†
742
HR 6 EAS1S/PP
‘‘(iii) $2,000, if such vehicle achieves
at least 200 percent but less than 225 per-
cent of the 2000 model year city fuel econ-
omy,
‘‘(iv) $2,500, if such vehicle achieves at
least 225 percent but less than 250 percent
of the 2000 model year city fuel economy,
‘‘(v) $3,000, if such vehicle achieves at
least 250 percent but less than 275 percent
of the 2000 model year city fuel economy,
‘‘(vi) $3,500, if such vehicle achieves at
least 275 percent but less than 300 percent
of the 2000 model year city fuel economy,
and
‘‘(vii) $4,000, if such vehicle achieves
at least 300 percent of the 2000 model year
city fuel economy.
‘‘(B) 2000 MODEL YEAR CITY FUEL ECON-
OMY.—For purposes of subparagraph (A), the
2000 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 2000 model year city
‘‘If vehicle inertia weight class is:
fuel economy is:
1,500 or 1,750 lbs ..........................................................................
43.7 mpg
2,000 lbs ..........................................................................................
38.3 mpg
†
743
HR 6 EAS1S/PP
The 2000 model year city
‘‘If vehicle inertia weight class is:
fuel economy is:
2,250 lbs ..........................................................................................
34.1 mpg
2,500 lbs ..........................................................................................
30.7 mpg
2,750 lbs ..........................................................................................
27.9 mpg
3,000 lbs ..........................................................................................
25.6 mpg
3,500 lbs ..........................................................................................
22.0 mpg
4,000 lbs ..........................................................................................
19.3 mpg
4,500 lbs ..........................................................................................
17.2 mpg
5,000 lbs ..........................................................................................
15.5 mpg
5,500 lbs ..........................................................................................
14.1 mpg
6,000 lbs ..........................................................................................
12.9 mpg
6,500 lbs ..........................................................................................
11.9 mpg
7,000 to 8,500 lbs ...........................................................................
11.1 mpg.
‘‘(ii) In the case of a light truck:
The 2000 model year city
‘‘If vehicle inertia weight class is:
fuel economy is:
1,500 or 1,750 lbs ..........................................................................
37.6 mpg
2,000 lbs ..........................................................................................
33.7 mpg
2,250 lbs ..........................................................................................
30.6 mpg
2,500 lbs ..........................................................................................
28.0 mpg
2,750 lbs ..........................................................................................
25.9 mpg
3,000 lbs ..........................................................................................
24.1 mpg
3,500 lbs ..........................................................................................
21.3 mpg
4,000 lbs ..........................................................................................
19.0 mpg
4,500 lbs ..........................................................................................
17.3 mpg
5,000 lbs ..........................................................................................
15.8 mpg
5,500 lbs ..........................................................................................
14.6 mpg
6,000 lbs ..........................................................................................
13.6 mpg
6,500 lbs ..........................................................................................
12.8 mpg
7,000 to 8,500 lbs ...........................................................................
12.0 mpg.
‘‘(C) VEHICLE INERTIA WEIGHT CLASS.—
For purposes of subparagraph (B), the term ‘ve-
hicle inertia weight class’ has the same meaning
as when defined in regulations prescribed by the
Administrator of the Environmental 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
†
744
HR 6 EAS1S/PP
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 re-
quire reformation prior to use,
‘‘(B) which, in the case of a passenger auto-
mobile 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 section
243(e)(2) of the Clean Air Act for that make
and model year, and
‘‘(ii) for 2004 and later model vehicles,
has received a certificate that such vehicle
meets or exceeds the Bin 5 Tier II emission
level established in regulations prescribed by
the Administrator of the Environmental
Protection Agency under section 202(i) of
the Clean Air Act for that make and model
year vehicle,
†
745
HR 6 EAS1S/PP
‘‘(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 CRED-
IT.—
‘‘(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 or light truck and which pro-
vides the following percentage of the max-
imum 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.
†
746
HR 6 EAS1S/PP
‘‘(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 avail-
able power:
‘‘(I) If such vehicle has a gross ve-
hicle 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
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.
