (A) of section 
45(b)(4) is amended by striking ‘‘or (9)’’ and inserting 
‘‘(9), or (11)’’. 
(e) 
COORDINATION
WITH
SMALL
IRRIGATION 
POWER.—Paragraph (5) of section 45(d) is amended by 
striking ‘‘January 1, 2009’’ and inserting ‘‘the date of the 
enactment of paragraph (11)’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to electricity produced and sold 
after the date of the enactment of this Act, in taxable 
years ending after such date. 
SEC. 103. ENERGY CREDIT. 
(a) EXTENSION OF CREDIT.— 
(1) SOLAR
ENERGY
PROPERTY.—Paragraphs 
(2)(A)(i)(II) and (3)(A)(ii) of section 48(a) are each 
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amended by striking ‘‘but only with respect to peri-
ods ending before January 1, 2009’’. 
(2) FUEL CELL PROPERTY.—Paragraph (1) of 
section 48(c) is amended by striking subparagraph 
(E). 
(3) MICROTURBINE PROPERTY.—Paragraph (2) 
of section 48(c) is amended by striking subpara-
graph (E). 
(b) ALLOWANCE OF ENERGY CREDIT AGAINST AL-
TERNATIVE MINIMUM TAX.—Subparagraph (B) of section 
38(c)(4) is amended by striking ‘‘and’’ at the end of clause 
(iii), by redesignating clause (iv) as clause (v), and by in-
serting after clause (iii) the following new clause: 
‘‘(iv) the credit determined under sec-
tion 46 to the extent that such credit is at-
tributable to the energy credit determined 
under section 48, and’’. 
(c) ENERGY CREDIT
FOR COMBINED HEAT
AND 
POWER SYSTEM PROPERTY.— 
(1) IN GENERAL.—Section 48(a)(3)(A) (defin-
ing energy property) is amended by striking ‘‘or’’ at 
the end of clause (iii), by inserting ‘‘or’’ at the end 
of clause (iv), and by adding at the end the following 
new clause: 
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mechanical power (or combination thereof), 
and 
‘‘(C) the energy efficiency percentage of 
which exceeds 60 percent. 
‘‘(2) LIMITATION.— 
‘‘(A) IN GENERAL.—In the case of com-
bined heat and power system property with an 
electrical capacity in excess of the applicable ca-
pacity placed in service during the taxable year, 
the credit under subsection (a)(1) (determined 
without regard to this paragraph) for such year 
shall be equal to the amount which bears the 
same ratio to such credit as the applicable ca-
pacity bears to the capacity of such property. 
‘‘(B) APPLICABLE
CAPACITY.—For pur-
poses of subparagraph (A), the term ‘applicable 
capacity’ means 15 megawatts or a mechanical 
energy capacity of more than 20,000 horse-
power or an equivalent combination of electrical 
and mechanical energy capacities. 
‘‘(C) 
MAXIMUM
CAPACITY.—The 
term 
‘combined heat and power system property’ 
shall not include any property comprising a sys-
tem if such system has a capacity in excess of 
50 megawatts or a mechanical energy capacity 
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in excess of 67,000 horsepower or an equivalent 
combination of electrical and mechanical energy 
capacities. 
‘‘(3) SPECIAL RULES.— 
‘‘(A) 
ENERGY
EFFICIENCY
PERCENT-
AGE.—For purposes of this subsection, the en-
ergy efficiency percentage of a system is the 
fraction— 
‘‘(i) the numerator of which is the 
total useful electrical, thermal, and me-
chanical power produced by the system at 
normal operating rates, and expected to be 
consumed in its normal application, and 
‘‘(ii) the denominator of which is the 
lower heating value of the fuel sources for 
the system. 
‘‘(B) DETERMINATIONS
MADE
ON
BTU 
BASIS.—The energy efficiency percentage and 
the percentages under paragraph (1)(B) shall 
be determined on a Btu basis. 
