Internal Revenue Code:Sec. 30B. Alternative motor vehicle credit

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Contents

Location in Internal Revenue Code



         TITLE 26 - INTERNAL REVENUE CODE
          Subtitle A - Income Taxes
           CHAPTER 1 - NORMAL TAXES AND SURTAXES
            Subchapter A - Determination of Tax Liability
             PART IV - CREDIT AGAINST TAXES
              Subpart B - Other Costs


Statute


      SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.
       (a) Allowance of Credit- There shall be allowed 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 advanced lean burn technology motor vehicle credit
            determined under subsection (c),
          (3) the new qualified hybrid motor vehicle credit determined 
            under subsection (d), and
          (4) the new qualified alternative fuel motor vehicle credit
            determined under subsection (e).
       (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 a vehicle placed in service
            after December 31, 2009), 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 determined 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 percent of the 2002 model year city fuel economy,
           (ii) $1,500, if such vehicle achieves at least 175 percent but
              less than 200 percent of the 2002 model year city fuel economy,
          (iii) $2,000, if such vehicle achieves at least 200 percent but 
              less than 225 percent of the 2002 model year city fuel economy,
           (iv) $2,500, if such vehicle achieves at least 225 percent but 
              less than 250 percent of the 2002 model year city fuel economy,
            (v) $3,000, if such vehicle achieves at least 250 percent but less
              than 275 percent of the 2002 model year city fuel economy,
           (vi) $3,500, if such vehicle achieves at least 275 percent but 
              less than 300 percent of the 2002 model year city fuel economy, 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 ECONOMY- 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 automobile:
                                                       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 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 VEHICLE- 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 1 or more cells 
            which convert chemical energy directly into electricity by 
            combining oxygen 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, 
            has received on or after the date of the enactment of this section
            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,
          (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 Advanced Lean Burn Technology Motor Vehicle Credit-
        (1) IN GENERAL- For purposes of subsection (a), the new advanced
          lean burn technology motor vehicle credit determined under this 
          subsection for the taxable year is the credit amount determined 
          under paragraph (2) with respect to a new advanced lean burn technology
          motor vehicle placed in service by the taxpayer during the taxable year.
        (2) CREDIT AMOUNT-
          (A) FUEL ECONOMY-
            (i) IN GENERAL- The credit amount determined under this paragraph
             shall be determined in accordance with the following table:
           In the case of a vehicle which achieves
           a fuel economy (expressed as a percentage
           of the 2002 model year city fuel economy) of--    The credit amount is--
           At least 125 percent but less than 150 percent             $400 
           At least 150 percent but less than 175 percent             $800 
           At least 175 percent but less than 200 percent           $1,200 
           At least 200 percent but less than 225 percent           $1,600 
           At least 225 percent but less than 250 percent           $2,000 
           At least 250 percent                                     $2,400. 
    