†
747
HR 6 EAS1S/PP
‘‘(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 2000 model year city
fuel economy,
‘‘(II) 
$1,000, 
if 
such 
vehicle
achieves at least 150 percent but less
than 175 percent of the 2000 model
year city fuel economy,
‘‘(III) $1,500, if such vehicle
achieves at least 175 percent but less
than 200 percent of the 2000 model
year city fuel economy,
‘‘(IV) $2,000, if such vehicle
achieves at least 200 percent but less
than 225 percent of the 2000 model
year city fuel economy,
‘‘(V) 
$2,500, 
if 
such 
vehicle
achieves at least 225 percent but less
†
748
HR 6 EAS1S/PP
than 250 percent of the 2000 model
year city fuel economy, and
‘‘(VI) $3,000, if such vehicle
achieves at least 250 percent of the
2000 model year city fuel economy.
‘‘(ii) 2000 MODEL
YEAR
CITY
FUEL
ECONOMY.—For purposes of clause (i), the
2000 model year city fuel economy with re-
spect to a vehicle shall be determined using
the tables provided in subsection (b)(2)(B)
with respect to such vehicle.
‘‘(C) INCREASE
FOR
ACCELERATED
EMIS-
SIONS PERFORMANCE.—The amount determined
under subparagraph (A)(ii) with respect to an
applicable heavy duty hybrid motor vehicle shall
be increased by the increased credit amount de-
termined in accordance with the following 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:
2002 ................................................................................................
$3,500
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
†
749
HR 6 EAS1S/PP
14,000 pounds but not more than 26,000
pounds:
‘‘If the model year is:
The increased credit amount is:
2002 ................................................................................................
$9,000
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:
2002 ................................................................................................
$14,000
2003 ................................................................................................
$12,000
2004 ................................................................................................
$10,000
2005 ................................................................................................
$8,000
2006 ................................................................................................
$6,000.
‘‘(D) DEFINITIONS.—
‘‘(i) APPLICABLE HEAVY DUTY HYBRID
MOTOR VEHICLE.—For purposes of subpara-
graph (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 Environmental
Protection Agency for 2007 and later model
year diesel heavy duty engines, or for 2008
and later model year ottocycle heavy duty
engines, as applicable.
†
750
HR 6 EAS1S/PP
‘‘(ii) HEAVY DUTY HYBRID MOTOR VE-
HICLE.—For purposes of this paragraph,
the term ‘heavy duty hybrid motor vehicle’
means a new qualified hybrid motor vehicle
which has a gross vehicle weight rating of
more than 10,000 pounds and draws pro-
pulsion energy from both of the following
onboard sources of stored energy:
‘‘(I) An internal combustion or
heat engine using consumable fuel
which, for 2002 and later model vehi-
cles, has received a certificate of con-
formity under the Clean Air Act and
meets or exceeds a level of not greater
than 3.0 grams per brake horsepower–
hour of oxides of nitrogen and 0.01 per
brake horsepower–hour of particulate
matter.
‘‘(II) A rechargeable energy stor-
age system.
‘‘(iii) MAXIMUM AVAILABLE POWER.—
‘‘(I) PASSENGER AUTOMOBILE OR
LIGHT TRUCK.—For purposes of sub-
paragraph (A)(i), the term ‘maximum
available power’ means the maximum
†
751
HR 6 EAS1S/PP
power available from the rechargeable
energy storage system, during a stand-
ard 10 second pulse power or equiva-
lent test, divided by such maximum
power and the SAE net power of the
heat engine.
‘‘(II) HEAVY DUTY HYBRID MOTOR
VEHICLE.—For purposes of subpara-
graph (A)(ii), the term ‘maximum
available power’ means the maximum
power available from the rechargeable
energy storage system, during a stand-
ard 10 second pulse power or equiva-
lent test, divided by the vehicle’s total
traction power. The term ‘total trac-
tion 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.
‘‘(3) NEW
QUALIFIED
HYBRID
MOTOR
VEHI-
CLE.—For purposes of this subsection, the term ‘new
†
752
HR 6 EAS1S/PP
qualified hybrid motor vehicle’ means a motor
vehicle—
‘‘(A) which draws propulsion energy from
onboard sources of stored energy which are
both—
‘‘(i) an internal combustion or heat en-
gine using combustible fuel, and
‘‘(ii) a rechargeable energy storage sys-
tem,
‘‘(B) which, in the case of a passenger auto-
mobile 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 section
243(e)(2) of the Clean Air Act for that make
and model year, and
‘‘(ii) for 2004 and later model vehicles,
has received a certificate that such vehicle
meets or exceeds the Bin 5 Tier II emission
level established in regulations prescribed by
the Administrator of the Environmental
Protection Agency under section 202(i) of
†
753
HR 6 EAS1S/PP
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.
