SECTION 2. BACKGROUND

Section 30B(a)(2) provides for a credit determined under § 30B(c) for certain new advanced lean burn technology motor vehicles. Section 30B(a)(3) provides for a credit determined under § 30B(d) for certain new qualified hybrid motor vehicles. The new advanced lean burn technology

motor vehicle credit is the sum of: (1) a fuel economy amount that varies with the rated fuel economy of a qualifying vehicle compared to the 2002 model year city fuel economy for a vehicle in its weight class; and (2) a conservation credit based on the estimated lifetime fuel savings of the vehicle compared to fuel used by a vehicle in its weight class and with fuel economy equal to the 2002 model year city fuel economy. The new qualified hybrid motor vehicle credit for passenger automobiles and light trucks is computed under the same formula as the new advanced lean burn technology motor vehicle credit. Both the new advanced lean burn technology motor vehicle credit and the new qualified hybrid motor vehicle credit begin to phase out for a manufacturer’s passenger automobiles and light trucks in the second calendar quarter after the calendar quarter in which at least 60,000 of the manufacturer’s passenger automobiles and light trucks that qualify for either credit have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2005).