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October 03, 2006

Tax Break Proposed for Fuel Efficiency

Bob Bennett, R-Utah, and Oregon Democratic Sen. Ron Wyden unveiled legislation Monday to offer a tax break of between $630 and $1,860 for consumers buying new, fuel-efficient vehicles as motivation to wean the nation off its oil dependence. The tax break - which they say could also be used as a cash rebate on a car purchase - would be offset under the duo's plan by rolling back a tax deduction used by large oil companies for drilling and development costs. Vehicles that get 25 percent more fuel efficiency than current standards would qualify under the legislation Under the bill, consumers would receive a $630 tax credit if they purchase a passenger vehicle with fuel economy of 34.5 miles per gallon. That tax credit gradually increases to a maximum $1,660 for passenger vehicles with fuel efficiency of at least 59.5 miles per gallon. Light trucks qualify for a $630 tax credit at 27.5 miles per gallon, going to $1,860 with...

Posted by dymaxion at October 3, 2006 11:33 PM

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