‘‘(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,