Legislation Would Provide Tax Credits for Environmentally Friendly Vehicles
WASHINGTON, DC – Senator Gordon Smith (R-OR) today announced that he has joined Senator Orrin Hatch (R-UT) to introduce legislation which would increase conservation and improve air quality by promoting the production and use of alternative fuel and low-emission vehicles.
"Motor vehicles account for nearly two-thirds of all oil consumption. Any comprehensive energy policy should aggressively encourage conservation of this limited resource," Smith said. "This legislation will provide consumers with strong financial incentives to buy alternative fuel vehicles and will keep the air clean while preserving our natural resources."
The Clean Efficient Automobiles Resulting From Advanced Car Technologies (CLEAR) Act would provide significant tax credits directly to consumers who purchase motor vehicles employing the latest in environmentally friendly fuels. In order to promote continued improvements in technology, a base tax credit is provided along with additional credits depending on fuel economy performance. For instance, a consumer purchasing a fuel cell vehicle would receive a $4,000 base credit which could increase up to $8,000 depending on fuel economy. Vehicles covered by the CLEAR Act include those powered by hybrid engines, dedicated alternative fuels, fuel cells, and electric batteries.
"Alternative fuel technology is advancing quickly but is still facing the same roadblocks that keep other scientific advances from becoming part of daily life," Smith said. "Market-based incentives for consumers and for infrastructure improvements included in the CLEAR Act will help pave the way to making low-emission cars and trucks as common as gasoline-powered vehicles are now."
In addition to automobile credits, the bill provides significant incentives to alternative fuel use in medium and heavy duty vehicles with credits ranging from $24,000 to $40,000 depending on weight and fuel type. Finally, the CLEAR Act promotes improvements in the alternative fuel infrastructure by allowing tax credits for the expansion of distribution points and fuel sites.
The bipartisan CLEAR Act enjoys the support of a broad and diverse coalition including the Natural Resources Defense Council, the Natural Gas Vehicle Association, the Ford, Toyota, and Honda companies, the Union of Concerned Scientists, and the Electric Vehicle Association of the Americas.