           (ii) 2002 MODEL YEAR CITY FUEL ECONOMY- For purposes of clause (i), the
             2002 model year city fuel economy with respect to a vehicle shall be 
             determined on a gasoline gallon equivalent basis as determined by 
             the Administrator of the Environmental Protection Agency using the
             tables provided in subsection (b)(2)(B) with respect to such vehicle.
          (B) CONSERVATION CREDIT- The amount determined under subparagraph (A)
             with respect to a new advanced lean burn technology motor vehicle 
             shall be increased by the conservation credit amount determined in
             accordance with the following table:
           In the case of a vehicle which achieves a 
           lifetime fuel savings (expressed in gallons      The conservation credit 
           of gasoline) of--                                   amount is--
           At least 1,200 but less than 1,800                         $250 
           At least 1,800 but less than 2,400                         $500 
           At least 2,400 but less than 3,000                         $750 
           At least 3,000                                           $1,000. 
      (3) NEW ADVANCED LEAN BURN TECHNOLOGY MOTOR VEHICLE- For purposes of this 
          subsection, the term `new advanced lean burn technology motor vehicle'
          means a passenger automobile or a light truck--
          (A) with an internal combustion engine which--
            (i) is designed to operate primarily using more air than is 
              necessary for complete combustion of the fuel,
           (ii) incorporates direct injection,
          (iii) achieves at least 125 percent of the 2002 model year 
              city fuel economy,
           (iv) for 2004 and later model vehicles, has received a certificate
              that such vehicle meets or exceeds--
             (I) in the case of a vehicle having a gross vehicle weight
               rating of 6,000 pounds or less, the Bin 5 Tier II emission 
               standard 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, and
            (II) in the case of a vehicle having 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 established,
          (B) the original use of which commences with the taxpayer,
          (C) which is acquired for use or lease by the taxpayer and not for
              resale, and
          (D) which is made by a manufacturer.
       (4) LIFETIME FUEL SAVINGS- For purposes of this subsection, the term 
          `lifetime fuel savings' means, in the case of any new advanced lean
           burn technology motor vehicle, an amount equal to the excess (if any)
           of--
          (A) 120,000 divided by the 2002 model year city fuel economy for
           the vehicle inertia weight class, over
          (B) 120,000 divided by the city fuel economy for such vehicle.
     (d) New Qualified Hybrid Motor Vehicle Credit-
       (1) IN GENERAL- For purposes of subsection (a), the new qualified
         hybrid motor vehicle credit determined under this subsection for
         the taxable year is the credit amount determined under paragraph (2)
         with respect to a new qualified hybrid motor vehicle placed in service
         by the taxpayer during the taxable year.
       (2) CREDIT AMOUNT-
         (A) CREDIT AMOUNT FOR PASSENGER AUTOMOBILES AND LIGHT TRUCKS- In 
           the case of a new qualified hybrid motor vehicle which is a passenger
           automobile or light truck and which has a gross vehicle weight rating
           of not more than 8,500 pounds, the amount determined under this
           paragraph is the sum of the amounts determined under clauses (i) 
           and (ii).
           (i) FUEL ECONOMY- The amount determined under this clause is the 
             amount which would be determined under subsection (c)(2)(A) 
             if such vehicle were a vehicle referred to in such subsection.
          (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 percentage of the qualified incremental hybrid cost 
              of the vehicle as certified under clause (v).
             (ii) APPLICABLE PERCENTAGE- For purposes of clause (i), the
               applicable percentage is--
                (I) 20 percent if the vehicle achieves an increase in city
                  fuel economy 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 HYBRID COST- For purposes of this 
                subparagraph, the qualified incremental hybrid cost of any 
                vehicle is equal to the amount of the excess of the manufacturer's
                suggested 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 engine 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 procedures and methods for calculating fuel economy savings
                and incremental hybrid costs.
         (3) NEW QUALIFIED HYBRID MOTOR VEHICLE- For purposes of this subsection--
             (A) IN GENERAL- The term `new qualified hybrid motor vehicle' means
                a motor vehicle--
               (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 storage system,
              (ii) which, in the case of a vehicle to which paragraph (2)(A) 
                 applies, has received a certificate of conformity under the 
                 Clean Air Act and meets or exceeds 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
                 (I) in the case of a vehicle having a gross vehicle weight 
                   rating of 6,000 pounds or less, the Bin 5 Tier II emission 
                   standard 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, and
                (II) in the case of a vehicle having 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 established,
             (iii) which has a maximum available power of at least--
                 (I) 4 percent in the case of a vehicle to which paragraph
                    (2)(A) applies,
                (II) 10 percent in the case of a vehicle which has a gross 
                    vehicle weight rating of more than 8,500 pounds and not more
                    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 internal 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 Environmental Protection
                   Agency for 2004 through 2007 model year diesel heavy duty 
                   engines or ottocycle heavy duty engines, as applicable,
               (v) the original use of which commences with the taxpayer,
              (vi) which is acquired for use or lease by the taxpayer and 
                  not for resale, and
             (vii) which is made by a manufacturer.