‘‘(C) INPUT AND OUTPUT PROPERTY NOT 
INCLUDED.—The term ‘combined heat and 
power system property’ does not include prop-
erty used to transport the energy source to the 
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facility or to distribute energy produced by the 
facility. 
‘‘(4) SYSTEMS USING BIOMASS.—If a system is 
designed to use biomass (within the meaning of 
paragraphs (2) and (3) of section 45(c) without re-
gard to the last sentence of paragraph (3)(A)) for at 
least 90 percent of the energy source— 
‘‘(A) paragraph (1)(C) shall not apply, but 
‘‘(B) the amount of credit determined 
under subsection (a) with respect to such sys-
tem shall not exceed the amount which bears 
the same ratio to such amount of credit (deter-
mined without regard to this paragraph) as the 
energy efficiency percentage of such system 
bears to 60 percent.’’. 
(d) INCREASE OF CREDIT LIMITATION FOR FUEL 
CELL PROPERTY.—Subparagraph (B) of section 48(c)(1) 
is amended by striking ‘‘$500’’ and inserting ‘‘$1,500’’. 
(e) PUBLIC UTILITY PROPERTY TAKEN INTO AC-
COUNT.— 
(1) IN
GENERAL.—Paragraph (3) of section 
48(a) is amended by striking the second sentence 
thereof. 
(2) CONFORMING AMENDMENTS.— 
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(A) Paragraph (1) of section 48(c) is 
amended by striking subparagraph (D) and re-
designating subparagraph (E) as subparagraph 
(D). 
(B) Paragraph (2) of section 48(c) is 
amended by striking subparagraph (D) and re-
designating subparagraph (E) as subparagraph 
(D). 
(f) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall take effect on the date of the en-
actment of this Act. 
(2) ALLOWANCE AGAINST ALTERNATIVE MIN-
IMUM TAX.—The amendments made by subsection 
(b) shall apply to credits determined under section 
46 of the Internal Revenue Code of 1986 in taxable 
years beginning after the date of the enactment of 
this Act and to carrybacks of such credits. 
(3) COMBINED HEAT AND POWER AND FUEL 
CELL PROPERTY.—The amendments made by sub-
sections (c) and (d) shall apply to periods after the 
date of the enactment of this Act, in taxable years 
ending after such date, under rules similar to the 
rules of section 48(m) of the Internal Revenue Code 
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of 1986 (as in effect on the day before the date of 
the enactment of the Revenue Reconciliation Act of 
1990). 
(4) PUBLIC UTILITY PROPERTY.—The amend-
ments made by subsection (e) shall apply to periods 
after February 13, 2008, in taxable years ending 
after such date, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 
(as in effect on the day before the date of the enact-
ment of the Revenue Reconciliation Act of 1990). 
SEC. 104. NEW CLEAN RENEWABLE ENERGY BONDS. 
(a) CONFORMING AMENDMENTS.— 
(1) Section 54A(d)(1) is amended by inserting 
‘‘and a new clean renewable energy bond,’’ after 
‘‘qualified forestry conservation bond’’. 
(2) Section 54A(d)(2)(C) is amended by insert-
ing ‘‘or 54C(e)’’ after ‘‘54B(e)’’. 
(b) IN GENERAL.—Subpart I of part IV of sub-
chapter A of chapter 1 is amended by adding at the end 
the following new section: 
‘‘SEC. 54C. NEW CLEAN RENEWABLE ENERGY BONDS. 
‘‘(a) NEW CLEAN RENEWABLE ENERGY BOND.—For 
purposes of this subpart, the term ‘new clean renewable 
energy bond’ means any bond issued as part of an issue 
if— 
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‘‘(1) 100 percent of the available project pro-
ceeds of such issue are to be used for a qualified 
clean renewable energy purpose, 
‘‘(2) the bond is issued by a qualified issuer, 
and 
‘‘(3) the issuer designates such bond for pur-
poses of this section. 