‘‘(d) NEW QUALIFIED ALTERNATIVE FUEL MOTOR VE-
HICLE CREDIT.—
‘‘(1) ALLOWANCE OF CREDIT.—Except as pro-
vided in paragraph (5), the credit determined under
this subsection is an amount equal to the applicable
percentage of the incremental cost of any new quali-
fied alternative 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 vehi-
cle 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
†
754
HR 6 EAS1S/PP
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 waiver
granted under section 209(b) of the Clean
Air Act) for that make and model year vehi-
cle (other than a zero emission standard).
‘‘(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 suggested 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 exceed—
‘‘(A) $5,000, if such vehicle has a gross ve-
hicle weight rating of not more than 8,500
pounds,
‘‘(B) $10,000, if such vehicle has a gross ve-
hicle weight rating of more than 8,500 pounds
but not more than 14,000 pounds,
†
755
HR 6 EAS1S/PP
‘‘(C) $25,000, if such vehicle has a gross ve-
hicle 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 ve-
hicle weight rating of more than 26,000 pounds.
‘‘(4) QUALIFIED ALTERNATIVE FUEL MOTOR VE-
HICLE DEFINED.—For purposes of this subsection—
‘‘(A) IN GENERAL.—The term ‘qualified al-
ternative fuel motor vehicle’ means any motor
vehicle—
‘‘(i) which is only capable of operating
on an alternative fuel,
‘‘(ii) the original use of which com-
mences with the taxpayer,
‘‘(iii) which is acquired by the tax-
payer for use or lease, but not for resale,
and
‘‘(iv) which is made by a manufac-
turer.
‘‘(B) ALTERNATIVE FUEL.—The term ‘alter-
native fuel’ means compressed natural gas, lique-
fied natural gas, liquefied petroleum gas, hydro-
gen, and any liquid at least 85 percent of the
volume of which consists of methanol.
‘‘(5) CREDIT FOR MIXED-FUEL VEHICLES.—
†
756
HR 6 EAS1S/PP
‘‘(A) IN GENERAL.—In the case of a mixed-
fuel vehicle placed in service by the taxpayer
during the taxable year, the credit determined
under this subsection is an amount equal to—
‘‘(i) in the case of a 75/25 mixed-fuel
vehicle, 70 percent of the credit which would
have been allowed under this subsection if
such vehicle was a qualified alternative fuel
motor vehicle, and
‘‘(ii) in the case of a 90/10 mixed-fuel
vehicle, 90 percent of the credit which would
have been allowed under this subsection if
such vehicle was a qualified alternative fuel
motor vehicle.
‘‘(B) MIXED-FUEL VEHICLE.—For purposes
of this subsection, the term ‘mixed-fuel vehicle’
means any motor vehicle described in subpara-
graph (C) or (D) of paragraph (3), which—
‘‘(i) is certified by the manufacturer as
being able to perform efficiently in normal
operation on a combination of an alter-
native fuel and a petroleum-based fuel,
‘‘(ii) either—
‘‘(I) has received a certificate of
conformity under the Clean Air Act, or
†
757
HR 6 EAS1S/PP
‘‘(II) has received an order certi-
fying the vehicle as meeting the same
requirements as vehicles which may be
sold or leased in California and meets
or exceeds the low emission vehicle
standard under section 88.105-94 of
title 40, Code of Federal Regulations,
for that make and model year vehicle,
‘‘(iii) the original use of which com-
mences with the taxpayer,
‘‘(iv) which is acquired by the tax-
payer for use or lease, but not for resale,
and
‘‘(v) which is made by a manufacturer.
‘‘(C) 75/25 
MIXED-FUEL
VEHICLE.—For
purposes of this subsection, the term ‘75/25
mixed-fuel vehicle’ means a mixed-fuel vehicle
which operates using at least 75 percent alter-
native fuel and not more than 25 percent petro-
leum-based fuel.
‘‘(D) 90/10 
MIXED-FUEL
VEHICLE.—For
purposes of this subsection, the term ‘90/10
mixed-fuel vehicle’ means a mixed-fuel vehicle
which operates using at least 90 percent alter-