I 
108TH CONGRESS 
1ST SESSION H. R. 1054
To amend the Internal Revenue Code of 1986 to encourage and accelerate 
the nationwide production, retail sale, and consumer use of new motor 
vehicles that are powered by fuel cell technology, hybrid technology, 
battery electric technology, alternative fuels, or other advanced motor 
vehicle technologies, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 4, 2003
Mr. CAMP (for himself, Mrs. BONO, and Mr. RAMSTAD) 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 encourage 
and accelerate the nationwide production, retail sale, and 
consumer use of new motor vehicles that are powered 
by fuel cell technology, hybrid technology, battery electric 
technology, alternative fuels, or other advanced motor 
vehicle technologies, and for other purposes.
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 
‘‘Clean Efficient Automobiles Resulting From Advanced 
Car Technologies (CLEAR ACT) Act of 2003’’.
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this division an 
amendment or repeal is expressed in terms of an amend-
ment to, or repeal of, a section or other provision, the ref-
erence shall be considered to be made to a section or other 
provision 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 and purposes. 
Sec. 3. Alternative motor vehicle credit. 
Sec. 4. Modification of credit for qualified electric vehicles. 
Sec. 5. Credit for installation of alternative fueling stations. 
Sec. 6. Credit for retail sale of alternative fuels as motor vehicle fuel. 
Sec. 7. Study of effectiveness of certain provisions by GAO.
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds the following: 
(1) The United States is a large and diverse ge-
ographic area that includes densely populated urban 
and suburban areas along with large sparsely popu-
lated rural areas separated by long distances, and, 
as a result, Americans require reliable, efficient, and 
diversified modes of transportation. 
(2) According to the Energy Information Ad-
ministration’s (referred to in this section as the 
‘‘EIA’’) March 2000 publication ‘‘International En-
ergy Outlook’’, oil currently provides a larger share 
of world energy consumption than any other energy 
source and most of the growth in oil consumption in
industrialized countries, including the United States, 
is projected for the transportation sector, where few 
alternatives are currently economical. 
(3) To meet all its national security, economic 
development, and public health and welfare needs, 
the United States depends on oil as the primary fuel 
source for the transportation of people and goods 
and services in intrastate and interstate commerce. 
(4) Since 1994, the United States has imported 
over 50 percent of the oil it has consumed and the 
EIA expects North American petroleum imports 
from the Persian Gulf to more than double over the 
forecast period of 1997–2020, with additional im-
ports from offshore Atlantic Basin producers and re-
finers; this increasingly heavy reliance on imported 
oil presents national security risks, contributes nega-
tively to the balance of trade of the United States, 
and adversely affects the United States economy, 
public health, and the environment. 
(5) The United States currently has 121 areas 
containing over a third of its population that do not 
meet the National Ambient Air Quality Standards 
resulting in losses of many billions of dollars in extra 
economic costs and lost opportunities, immeasurable
health problems, and a general reduction in the 
quality of life for millions of Americans. 
(6) Mobile sources have become a top cause of 
emissions in the United States. 
(7) This heavy reliance on imported oil and fail-
ure to meet the National Ambient Air Quality 
Standards demonstrate the need to accelerate devel-
opment of advanced fuel cell technology, hybrid tech-
nology, battery electric technology, and alternative 
fuels technology for new motor vehicles in the trans-
portation of people and goods and services as an im-
portant means of helping to reverse the trends of in-
creasing dependence on oil imports and non-attain-
ment of air quality standards, contributing to less-
ening national security risks, improving our balance 
of trade with other nations, increasing economic 
growth, improving health and quality of life for mil-
lions of Americans, and providing public health, wel-
fare, and economic benefits. 
(8) Despite the availability of significant Fed-
eral and private sector funds and programs to en-
courage technological advancement for the develop-
ment and use of motor vehicles that are powered by 
fuel cell and hybrid technologies, battery electric 
technology, and alternative technologies, consumer
acceptance of such vehicles and fuels has been re-
strained by 3 major barriers—the increased costs of 
these technologies, the cost of alternative fuels, and 
the lack of adequate infrastructure to refuel the al-
ternative-fueled vehicles. 