‘‘(b) REDUCED CREDIT AMOUNT.—The annual credit 
determined under section 54A(b) with respect to any new 
clean renewable energy bond shall be 70 percent of the 
amount so determined without regard to this subsection. 
‘‘(c) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.— 
‘‘(1) IN
GENERAL.—The maximum aggregate 
face amount of bonds which may be designated 
under subsection (a) by any issuer shall not exceed 
the limitation amount allocated under this sub-
section to such issuer. 
‘‘(2) NATIONAL
LIMITATION
ON
AMOUNT
OF 
BONDS DESIGNATED.—There is a national new clean 
renewable energy bond limitation of $2,000,000,000 
which shall be allocated by the Secretary as provided 
in paragraph (3), except that— 
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‘‘(A) not more than 331⁄3 percent thereof 
may be allocated to qualified projects of public 
power providers, 
‘‘(B) not more than 331⁄3 percent thereof 
may be allocated to qualified projects of govern-
mental bodies, and 
‘‘(C) not more than 331⁄3 percent thereof 
may be allocated to qualified projects of cooper-
ative electric companies. 
‘‘(3) METHOD OF ALLOCATION.— 
‘‘(A) ALLOCATION AMONG PUBLIC POWER 
PROVIDERS.—After the Secretary determines 
the qualified projects of public power providers 
which are appropriate for receiving an alloca-
tion of the national new clean renewable energy 
bond limitation, the Secretary shall, to the max-
imum extent practicable, make allocations 
among such projects in such manner that the 
amount allocated to each such project bears the 
same ratio to the cost of such project as the 
limitation under paragraph (2)(A) bears to the 
cost of all such projects. 
‘‘(B) ALLOCATION AMONG GOVERNMENTAL 
BODIES AND COOPERATIVE ELECTRIC COMPA-
NIES.—The Secretary shall make allocations of 
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the amount of the national new clean renewable 
energy bond limitation described in paragraphs 
(2)(B) and (2)(C) among qualified projects of 
governmental bodies and cooperative electric 
companies, respectively, in such manner as the 
Secretary determines appropriate. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED RENEWABLE ENERGY FACIL-
ITY.—The term ‘qualified renewable energy facility’ 
means a qualified facility (as determined under sec-
tion 45(d) without regard to paragraphs (8) and 
(10) thereof and to any placed in service date) 
owned by a public power provider, a governmental 
body, or a cooperative electric company. 
‘‘(2) PUBLIC
POWER
PROVIDER.—The term 
‘public power provider’ means a State utility with a 
service obligation, as such terms are defined in sec-
tion 217 of the Federal Power Act (as in effect on 
the date of the enactment of this paragraph). 
‘‘(3) GOVERNMENTAL BODY.—The term ‘gov-
ernmental body’ means any State or Indian tribal 
government, or any political subdivision thereof. 
‘‘(4) COOPERATIVE ELECTRIC COMPANY.—The 
term ‘cooperative electric company’ means a mutual 
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or cooperative electric company described in section 
501(c)(12) or section 1381(a)(2)(C). 
‘‘(5) CLEAN RENEWABLE ENERGY BOND LEND-
ER.—The term ‘clean renewable energy bond lender’ 
means a lender which is a cooperative which is 
owned by, or has outstanding loans to, 100 or more 
cooperative electric companies and is in existence on 
February 1, 2002, and shall include any affiliated 
entity which is controlled by such lender. 
‘‘(6) QUALIFIED ISSUER.—The term ‘qualified 
issuer’ means a public power provider, a cooperative 
electric company, a governmental body, a clean re-
newable energy bond lender, or a not-for-profit elec-
tric utility which has received a loan or loan guar-
antee under the Rural Electrification Act. 
