‘‘(9) 
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) or with respect 
to the portion of the cost of any property taken into 
account under section 179. 
‘‘(10) ELECTION TO NOT 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. 
‘‘(11) CARRYBACK
AND
CARRYFORWARD
AL-
LOWED.—
‘‘(A) IN GENERAL.—If the credit amount 
allowable under subsection (a) for a taxable 
year exceeds the amount of the limitation under 
subsection (e) for such taxable year (in this 
paragraph referred to as the ‘unused credit 
year’), such excess shall be allowed as a credit 
carryback for each of the 3 taxable years begin-
ning after the date of the enactment of this sec-
tion, which precede the unused credit year and 
a credit carryforward for each of the 20 taxable 
years which succeed the unused credit year. 
‘‘(B) RULES.—Rules similar to the rules of 
section 39 shall apply with respect to the credit
carryback and credit carryforward under sub-
paragraph (A). 
‘‘(12) 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.—Except as provided in para-
graph (2), the Secretary shall promulgate such regu-
lations as necessary to carry out the provisions of 
this section. 
‘‘(2) COORDINATION IN PRESCRIPTION OF CER-
TAIN REGULATIONS.—The Secretary of the Treas-
ury, in coordination with the Secretary of Transpor-
tation and the Administrator of the Environmental
Protection Agency, shall prescribe 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 purchased after—
‘‘(1) in the case of a new qualified fuel cell 
motor vehicle (as described in subsection (b)), De-
cember 31, 2013, and 
‘‘(2) in the case of any other property, Decem-
ber 31, 2009.’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 1016(a) is amended by striking 
‘‘and’’ at the end of paragraph (27), by striking the 
period at the end of paragraph (28) and inserting
‘‘, and’’, and by adding at the end the following new 
paragraph: 
‘‘(29) to the extent provided in section 
30B(f)(5).’’. 
(2) Section 55(c)(2) is amended by inserting 
‘‘30B(e),’’ after ‘‘30(b)(3)’’. 
(3) Section 6501(m) is amended by inserting 
‘‘30B(f)(10),’’ after ‘‘30(d)(4),’’. 
(4) 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 new item:
‘‘Sec. 30B. Alternative 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 
ending after such date. 
SEC. 4. MODIFICATION OF CREDIT FOR QUALIFIED ELEC-
TRIC VEHICLES. 
(a) AMOUNT OF CREDIT.—
(1) IN GENERAL.—Section 30(a) (relating to al-
lowance of credit) is amended by striking ‘‘10 per-
cent of’’. 
(2) LIMITATION
OF
CREDIT
ACCORDING
TO 
TYPE OF VEHICLE.—Section 30(b) (relating to limi-
tations) is amended—
(A) by striking paragraphs (1) and (2) and 
inserting the following new paragraph: 
‘‘(1) LIMITATION ACCORDING TO TYPE OF VE-
HICLE.—The amount of the credit allowed under 
subsection (a) for any vehicle shall not exceed the 
greatest of the following amounts applicable to such 
vehicle: 
‘‘(A) In the case of a vehicle which con-
forms to the Motor Vehicle Safety Standard 
500 prescribed by the Secretary of Transpor-
tation, as in effect on the date of the enactment 
of the Clean Efficient Automobiles Resulting 
From Advanced Car Technologies (CLEAR 
ACT) Act of 2003, the lesser of—
‘‘(i) 10 percent of the manufacturer’s 
suggested retail price of the vehicle, or 
‘‘(ii) $1,500. 
‘‘(B) In the case of a vehicle not described 
in subparagraph (A) with a gross vehicle weight 
rating not exceeding 8,500 pounds—
‘‘(i) $4,000, or 
‘‘(ii) $6,000, if such vehicle is—
‘‘(I) capable of a driving range of 
at least 100 miles on a single charge 
of the vehicle’s rechargeable batteries 
as measured pursuant to the urban 
dynamometer schedules under appen-
dix I to part 86 of title 40, Code of 
Federal Regulations, or 
‘‘(II) capable of a payload capac-
ity of at least 1,000 pounds. 
‘‘(C) In the case of a vehicle with a gross 
vehicle weight rating exceeding 8,500 but not 
exceeding 14,000 pounds, $10,000.