          Such term shall not include any vehicle which is not a passenger
          automobile or light truck if such vehicle has a gross vehicle weight 
          rating of less than 8,500 pounds.
            (B) CONSUMABLE FUEL- For purposes of subparagraph (A)(i)(I), 
              the term `consumable fuel' means any solid, liquid, or gaseous 
              matter which releases energy when consumed by an auxiliary
              power unit.
            (C) MAXIMUM AVAILABLE POWER-
               (i) CERTAIN PASSENGER AUTOMOBILES AND LIGHT TRUCKS- In the 
                 case of a vehicle to which paragraph (2)(A) applies, the term
                `maximum available power' means the maximum power available from
                 the rechargeable 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.
               (ii) OTHER MOTOR VEHICLES- In the case of a vehicle to which 
                 paragraph (2)(B) applies, the term `maximum available power' 
                 means the maximum power available from the rechargeable energy
                 storage system, during a standard 10 second pulse power or 
                 equivalent test, divided by the vehicle's total traction power.    
                 For purposes of the preceding sentence, the term `total traction
                 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.
        (e) New Qualified Alternative Fuel Motor Vehicle Credit-
            (1) ALLOWANCE OF CREDIT- Except as provided in paragraph (5),
                the new qualified alternative fuel motor vehicle credit determined 
                under this subsection is an amount equal to the applicable 
                percentage of the incremental cost of any new qualified 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 respect to any new qualified alternative
                fuel motor vehicle is--
              (A) 50 percent, plus	
              (B) 30 percent, if such vehicle--
                (i) has received a certificate of conformity under the Clean Air
                   Act and meets or exceeds the most stringent standard available
                   for certification under the Clean Air Act for that make and 
                   model year vehicle (other than a zero emission standard), or
                (ii) has received an order certifying the vehicle as meeting 
                   the same requirements 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 California
                  (enacted in accordance with a waiver granted under section 209(b)
                   of the Clean Air Act) for that make and model year vehicle 
                  (other than a zero emission standard).
          For purposes of the preceding sentence, in the case of any new qualified
          alternative fuel motor vehicle which weighs more than 14,000 pounds
          gross vehicle weight rating, the most stringent standard available shall
          be such standard available for certification on the date of the enactment
          of the Energy Tax Incentives Act of 2005.
            (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 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) $25,000, 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.
           (4) NEW QUALIFIED ALTERNATIVE FUEL MOTOR VEHICLE- For purposes of
                this subsection--
              (A) IN GENERAL- The term `new qualified alternative fuel motor
                vehicle' means any motor vehicle--
                 (i) which is only capable of operating on an alternative fuel,
                (ii) the original use of which commences with the taxpayer,
               (iii) which is acquired by the taxpayer for use or lease, but 
                  not for resale, and
                (iv) which is made by a manufacturer.
              (B) ALTERNATIVE FUEL- The term `alternative fuel' means 
                 compressed natural gas, liquefied natural gas, liquefied 
                 petroleum gas, hydrogen, and any liquid at least 85 percent
                 of the volume of which consists of methanol.
           (5) CREDIT FOR MIXED-FUEL VEHICLES-
              (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 
                  subparagraph (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 
                  alternative fuel and a petroleum-based fuel,
               (ii) either--
                 (I) has received a certificate of conformity under the Clean
                    Air Act, or
                (II) has received an order certifying 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 commences with the taxpayer,
               (iv) which is acquired by the taxpayer 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 alternative fuel 
                and not more than 25 percent petroleum-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 alternative fuel and
                not more than 10 percent petroleum-based fuel.
        (f) Limitation on Number of New Qualified Hybrid and Advanced Lean-Burn
              Technology Vehicles Eligible for Credit-
            (1) IN GENERAL- In the case of a qualified vehicle sold during the
                phaseout period, only the applicable percentage of the credit 
                otherwise allowable under subsection (c) or (d) shall be allowed.
            (2) PHASEOUT PERIOD- For purposes of this subsection, the phaseout
                period is the period beginning with the second calendar quarter
                following the calendar quarter which includes the first date on
                which the number of qualified vehicles manufactured by the 
                manufacturer of the vehicle referred to in paragraph (1) sold 
                for use in the United States after December 31, 2005, is at
                least 60,000.
            (3) APPLICABLE PERCENTAGE- For purposes of paragraph (1), the applicable percentage is--
               (A) 50 percent for the first 2 calendar quarters of the 
                 phaseout period,
               (B) 25 percent for the 3d and 4th calendar quarters of the 
                phaseout period, and
               (C) 0 percent for each calendar quarter thereafter.
            (4) CONTROLLED GROUPS-
               (A) IN GENERAL- For purposes of this subsection, all persons 
                  treated as a single employer under subsection (a) or (b)
                 of section 52 or subsection (m) or (o) of section 414 shall 
                 be treated as a single manufacturer.
               (B) INCLUSION OF FOREIGN CORPORATIONS- For purposes of 
                 subparagraph (A), in applying subsections (a) and (b) 