‘‘(e) QUALIFIED CLEAN RENEWABLE ENERGY PUR-
POSE.—For purposes of this section, the term ‘qualified 
clean renewable energy purpose’ means capital expendi-
tures incurred by public power providers or cooperative 
electric companies for one or more qualified renewable en-
ergy facilities.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart I of part IV of subchapter A of chapter 1 is 
amended by adding at the end the following new item: 
‘‘Sec. 54C. New clean renewable energy bonds.’’. 
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(d) APPLICATION OF CERTAIN LABOR STANDARDS 
ON PROJECTS FINANCED UNDER TAX CREDIT BONDS.— 
Subchapter IV of chapter 31 of title 40, United States 
Code, shall apply to projects financed with the proceeds 
of any new clean renewable energy bonds (as defined in 
section 54C of the Internal Revenue Code of 1986). 
(e) EFFECTIVE DATES.—The amendments made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
SEC. 105. ADVANCED NUCLEAR POWER PRODUCTION. 
(a) INCREASE
IN
RATE.—Section 45J(a)(1) is 
amended by striking ‘‘1.8 cents’’ and inserting ‘‘2.25 
cents’’. 
(b) INCREASE IN NATIONAL LIMITATION.—Section 
45J(b)(2) is amended by striking ‘‘6,000 megawatts’’ and 
inserting ‘‘12,000 megawatts’’. 
(c) INCREASE
IN ANNUAL LIMITATION.—Section 
45J(c)(1) is amended by striking ‘‘$125,000,000’’ and in-
serting ‘‘$160,000,000’’. 
(d) EXTENSION OF PLACED IN SERVICE DATE.— 
Section 45J(d)(1)(B) is amended by striking ‘‘and before 
January 1, 2021’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 106. LOAN GUARANTEES FOR CONSTRUCTION OF AD-
VANCED NUCLEAR FACILITIES. 
Section 1702(c) of the Energy Policy Act of 2005 (42 
U.S.C. 16512(c)) is amended by inserting ‘‘, except that 
100 percent of the project cost may be guaranteed in the 
case of an advanced nuclear energy facility’’ after ‘‘guar-
antee is issued’’. 
TITLE II—IMPROVING ENERGY 
EFFICIENCY 
SEC. 201. MAKE PERMANENT THE TAX CREDIT FOR RESI-
DENTIAL ENERGY-EFFICIENT PROPERTY. 
Section 25D is amended by striking subsection (g). 
SEC. 202. MAKE PERMANENT THE ENERGY EFFICIENCY 
CREDIT FOR EXISTING HOMES. 
Section 25C is amended by striking subsection (g). 
SEC. 203. MAKE PERMANENT THE ENERGY EFFICIENCY 
COMMERCIAL BUILDINGS DEDUCTION. 
Section 179D is amended by striking subsection (h). 
SEC. 204. MAKE PERMANENT THE CREDIT FOR PRODUC-
TION OF ENERGY-EFFICIENT APPLIANCES. 
(a) IN GENERAL.—Paragraph (1) of section 45M(b) 
is amended to read as follows: 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the applicable amount in the case of dish-
washers, clothes washers, and refrigerators (as the 
case may be) which meet the requirements of the 
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Energy Star program in effect for the calendar year 
in which such appliance is manufactured is— 
‘‘(A) in the case of dishwashers, the energy 
savings amount, 
‘‘(B) in the case of clothes washers, $100, 
and 
‘‘(C) in the case of refrigerators— 
‘‘(i) which consume at least 15 per-
cent but not more than 20 percent less kil-
owatt hours per year than the 2001 energy 
conservation standards, $75, 
‘‘(ii) which consumes at least 20 per-
cent but not more than 25 percent less kil-
owatt hours per year than the 2001 energy 
conservation standards, $125, and 
‘‘(iii) which consumes at least 25 per-
cent less kilowatt hours per year than the 
2001 
energy 
conservation 
standards, 
$175.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section applies to taxable years beginning after De-
cember 31, 2007. 
