Legislation Would Increase Tax Credits on Hybrids

[Kiloran]

Legislation Would Increase Tax Credits on Hybrid Vehicles
by $3000!

AIADA  summary 
U.S. Rep. Rahm Emanuel (D-Ill.) said he will introduce the American Hybrid Tax Credit Act of 2005, which would increase tax credits for consumers and small businesses that purchase hybrid and other alternative-fuel motor vehicles assembled in the United States.
Making hybrids more available to small businesses is good energy policy, good environmental policy and good economic policy, he said.


Body of Article
By Anonymous
U.S. Rep. Rahm Emanuel (D-Ill.) said he will introduce the American Hybrid Tax Credit Act of 2005, which would increase tax credits for consumers and small businesses that purchase hybrid and other alternative-fuel motor vehicles assembled in the United States.

Making hybrids more available to small businesses is good energy policy, good environmental policy and good economic policy, he said.

The current U.S. energy policy provides a tax credit ranging from $1,700 to $3,400 for buyers of hybrids, depending on the model purchased, beginning on January 1, 2006. Emanuel's legislation increases the credit for individuals and small businesses purchasing hybrid and other alternative-fuel motor vehicles assembled in the United States by $3,000. His legislation also increases the credit available to manufacturers for using new advanced lean burn technology by $3,000 and raises the credit for domestic research and development related to alternative motor vehicle technology from 20 percent to 40 percent. Emanuel also called for the federal government and recipients of federal funding to use hybrid technology in transportation fleets by 2015.

[QED]

The first step in bailing out the US car makers? <_<

[Kiloran]

Originally posted by QED@Jan 30 2006, 05:00 PM
The first step in bailing out the US car makers? <_<

[snapback]200722[/snapback]

Clearly a subsidy so I doubt it would meet our "free trade" obligations.

[LaughingMan]

Originally posted by QED@Jan 30 2006, 05:00 PM
The first step in bailing out the US car makers? <_<

[snapback]200722[/snapback]

Well if they're going to do it, it's nice that they're going to prod them by giving them incentives for clean technologies instead of the same old gas guzzlers...

Anything is better than a handout.

[QED]

Originally posted by LaughingMan@Jan 30 2006, 11:19 AM
Well if they're going to do it, it's nice that they're going to prod them by giving them incentives for clean technologies instead of the same old gas guzzlers...

Anything is better than a handout.

[snapback]200739[/snapback]

Yea, I guess so. I have difficulty with the idea of bailouts and subsidies, though I know some may actually benefit the overall economy.

I really want Ford and GM to succeed. They just need to somehow get their act together. Maybe nudging them into making better marketing decisions by tax incentives is the way to go. Arg, who knows?

[gjertsen]

Was this a misprint, or am I not getting something? Why would this be called "American Hybrid Tax Credit Act of 2005" since it's already 2006?

[TimBikes]

I agree - this may not hold up under WTO scrutiny. Why focus on American manufactured cars only? Is the idea to save energy or jobs?

[mehrenst]

Won't the Toyota Camry hybrid be "assembled" in the U.S.?

[EricGo]

So will a flex-fuel vehicle that may never see anything but petrol it's entire life, get 20 mpg and have dirty emissions be eligible ?

[Blurry]

From what I understand, it's not just for American auto manufacturors. It's for hybrid vehicles assembled in the U.S., which will include the Camry and the Altima. I read about this the other day on this hybrid incentives site, which provides up to date information on incentives (such as free parking, tax incentives, etc.) for the U.S. and state by state. It's a good site:

http://go.ucsusa.org/hybridcenter/incentives.cfm

Here's the info from this site:
Domestic hybrid extended tax credit (bill): Congressman Rahm Emanuel (D-IL) has introduced H.R. 4458, the 'American Hybrid Tax Credit Act of 2005.' The bill would give an additional $3,000 tax credit over and above the currently enacted federal tax credits for "a new qualified hybrid motor vehicle which is assembled in the United States." The total tax credit would be capped at $6,000. This would currently apply to the Ford Escape Hybrid and Mercury Mariner. Models expected to be released in 2006 that would qualify for this extended credit would be the Toyota Camry Hybrid (built in Kentucky) and the Nissan Altima Hybrid (built in Tennessee). Referred to the Ways and Means Committee 12/7/05.

I also learned there that some members of congress are proposing to lift the 60,000 limit on tax credits.