(b) PURPOSES.—The purposes of this Act are to—
(1) help instill consumer confidence and accept-
ance of alternative motor vehicles by lowering the 3 
major barriers to this confidence and acceptance; 
(2) enable the accelerated introduction into the 
marketplace of new motor vehicle technologies with-
out adverse emission impact, while retaining a policy 
of fuel neutrality in order to foster private innova-
tion and commercialization and allow market forces 
to decide the technologies and fuels that are con-
sumer-friendly, safe, environmentally sound, and 
economic; 
(3) provide, for a limited time period, financial 
incentives to encourage consumers nationwide to 
purchase or lease new fuel cell, hybrid, battery elec-
tric, and alternative fuel motor vehicles;
(4) increase demand of such vehicles so as to 
make the annual production by manufacturers and 
retail sale of such vehicles economically and commer-
cially viable for the consumer;
(5) promote and expand the use of such vehicles 
nationwide; and 
(6) promote a nationwide diversity of motor ve-
hicle fuels for advanced and hybrid technology and 
alternatively fueled motor vehicles. 
SEC. 3. ALTERNATIVE MOTOR VEHICLE CREDIT. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 (relating to foreign tax credit, etc.) 
is amended by adding at the end the following new section: 
‘‘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 qualified hybrid motor vehicle 
credit determined under subsection (c), and 
‘‘(3) the new qualified alternative fuel motor ve-
hicle credit determined under subsection (d). 
‘‘(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 is—
‘‘(A) $8,000 ($4,000 in the case of vehicles 
placed in service after December 31, 2008), if 
such vehicle has a gross vehicle weight rating of 
not more than 8,500 pounds, 
‘‘(B) $10,000, if such vehicle has a gross 
vehicle weight rating of more than 8,500 
pounds but not more than 14,000 pounds, 
‘‘(C) $20,000, if such vehicle has a gross 
vehicle weight rating of more than 14,000 
pounds but not more than 26,000 pounds, and 
‘‘(D) $40,000, if such vehicle has a gross 
vehicle weight rating of more than 26,000 
pounds. 
‘‘(2) INCREASE FOR FUEL EFFICIENCY.—
‘‘(A) IN
GENERAL.—The amount deter-
mined under paragraph (1)(A) with respect to 
a new qualified fuel cell motor vehicle which is 
a passenger automobile or light truck shall be 
increased by—
‘‘(i) $1,000, if such vehicle achieves at 
least 150 percent but less than 175 per-
cent of the 2002 model year city fuel econ-
omy,
‘‘(ii) $1,500, if such vehicle achieves 
at least 175 percent but less than 200 per-
cent of the 2002 model year city fuel econ-
omy, 
‘‘(iii) $2,000, if such vehicle achieves 
at least 200 percent but less than 225 per-
cent of the 2002 model year city fuel econ-
omy, 
‘‘(iv) $2,500, if such vehicle achieves 
at least 225 percent but less than 250 per-
cent of the 2002 model year city fuel econ-
omy, 
‘‘(v) $3,000, if such vehicle achieves 
at least 250 percent but less than 275 per-
cent of the 2002 model year city fuel econ-
omy, 
‘‘(vi) $3,500, if such vehicle achieves 
at least 275 percent but less than 300 per-
cent of the 2002 model year city fuel econ-
omy, and 
‘‘(vii) $4,000, if such vehicle achieves 
at least 300 percent of the 2002 model 
year city fuel economy. 
‘‘(B) 2002 MODEL YEAR CITY FUEL ECON-
OMY.—For purposes of subparagraph (A), the
2002 model year city fuel economy with respect 
to a vehicle shall be determined in accordance 
with the following tables: 
‘‘(i) In the case of a passenger auto-
mobile:
The 2002 model year city 
‘‘If vehicle inertia weight class is: 
fuel economy is: 
1,500 or 1,750 lbs ....................................................................
45.2 mpg
2,000 lbs ..................................................................................
39.6 mpg
2,250 lbs ..................................................................................
35.2 mpg
2,500 lbs ..................................................................................
31.7 mpg
2,750 lbs ..................................................................................
28.8 mpg
3,000 lbs ..................................................................................
26.4 mpg
3,500 lbs ..................................................................................
22.6 mpg
4,000 lbs ..................................................................................
19.8 mpg
4,500 lbs ..................................................................................
17.6 mpg
5,000 lbs ..................................................................................