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TITLE III—ENHANCING PRODUC-
TION AND DEPLOYMENT OF 
ALTERNATIVE VEHICLES AND 
FUELS 
SEC. 301. CONSUMER INCENTIVES TO PURCHASE AD-
VANCED TECHNOLOGY VEHICLES. 
(a) NEW QUALIFIED HYBRID MOTOR VEHICLES.— 
(1) EXTENSION
OF
ALTERNATIVE
VEHICLE 
CREDIT.—Subsection (i) of section 30B of the Inter-
nal Revenue Code of 1986, as amended by sub-
section (b), is amended by striking paragraph (3). 
(2) INCREASE IN CREDIT AMOUNT.—Subpara-
graph (A) of section 30B(d)(2) of such Code is 
amended by striking ‘‘the sum of’’ and inserting 
‘‘150 percent of the sum of’’. 
(b) ELIMINATION ON NUMBER OF NEW QUALIFIED 
HYBRID AND ADVANCED LEAN BURN TECHNOLOGY VE-
HICLES ELIGIBLE FOR ALTERNATIVE MOTOR VEHICLE 
CREDIT.— 
(1) IN GENERAL.—Section 30B of the Internal 
Revenue Code of 1986 is amended by striking sub-
section (f) and by redesignating subsections (g) 
through (j) as subsections (f) through (i), respec-
tively. 
(2) CONFORMING AMENDMENTS.— 
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(A) Paragraphs (4) and (6) of section 
30B(h) of the Internal Revenue Code of 1986 
are each amended by striking ‘‘(determined 
without regard to subsection (g))’’ and inserting 
‘‘determined without regard to subsection (f))’’. 
(B) Section 38(b)(25) of such Code is 
amended by striking ‘‘section 30B(g)(1)’’ and 
inserting ‘‘section 30B(f)(1)’’. 
(C) Section 55(c)(2) of such Code is 
amended by striking ‘‘section 30B(g)(2)’’ and 
inserting ‘‘section 30B(f)(2)’’. 
(D) Section 1016(a)(36) of such Code is 
amended by striking ‘‘section 30B(h)(4)’’ and 
inserting ‘‘section 30B(g)(4)’’. 
(E) Section 6501(m) of such Code is 
amended by striking ‘‘section 30B(h)(9)’’ and 
inserting ‘‘section 30B(g)(9)’’. 
(c) CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC 
DRIVE MOTOR VEHICLES.— 
(1) IN GENERAL.—Subpart B of part IV of 
subchapter A of chapter 1 is amended by adding at 
the end the following new section: 
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‘‘SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 
MOTOR VEHICLES. 
‘‘(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 the 
credit amounts determined under subsection (b) with re-
spect to each new qualified plug-in electric drive motor ve-
hicle placed in service by the taxpayer during the taxable 
year. 
‘‘(b) PER VEHICLE DOLLAR LIMITATION.— 
‘‘(1) IN
GENERAL.—The amount determined 
under this subsection with respect to any new quali-
fied plug-in electric drive motor vehicle is the sum 
of the amounts determined under paragraphs (2) 
and (3) with respect to such vehicle. 
‘‘(2) BASE AMOUNT.—The amount determined 
under this paragraph is $3,000. 
‘‘(3) BATTERY CAPACITY.—In the case of a ve-
hicle which draws propulsion energy from a battery 
with not less than 5 kilowatt hours of capacity, the 
amount determined under this paragraph is $200, 
plus $400 for each kilowatt hour of capacity in ex-
cess of 5 kilowatt hours. The amount determined 
under this paragraph shall not exceed $4,000. 
‘‘(c) APPLICATION WITH OTHER CREDITS.— 
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‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—So much of the credit 
which would be allowed under subsection (a) for any 
taxable year (determined without regard to this sub-
section) that is attributable to property of a char-
acter subject to an allowance for depreciation shall 
be treated as a credit listed in section 38(b) for such 
taxable year (and not allowed under subsection (a)). 
