Tax Incentives
CLEAR Act Introduced
On April 24 the Clean Efficient Automobles Resulting from Advanced Car Technologies
Act (CLEAR) Act was introduced by Sens. Orrin Hatch (R-UT), Jay Rockefeller (D-WV),
and Jim Jeffords (R-VT). The tax package contains performance-based tax incentives
for a variety of advanced vehicle technologies. The tax package is supported by
a broad range in organizations, including Ford, Toyota and Honda, as well as many
environmental organizations including the Clean Car Campaign.
Highlights of the package include:
- Fuel Cell Vehicles: A $4,000 base credit, with an additional $4,000 depending
on fuel economy performance.
- Hybrid Vehicles: Up to 1,000 based on the amount of electic drive power,
with up to an additional $3,000 depending on fuel economy.
- Dedicated Alternative Fuel Vehicles: A $2,500 base credit, with up to $1,500
for vehicles certified to SULEV standards.
- Battery Electric Vehicles: A $4,000 base credit, with an additional $2,000
available for vehicles with extended range or payload.
- Medium and Heavy Duty Vehicles: Vehicle credits are based on individual
weight classes with amounts varying by class. The top weight class(greater
then 26,000 pounds) includes up to $40,000 for fuel cell or electric vehicles,
$32,000 for alternative fuel and $24,000 for hybrid electric vehicles.
- Alternative Fuel Incentives: A credit of $0.50 per gallon of gas equivilant
is provided to retail distributorships of alternative fuels.
- Alternative Fuel Infrastructure: Extends an existing $100,000 tax deduction
for an additional ten years & provides a credit of up to $30,000 for the installation
of alternative fuel sites which are avilable to the public.
News Coverage and Background Information:
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To find out more about existing alternative fuel vehicle tax credits, go to the
Alternative Fuel Vehicle Fleet Buyer's Guide: Incentives and Laws
