123STA T . 32 7PUBLIC LA W 111 –5—FE B. 17 , 2 0 0 9‘ ‘ (A)theorig i nalus eo fw hi c hco m mences with the ta xp a y er , ‘‘( B ) which is ac q uire d for use or lease b y the taxpayer and not for resale, ‘‘( C ) which is made by a manufacturer, ‘‘( D ) which is treated as a motor v ehicle for purposes of title I I of the Clean Air Act, ‘‘( E ) which has a gross vehicle weight rating of less than 14 , 0 00 pounds, and ‘‘( F ) which is propelled to a significant extent by an electric motor which draws electricity from a battery which — ‘‘(i) has a capacity of not less than 4 k ilowatt hours, and ‘‘(ii) is capable of being recharged from an external source of electricity . ‘‘( 2 ) MOT O RVEHICL E.— T he term ‘motor vehicle ’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. ‘‘( 3 )M ANUF ACTURER.—The term ‘manufacturer’ has the meaning given such term in regulations prescribed by the Administrator of the Environmental P rotection Agency for pur - poses of the administration of title II of the Clean Air Act (42 U . S .C. 75 21 et seq.). ‘‘(4) BATTER Y CA P ACITY.—The term ‘capacity’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge. ‘‘(e) L I M ITATION ON N UM B EROFNE WQ UALIFIE D PLU G -IN ELEC- TRIC DRIVE MOTOR V EHICLE S ELIGIBLE FOR CREDIT.— ‘‘(1) IN GENERAL.—In the case of a new qualified plug- in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) 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 new qualified plug- in electric drive motor vehicles manufactured by the manufac- turer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 200 9 , is at least 200,000. ‘‘(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.— R ules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection. ‘‘(f) SPECIAL RULES.— ‘‘(1) BASIS REDUCTION.—For purposes of this subtitle, the basis of any property for which a credit is allowable under Regulations.Ap pli c a b ilit y .