‘‘(2) PERSONAL CREDIT.— 
‘‘(A) IN GENERAL.—For purposes of this 
title, the credit allowed under subsection (a) for 
any taxable year (determined after application 
of paragraph (1)) shall be treated as a credit 
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 
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‘‘(ii) the sum of the credits allowable 
under subpart A (other than this section 
and sections 23 and 25D) and section 27 
for the taxable year. 
‘‘(d) NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 
MOTOR VEHICLE.—For purposes of this section— 
‘‘(1) IN
GENERAL.—The term ‘new qualified 
plug-in electric drive motor vehicle’ means a motor 
vehicle (as defined in section 30(c)(2))— 
‘‘(A) the original use of which commences 
with the taxpayer, 
‘‘(B) which is acquired for use or lease by 
the taxpayer and not for resale, 
‘‘(C) which is made by a manufacturer, 
and 
‘‘(D) which is propelled to a significant ex-
tent by an electric motor which draws electricity 
from a battery which— 
‘‘(i) has a capacity of not less than 
2.5 kilowatt hours, and 
‘‘(ii) is capable of being recharged 
from an external source of electricity. 
‘‘(2) EXCEPTION.—The term ‘new qualified 
plug-in electric drive motor vehicle’ is limited to ve-
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hicles meeting relevant Federal safety and emissions 
standards for on-road use. 
‘‘(3) OTHER
TERMS.—The terms ‘passenger 
automobile’, ‘light truck’, and ‘manufacturer’ have 
the meanings given such terms in regulations pre-
scribed by the Administrator of the Environmental 
Protection Agency for purposes of the administra-
tion of title II of the Clean Air Act (42 U.S.C. 7521 
et seq.). 
‘‘(4) BATTERY CAPACITY.—The term ‘capacity’ 
means, with respect to any battery, the quantity of 
electricity which the battery is capable of storing, ex-
pressed in kilowatt hours, as measured from a 100 
percent state of charge to a 0 percent state of 
charge. 
‘‘(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 (c)). 
‘‘(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. 
‘‘(5) PROPERTY USED BY TAX-EXEMPT ENTITY; 
INTERACTION WITH AIR QUALITY AND MOTOR VEHI-
CLE SAFETY STANDARDS.—Rules similar to the rules 
of paragraphs (6) and (10) of section 30B(h) shall 
apply for purposes of this section.’’. 
(2) COORDINATION WITH ALTERNATIVE MOTOR 
VEHICLE
CREDIT.—Section 30B(d)(3) is amended 
by adding at the end the following new subpara-
graph: 
‘‘(D) EXCLUSION OF PLUG-IN VEHICLES.— 
Any vehicle with respect to which a credit is al-
lowable under section 30D (determined without 
regard to subsection (c) thereof) shall not be 
taken into account under this section.’’. 
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(3) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) is amended— 
(A) by striking ‘‘and’’ each place it ap-
pears at the end of any paragraph, 
(B) by striking ‘‘plus’’ each place it ap-
pears at the end of any paragraph, 
(C) by striking the period at the end of 
paragraph (31) and inserting ‘‘, plus’’, and 
(D) by adding at the end the following new 
paragraph: 
‘‘(32) the portion of the new qualified plug-in 
electric drive motor vehicle credit to which section 
30D(c)(1) applies.’’. 
(4) CONFORMING AMENDMENTS.— 
(A)(i) Section 24(b)(3)(B), as amended by 
section 104, is amended by striking ‘‘and 25D’’ 
and inserting ‘‘25D, and 30D’’. 
(ii) Section 25(e)(1)(C)(ii) is amended by 
inserting ‘‘30D,’’ after ‘‘25D,’’. 
(iii) Section 25B(g)(2), as amended by sec-
tion 104, is amended by striking ‘‘and 25D’’ 
and inserting ‘‘, 25D, and 30D’’. 
(iv) Section 26(a)(1), as amended by sec-
tion 104, is amended by striking ‘‘and 25D’’ 
and inserting ‘‘25D, and 30D’’. 
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