SECTION 2. BACKGROUND.

Section 30B(a)(3) provides for a credit determined under § 30B(d) for certain new qualified hybrid motor vehicles. The new qualified hybrid motor vehicle credit for a heavy-duty hybrid motor vehicle is determined under § 30B(d)(2)(B) and is an amount equal to the applicable percentage of the qualified incremental hybrid cost of the vehicle. The qualified incremental hybrid cost is the excess of the manufacturer’s suggested retail price for the qualified vehicle over the manufacturer’s suggested retail price for a comparable vehicle. However, the qualified incremental

hybrid cost of a vehicle is limited depending upon the gross vehicle weight rating of the vehicle. The applicable percentage varies depending upon the increase in the city fuel economy of the qualified vehicle relative to a comparable vehicle.