15.9 mpg
5,500 lbs ..................................................................................
14.4 mpg
6,000 lbs ..................................................................................
13.2 mpg
6,500 lbs ..................................................................................
12.2 mpg
7,000 to 8,500 lbs ....................................................................
11.3 mpg.
‘‘(ii) In the case of a light truck:
The 2002 model year city 
‘‘If vehicle inertia weight class is: 
fuel economy is: 
1,500 or 1,750 lbs ....................................................................
39.4 mpg
2,000 lbs ..................................................................................
35.2 mpg
2,250 lbs ..................................................................................
31.8 mpg
2,500 lbs ..................................................................................
29.0 mpg
2,750 lbs ..................................................................................
26.8 mpg
3,000 lbs ..................................................................................
24.9 mpg
3,500 lbs ..................................................................................
21.8 mpg
4,000 lbs ..................................................................................
19.4 mpg
4,500 lbs ..................................................................................
17.6 mpg
5,000 lbs ..................................................................................
16.1 mpg
5,500 lbs ..................................................................................
14.8 mpg
6,000 lbs ..................................................................................
13.7 mpg
6,500 lbs ..................................................................................
12.8 mpg
7,000 to 8,500 lbs ....................................................................
12.1 mpg.
‘‘(C) VEHICLE INERTIA WEIGHT CLASS.—
For purposes of subparagraph (B), the term 
‘vehicle inertia weight class’ has the same 
meaning as when defined in regulations pre-
scribed by the Administrator of the Environ-
mental Protection Agency for purposes of the 
administration of title II of the Clean Air Act 
(42 U.S.C. 7521 et seq.). 
‘‘(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—
‘‘(i) for 2002 and later model vehicles, 
has received a certificate of conformity 
under the Clean Air Act and meets or ex-
ceeds the equivalent qualifying California 
low emission vehicle standard under sec-
tion 243(e)(2) of the Clean Air Act for 
that make and model year, and 
‘‘(ii) for 2004 and later model vehi-
cles, has received a certificate that such ve-
hicle meets or exceeds the Bin 5 Tier II 
emission level 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 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) IN GENERAL.—The credit amount de-
termined under this paragraph shall be deter-
mined in accordance with the following tables: 
‘‘(i) In the case of a new qualified hy-
brid motor vehicle which is a passenger
automobile, medium duty passenger vehi-
cle, or light truck and which provides the 
following percentage of the maximum 
available power:
‘‘If percentage of the maximum 
available power is: 
The credit amount is: 
At least 5 percent but less than 10 percent ............................
$250
At least 10 percent but less than 20 percent ..........................
$500
At least 20 percent but less than 30 percent ..........................
$750
At least 30 percent ..................................................................
$1,000.
‘‘(ii) In the case of a new qualified hy-
brid motor vehicle which is a heavy duty 
hybrid motor vehicle and which provides 
the following percentage of the maximum 
available power: 
‘‘(I) If such vehicle has a gross 
vehicle weight rating of not more than 
14,000 pounds:
‘‘If percentage of the maximum 
available power is: 
The credit amount is: 
At least 20 percent but less than 30 percent ..........................
$1,000
At least 30 percent but less than 40 percent ..........................
$1,750
At least 40 percent but less than 50 percent ..........................
$2,000
At least 50 percent but less than 60 percent ..........................
$2,250
At least 60 percent ..................................................................
$2,500.
‘‘(II) If such vehicle has a gross 
vehicle weight rating of more than 
14,000 but not more than 26,000 
pounds:
‘‘If percentage of the maximum 
available power is: 
The credit amount is: 
At least 20 percent but less than 30 percent ..........................
$4,000
At least 30 percent but less than 40 percent ..........................
$4,500
At least 40 percent but less than 50 percent ..........................
$5,000
‘‘If percentage of the maximum 
available power is: 
The credit amount is: 
At least 50 percent but less than 60 percent ..........................
$5,500
At least 60 percent ..................................................................
$6,000.
‘‘(III) If such vehicle has a gross 
vehicle weight rating of more than 
26,000 pounds:
‘‘If percentage of the maximum 
available power is: 
The credit amount is: 
At least 20 percent but less than 30 percent ..........................
$6,000
At least 30 percent but less than 40 percent ..........................
$7,000
At least 40 percent but less than 50 percent ..........................
