Congress

Sustainability-(v)

Independence-(v)

Mandates-(v)

Incentives-(v)

“Light-Duty Hybrid and Diesel Vehicle Tax Credits in the Energy Bill.” __American Council for an Energy-Efficient Economy.__ 20 June 2007. 
(Incentives, Independence) A significant provision of the Energy Policy Act of 2005 creates new tax credits for consumers who buy various advanced technology vehicles, including hybrid-electric and diesel-powered cars and light trucks. The provision differs from previous federal incentives for these vehicles in relying on tax credits rather than deductions, typically resulting in greater savings for consumers. Credits are available only for a limited number of vehicles per automaker. While the credits last through 2010, some automakers will exhaust their shares well before then. The provision is structured so vehicles can earn credits both for achieving greater fuel economy and for saving fuel. Fuel economy improvement is measured against a weight-dependent, model year 2002 baseline, with tiered credits starting at 25% over the baseline fuel economy. With each 25% improvement over the baseline fuel economy up to a maximum of 250%, the tax credit increases by $400.

Schumer, Charles. “New Fuel Efficient Tires Could Save Long Islanders $150 and Reduce U.S. Oil Dependency by 275,000 Barrels a Day.” Press Release from Senator Charles Schumer. August 2006. 14 June 2007. <[|www.senate.gov/~schumer/]>

(Independence, mandates, sustainability) Of over 100 tire retailers on Long Island, New York, only 12% of them were carrying high-efficiency tires in August 2006. Paying an extra $12 for a set of tires to save up to $150 at the gas pump would be very appealing to people. The federal government should require that replacement tires are as efficient as the originals.

United States. Dept. of Energy. “The Energy Policy Act of 2005: What the Energy Bill Means to You.” 20 June 2007.  The Energy Policy Act of 2005 (EPACT), signed by President Bush on August 8, 2005, offers consumers and businesses federal tax credits beginning in 2006 for purchasing fuel-efficient hybrid-electric vehicles and energy-efficient appliances and products. Most of these tax credits remain in effect through 2007. Buying and driving a fuel-efficient vehicle and purchasing and installing energy-efficient appliances and products provide many benefits such as better gas mileage, meaning lower gasoline costs, fewer emissions, lower energy bills, increased indoor comfort, and reduced air pollution.

United States. “Energy Policy Act of 2005 – Section 1341.” 8 August 2005. 18 June 2007. 

This section of the Energy Policy Act of 2005 provides a tax credit to buyers of new alternative fuel vehicles placed in service as an alternative fuel vehicle as of 2006. The legislation provides for a tax credit equal to 50% of the incremental cost of the vehicle, plus an additional 30% of the incremental cost for vehicles with near zero emissions. The credit is available on the purchase of light, medium, and heavy-duty vehicles and fuel-cell, hybrid, and dedicated natural gas, propane, and hydrogen vehicles. Light-duty lean burn diesel vehicles are also eligible.

United States. “Energy Policy Act of 2005 – Section 1342.” 8 August 2005. 18 June 2007. 

This provision of this legislation provides a tax credit equal to 30% of the of cost alternative refueling property, up to $30,000 for business property. Qualifying alternative fuels are natural gas, propane, hydrogen, E85, or biodiesel mixtures of B20 or more. Buyers of residential refueling equipment can receive a tax credit for $1,000. For non-tax paying entities, the credit can be passed back to the equipment seller. The credit is effective on equipment put into service after 2005 and expires 2009.

(Raquel Simental) The Senate Finance Committee is considering reducing the 51-cent-per-gallon for tax credit for ethanol by a nickel in order to pay for a new tax credit of 50 cents per gallon for the next generation of biofuels. The proposal is part of a package of energy tax incentives that the committee is scheduled to vote for on Tuesday.
 * Brasher, Philip. “U.S. subsidy for ethanol could shift.” //Des Moines Register// 16 June 2007: 1D.**