                 of section 52 to this section, section 1563 shall be applied
                 without regard to subsection (b)(2)(C) thereof.
            (5) QUALIFIED VEHICLE- For purposes of this subsection, 
                 the term `qualified vehicle' means any new qualified hybrid
                 motor vehicle (described in subsection (d)(2)(A)) and any new 
                 advanced lean burn technology motor vehicle.
        (g) Application With Other Credits-
            (1) BUSINESS CREDIT TREATED AS PART OF GENERAL BUSINESS CREDIT- So 
               much of the credit which would be allowed under subsection (a) 
               for any taxable year (determined without regard to this subsection) 
               that is attributable to property of a character subject to an 
               allowance for depreciation shall be treated as a credit listed in
               section 38(b) for such taxable year (and not allowed under 
               subsection (a)).
            (2) PERSONAL CREDIT- The credit allowed under subsection (a) 
              (after the application of paragraph (1)) for any taxable year
              shall not exceed the excess (if any) of--
              (A) the regular tax liability (as defined in section 26(b))
                  reduced by the sum of the credits allowable
                  under subpart A and sections 27 and 30, over
              (B) the tentative minimum tax for the taxable year.
        (h) Other Definitions and Special Rules- For purposes of this section--
             (1) MOTOR VEHICLE- The term `motor vehicle' has the meaning 
                 given such term by section 30(c)(2).
             (2) CITY FUEL ECONOMY- The city fuel economy with respect to 
                 any vehicle shall be measured in a manner which is substantially
                 similar to the manner city fuel economy is measured in accordance
                 with procedures under part 600 of subchapter Q of chapter I of
                 title 40, Code of Federal Regulations, as in effect on the date
                 of the enactment of this section.
             (3) OTHER TERMS- The terms `automobile', `passenger automobile', 
                `medium duty passenger vehicle', `light truck', and `manufacturer'
                 have the meanings given such terms 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.).
            (4) REDUCTION IN BASIS- For purposes of this subtitle, the basis of 
                any property for which a credit is allowable under subsection (a)
                shall be reduced by the amount of such credit so allowed (determined 
                without regard to subsection (g)).
            (5) NO DOUBLE BENEFIT- The amount of any deduction or other credit 
                allowable under this chapter--
                (A) for any incremental cost taken into account in computing
                the amount of the credit determined under subsection (e) shall 
                be reduced by the amount of such credit attributable to such cost, and
                (B) with respect to a vehicle described under subsection (b) 
                or (c), shall be reduced by the amount of credit allowed under 
                subsection (a) for such vehicle for the taxable year.
            (6) PROPERTY USED BY TAX-EXEMPT ENTITY- 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 vehicle in service, but 
                only if such person clearly discloses to such person or entity 
                in a document the amount of any credit allowable under subsection 
               (a) with respect to such vehicle (determined without regard to 
                subsection (g)). For purposes of subsection (g), property to which 
                this paragraph applies shall be treated as of a character subject 
                to an allowance for depreciation.
            (7) 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 respect to 
               the portion of the cost of any property taken into account under
               section 179.
            (8) RECAPTURE- The Secretary shall, by regulations, provide for 
               recapturing the benefit of any credit allowable under subsection 
              (a) with respect to any property which ceases to be property eligible
              for such credit (including recapture in the case of a lease period of
              less than the economic life of a vehicle).
            (9) 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.
           (10) INTERACTION WITH AIR QUALITY AND MOTOR VEHICLE SAFETY STANDARDS- 
               Unless otherwise provided in this section, a motor vehicle shall 
               not be considered eligible for a credit under this section 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 provisions 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.
        (i) Regulations-
            (1) IN GENERAL- Except as provided in paragraph (2), the Secretary 
              shall promulgate such regulations as necessary to carry out the 
              provisions of this section.
            (2) COORDINATION IN PRESCRIPTION OF CERTAIN REGULATIONS- The Secretary
             of the Treasury, in coordination with the Secretary of Transportation
             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.
        (j) 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)), December 31, 2014,
             (2) in the case of a new advanced lean burn technology motor vehicle
              (as described in subsection (c)) or a new qualified hybrid motor       
               vehicle (as described in subsection (d)(2)(A)), December 31, 2010,
             (3) in the case of a new qualified hybrid motor vehicle (as described 
               in subsection (d)(2)(B)), December 31, 2009, and
             (4) in the case of a new qualified alternative fuel vehicle (as described 
               in subsection (e)), December 31, 2010.'.



Sources


         2005 - Energy Policy Act of 2005, Sec. 1342, established this new IRC 
         Sec. 30B.  The amendments made by this section shall apply to property
         placed in service after December 31, 2005, in taxable years ending after
         such date.

Amendments

2005 - P.L. 109-135

 (j) Amendment Related to Section 1341.--Paragraph (6) of section 
30B(h) is <<NOTE: 26 USC 30B.>> amended by adding at the end the 
following sentence: ``For purposes of subsection (g), property to which 
this paragraph applies shall be treated as of a character subject to an 
allowance for depreciation.''.
         
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