$8,000
At least 50 percent but less than 60 percent ..........................
$9,000
At least 60 percent ..................................................................
$10,000.
‘‘(B) INCREASE FOR FUEL EFFICIENCY.—
‘‘(i) AMOUNT.—The amount deter-
mined under subparagraph (A)(i) with re-
spect to a new qualified hybrid motor vehi-
cle which is a passenger automobile or 
light truck shall be increased by—
‘‘(I) 
$500, 
if 
such 
vehicle 
achieves at least 125 percent but less 
than 150 percent of the 2002 model 
year city fuel economy, 
‘‘(II) $1,000, if such vehicle 
achieves at least 150 percent but less 
than 175 percent of the 2002 model 
year city fuel economy, 
‘‘(III) $1,500, if such vehicle 
achieves at least 175 percent but less
than 200 percent of the 2002 model 
year city fuel economy, 
‘‘(IV) $2,000, if such vehicle 
achieves at least 200 percent but less 
than 225 percent of the 2002 model 
year city fuel economy, 
‘‘(V) $2,500, if such vehicle 
achieves at least 225 percent but less 
than 250 percent of the 2002 model 
year city fuel economy, and 
‘‘(VI) $3,000, if such vehicle 
achieves at least 250 percent of the 
2002 model year city fuel economy. 
‘‘(ii) 2002 MODEL YEAR CITY FUEL 
ECONOMY.—For purposes of clause (i), the 
2002 model year city fuel economy with re-
spect to a vehicle shall be determined on a 
gasoline gallon equivalent basis as deter-
mined by the Administrator of the Envi-
ronmental Protection Agency using the ta-
bles provided in subsection (b)(2)(B) with 
respect to such vehicle. 
‘‘(C) INCREASE FOR ACCELERATED EMIS-
SIONS
PERFORMANCE.—The amount deter-
mined under subparagraph (A)(ii) with respect
to an applicable heavy duty hybrid motor vehi-
cle shall be increased by the increased credit 
amount determined in accordance with the fol-
lowing tables: 
‘‘(i) In the case of a vehicle which has 
a gross vehicle weight rating of not more 
than 14,000 pounds:
‘‘If the model year is: 
The increased credit amount is: 
2003 .........................................................................................
$3,000
2004 .........................................................................................
$2,500
2005 .........................................................................................
$2,000
2006 .........................................................................................
$1,500.
‘‘(ii) In the case of a vehicle which 
has a gross vehicle weight rating of more 
than 14,000 pounds but not more than 
26,000 pounds:
‘‘If the model year is: 
The increased credit amount is: 
2003 .........................................................................................
$7,750
2004 .........................................................................................
$6,500
2005 .........................................................................................
$5,250
2006 .........................................................................................
$4,000.
‘‘(iii) In the case of a vehicle which 
has a gross vehicle weight rating of more 
than 26,000 pounds:
‘‘If the model year is: 
The increased credit amount is: 
2003 .........................................................................................
$12,000
2004 .........................................................................................
$10,000
2005 .........................................................................................
$8,000
2006 .........................................................................................
$6,000.
‘‘(D) DEFINITIONS RELATING TO CREDIT 
AMOUNT.—
‘‘(i) APPLICABLE
HEAVY
DUTY
HY-
BRID MOTOR VEHICLE.—For purposes of 
subparagraph (C), the term ‘applicable 
heavy duty hybrid motor vehicle’ means a 
heavy duty hybrid motor vehicle which is 
powered by an internal combustion or heat 
engine which is certified as meeting the 
emission standards set in the regulations 
prescribed by the Administrator of the En-
vironmental Protection Agency for 2007 
and later model year diesel heavy duty en-
gines, or for 2008 and later model year 
ottocycle heavy duty engines, as applicable. 
‘‘(ii) MAXIMUM AVAILABLE POWER.—
‘‘(I) PASSENGER
AUTOMOBILE, 
MEDIUM DUTY PASSENGER VEHICLE, 
OR LIGHT TRUCK.—For purposes of 
subparagraph (A)(i), the term ‘max-
imum available power’ means the 
maximum power available from the re-
chargeable energy storage system, 
during a standard 10 second pulse 
power or equivalent test, divided by 
such maximum power and the SAE 
net power of the heat engine.