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‘‘(E) that has received a certificate that 
such vehicle meets or exceeds the Bin 8 Tier II 
emission level established in regulations pre-
scribed by the Administrator of the Environ-
mental Protection Agency under section 202(i) 
of the Clean Air Act. 
‘‘(2) LIFETIME FUEL SAVINGS.—The term ‘life-
time fuel savings’ means, with respect to a qualified 
advanced lean burn technology motor vehicle, an 
amount equal to the excess (if any) of— 
‘‘(A) 120,000 divided by the 2000 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. 
‘‘(3) 2000 MODEL
YEAR
CITY
FUEL
ECON-
OMY.—The 2000 model year city fuel economy with 
respect to a vehicle shall be determined in accord-
ance with the following tables: 
‘‘(A) In the case of a passenger auto-
mobile: 
‘‘If 
vehicle 
inertia 
weight 
class is: 
The 2000 model year city fuel 
economy is: 
1,500 or 1,750 lbs ....................................................................
43.7 mpg 
2,000 lbs ..................................................................................
38.3 mpg 
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
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‘‘If 
vehicle 
inertia 
weight 
class is: 
The 2000 model year city fuel 
economy is: 
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 or 8,500 lbs ....................................................................
11.1 mpg. 
‘‘(B) In the case of a light truck: 
‘‘If 
vehicle 
inertia 
weight 
class is: 
The 2000 model year city 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 or 8,500 lbs ....................................................................
12.0 mpg. 
‘‘(4) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ has the meaning given such term by section 
30(c)(2). 
‘‘(5) CITY FUEL ECONOMY.—City fuel economy 
with respect to any vehicle shall be measured in ac-
cordance with testing and calculation procedures es-
tablished by the Administrator of the Environmental 
Protection Agency by regulations in effect on April 
11, 2005. 
‘‘(6) OTHER
TERMS.—The terms ‘passenger 
automobile’, ‘light truck’, and ‘manufacturer’ shall 
have the meanings given such terms in regulations
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prescribed by the Administrator of the Environ-
mental Protection Agency for purposes of the admin-
istration of title II of the Clean Air Act (42 U.S.C. 
7521 et seq.). 
‘‘(e) CARRYFORWARD ALLOWED.— 
‘‘(1) IN GENERAL.—If the credit amount allow-
able under subsection (a) for a taxable year exceeds 
the amount of the limitation under subsection (c) for 
such taxable year (referred to as the ‘unused credit 
year’ in this paragraph), such excess shall be allowed 
as a credit carryforward for each of the 20 taxable 
years following the unused credit year. 
‘‘(2) RULES.—Rules similar to the rules of sec-
tion 39 shall apply with respect to the credit 
carryforward under paragraph (1). 
‘‘(f) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) REDUCTION IN BASIS.—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) NO
DOUBLE
BENEFIT.—The amount of 
any deduction or credit allowable under this chapter 
(other than the credit allowable under subsection 
(a)), with respect to any vehicle shall be reduced by
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the amount of credit allowed under subsection (a) 
(determined without regard to subsection (c)) for 
such vehicle for the taxable year. 
‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTI-
TY.—In the case of a vehicle whose use is described 
in paragraph (3) or (4) of section 50(b) and which 
is not subject to a lease, the person who sold such 
vehicle to the person or entity using such vehicle 
shall be treated as the taxpayer that placed such ve-
hicle in service, but only if such person clearly dis-
closes to such person or entity in a document the 
amount of any credit allowable under subsection (a) 
with respect to such vehicle (determined without re-
gard to subsection (c)). 
‘‘(4) 
PROPERTY
USED
OUTSIDE
UNITED 
STATES, ETC., NOT QUALIFIED.—No credit shall be 
allowable 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. 
‘‘(5) ELECTION
NOT
TO
TAKE
CREDIT.—No 
credit shall be allowed under subsection (a) for any 
vehicle if the taxpayer elects not to have this section 
apply to such vehicle.
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‘‘(6) INTERACTION
WITH
AIR
QUALITY
AND 
MOTOR VEHICLE SAFETY STANDARDS.—Unless oth-
erwise provided in this section, a motor vehicle shall 
not be considered eligible for a credit under this sec-
tion unless such vehicle is in compliance with— 
‘‘(A) the applicable provisions of the Clean 
Air Act for the applicable make and model year 
of the vehicle (or applicable air quality provi-
sions of State law in the case of a State which 
has adopted such provision under a waiver 
under section 209(b) of the Clean Air Act), and 
‘‘(B) the motor vehicle safety provisions of 
sections 30101 through 30169 of title 49, 
United States Code. 
‘‘(g) REGULATIONS.— 
‘‘(1) IN GENERAL.—The Secretary shall pro-
mulgate such regulations as necessary to carry out 
this section, including regulations to prevent the 
avoidance of the purposes of this section through 
disposal of any motor vehicle or leasing of any motor 
vehicle for a lease period of less than the economic 
life of such vehicle. 
‘‘(2) DETERMINATION OF MOTOR VEHICLE ELI-
GIBILITY.—The Secretary, in coordination with the 
Secretary of Transportation and the Administrator
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of the Environmental Protection Agency, shall pre-
scribe such regulations as necessary to determine 
whether a motor vehicle meets the requirements to 
be eligible for a credit under this section. 
‘‘(h) TERMINATION.—This section shall not apply to 
any property placed in service after December 31, 2007.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1016(a), as amended by section 
1311 of this title, is amended by striking ‘‘and’’ at 
the end of paragraph (31), by striking the period at 
the end of paragraph (32) and inserting ‘‘, and’’, 
and by adding at the end the following: 
‘‘(33) to the extent provided in section 
30B(f)(1).’’. 
(2) Section 6501(m) is amended by inserting 
‘‘30B(f)(6),’’ after ‘‘30(d)(4),’’. 
(3) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 30A the fol-
lowing: 
‘‘Sec. 30B. Advanced lean burn technology motor vehicle credit.’’. 
(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 in taxable years end-
ing after such date.
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SEC. 1317. CREDIT FOR ENERGY EFFICIENCY IMPROVE-
MENTS TO EXISTING HOMES. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 (relating to nonrefundable personal 
credits), as amended by section 1311, is amended by in-
serting after section 25C the following new section: 
‘‘SEC. 25D. ENERGY EFFICIENCY IMPROVEMENTS TO EXIST-
ING HOMES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to 20 percent of the amount paid or incurred by 
the taxpayer for qualified energy efficiency improvements 
installed during such taxable year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) MAXIMUM CREDIT.—The credit allowed by 
this section with respect to a dwelling unit shall not 
exceed $2,000. 
‘‘(2) PRIOR CREDIT AMOUNTS FOR TAXPAYER 
ON SAME DWELLING TAKEN INTO ACCOUNT.—If a 
credit was allowed to the taxpayer under subsection 
(a) with respect to a dwelling unit in 1 or more prior 
taxable years, the amount of the credit otherwise al-
lowable for the taxable year with respect to that 
dwelling unit shall be reduced by the sum of the 
credits allowed under subsection (a) to the taxpayer