2006 New Energy Bill

Discussion in 'Gen 2 Prius Main Forum' started by twq83, Oct 25, 2005.

  1. twq83

    twq83 New Member

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    I was here a couple of days ago and saw a Link to the New Energy Bill with the pages that the Hybrid Tax Break began and such...........

    Would you please post that again.............

    Thanks,

    Tom Quinn
    Internet Sales
     
  2. Kiloran

    Kiloran New Member

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  3. MBranstein

    MBranstein New Member

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    Prospect, KY
    Vehicle:
    2006 Prius
  4. geologyrox

    geologyrox New Member

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    another excel addict! yay!
     
  5. MBranstein

    MBranstein New Member

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    Not exactly, but there's a lot of very cool things that can be done with Excel. You should check out a book entitled "Professional Excel Development" by Stephen Bullen, Rob Bovey, and John Green (ISBN: 0-321-26250-6).

    These guys are Excel addicts! Scary!
     
  6. geologyrox

    geologyrox New Member

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    i got stuck taking a really boring software class in college, but the last few weeks were spent on using excel as a database. i loved it! all those ifs made me feel like i was using basic again =P

    we use excel for all our online order forms, and i use it for everything. normal people have post it notes to jot down information. geeks keep notepad open. i have excel =)


    EDIT: thanks for the book rec - will have to pick it up.
     
  7. Kiloran

    Kiloran New Member

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    B) You're welcome.
    I've got a 2006 order in place but when I was looking to buy a 2005, I made an Excel spreadsheet on which I could turn on and off different packages and options and instantly see dealer cost, msrp, and dealer profit.
    I had my laptop open when talking with the salesdroid. ;)
     
  8. MBranstein

    MBranstein New Member

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    Aren't the salesdroids the worst!?!? It's so strange that thye know so little, but are our only life-line to the Prius.
     
  9. Tomel

    Tomel New Member

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    Could someone post an excerpt of the appropriate section of the Energy Bill. For those of us that still use dialup, downloading the entire Bill takes awhile.

    Thanks.
     
  10. Kiloran

    Kiloran New Member

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    :( Sorry, the PDF is set to not allow copying selected text.
     
  11. sailatinu

    sailatinu New Member

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    That sounds so cool! I do that kind of thing with my debt and such, though I lack some of the details for the Prius (05 or 06) in pricing, dealer, etc.

    Think you could share that at all? :)
     
  12. Kiloran

    Kiloran New Member

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    I got most of the 2005 pricing info at
    http://www.edmunds.com/new/2005/toyota/pri...ion=1&x=84&y=13

    I ordered my 2006 for January delivery back in August.
    (Pre gasoline price spike so I locked in a good deal. :D )

    I'm pretty sure I can find the file and could clean it up enough to post it here.
    I doubt it will really help folks though under the current market conditions.
    Gas prices are high, Prii are popular, and dealer stock is low.
    Most folks won't be able to get a better deal than MSRP on a 2005 regardless of how much pricing information they have.

    I had been planning on updating the spreadsheet and posting it when the 2006 prices became available.
    Guess I'll try and do both.
    B)
     
  13. Kiloran

    Kiloran New Member

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    Found the file.

    <_< It will want some changes prior to my posting it.

    I had squeezed the format so it would print on a single page.
    I left out pricing for non-package options that I had no interest in so I'll need to add those.
    Also, some cells have abbreviations which ought to be expanded for people who are not me.
    A short set of instructions for its use would be helpful too, I'd bet.
    State tax is hardcoded into some formulas (PA 6%). That'd need to be moved to its own cell.
    I assumed a 28% tax bracket for purposes of comparing 2005 tax benefit vs. 2006 tax credit. This should also be moved to a new cell.

    After selection of package and options, two tables are updated (and totals), one table shows sales prices based on dealer profit %, the other shows dealer profit % based on sale price.

    There's also a state incentive cell (PA for me) and a dealer discount cell,
    i.e. dealer says he'll sell the car for $X under MSRP.

    I'll see if I can find some spare moments today to clean this spreadsheet up.
    Hopefully, I may get it into good enough shape by tomorrow.
     
  14. jpbrody

    jpbrody New Member

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    The original poster gave a link to the House conference report. This ended up being Public Law No: 109-58, not sure if there were significant changes since the house report.

