To amend the Internal Revenue Code of 1986 to provide tax incentives for the production of qualified hybrid motor vehicles.

Amends the Internal Revenue Code to allow tax credits for purchasers and manufacturers of qualified hybrid motor vehicles. Defines "qualified hybrid motor vehicle" as a motor vehicle which: (1) operates on an internal combustion or heat engine using consumable fuel and a rechargeable energy storage system; (2) meets specified emission standards under the Clean Air Act; (3) is a passenger vehicle or light truck with a gross weight rating of not more than 8,500 pounds; (4) has a maximum available power (defined as 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) of at least four percent; and (5) is acquired for use or lease by a taxpayer and not for resale.