    The complete law is at
    txt version: http://thomas.loc.gov/cgi-bin/toGPO/http:/...d=f:publ058.109
    or
    pdf version:
    http://thomas.loc.gov/cgi-bin/toGPO/http:/...publ058.109.pdf

    Here is the relevant section:


    Subtitle D--Alternative Motor Vehicles and Fuels Incentives

    SEC. 1341. ALTERNATIVE MOTOR VEHICLE CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1
    (relating to foreign tax credit, etc.) is amended by adding at the end
    the following new section:

    ``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--

    [[Page 119 STAT. 1039]]

    ``(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 ©,
    ``(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,
    ``© $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:


    [[Page 119 STAT. 1040]]


    The 2002 model year city..................
    ``If vehicle inertiafuel economy is:..........................
    class 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 inertiafuel economy is:..........................
    class 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.

    ``© 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,
    ``© the original use of which commences with the
    taxpayer,

    [[Page 119 STAT. 1041]]

    ``(D) which is acquired for use or lease by the
    taxpayer and not for resale, and
    ``(E) which is made by a manufacturer.

    ``© 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 whiThe credit amount is--....................
    achieves a fuel economy (expressed
    as a percentage of the 2002 model
    year city fuel economy) of--
    At least 125 percent but less than 150 $400
    percent
    At least 150 percent but less than 175 $800
    percent
    At least 175 percent but less than 200 $1,200
    percent
    At least 200 percent but less than 225 $1,600
    percent
    At least 225 percent but less than 250 $2,000
    percent
    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 whiThe conservation credit amount is--.......
    achieves a lifetime fuel savings
    (expressed in gallons of gasoline)
    of--
    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,

    [[Page 119 STAT. 1042]]

    ``(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,
    ``© 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 ©(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 ©(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).

    [[Page 119 STAT. 1043]]

    ``(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

    [[Page 119 STAT. 1044]]

    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 <<NOTE: Applicability.>> 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) <<NOTE: Applicability.>> 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.
    ``© Maximum <<NOTE: Applicability.>> 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

    [[Page 119 STAT. 1045]]

    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,
    ``© $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,

    [[Page 119 STAT. 1046]]

    ``(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 © 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.
    ``© 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.

    [[Page 119 STAT. 1047]]

    ``(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 © 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
    ``© 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 <<NOTE: Applicability.>> 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)© 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 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©(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

    [[Page 119 STAT. 1048]]

    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 ©, 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)).
    ``(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 <<NOTE: Regulations.>> 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.--

    [[Page 119 STAT. 1049]]

    ``(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 ©) 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.''.

    (b) Conforming Amendments.--
    (1) Section 38(b), as amended by this Act, is amended by
    striking ``plus'' at the end of paragraph (23), by striking the
    period at the end of paragraph (24) and inserting ``, and'', and
    by adding at the end the following new paragraph:
    ``(25) the portion of the alternative motor vehicle credit
    to which section 30B(g)(1) applies.''.
    (2) Section 1016(a), as amended by this Act, is amended by
    striking ``and'' at the end of paragraph (34), by striking the
    period at the end of paragraph (35) and inserting ``, and'', and
    by adding at the end the following new paragraph:
    ``(36) to the extent provided in section 30B(h)(4).''.
    (3) Section 55©(2), as amended by this Act, is amended by
    inserting ``30B(g)(2),'' after ``30(b)(2),''.
    (4) Section 6501(m) is amended by inserting ``30B(h)(9),''
    after ``30(d)(4),''.
    (5) The table of sections for subpart B of part IV of
    subchapter A of chapter 1 is amended by inserting after the item
    relating to section 30A the following new item:

    ``Sec. 30B. Alternative motor vehicle credit.''.

    © Effective Date.--The <<NOTE: 26 USC 30B note.>> amendments made
    by this section shall apply to property placed in service after December
    31, 2005, in taxable years ending after such date.
     
  15. jimofdg

    jimofdg New Member

    Joined:
    Jul 10, 2004
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    Location:
    DG, IL, US
    It's hard to argue with THAT. Thanks for posting it.
     
  16. Tomel

    Tomel New Member

    Joined:
    Sep 24, 2005
    42
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    Location:
    Richmond, VA
    jpbrody . . .

    Thanks. That was a lot quicker for me than download the entire pdf.
     
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