WASHINGTON, D.C. — Buyers of gas-electric hybrid cars and other fuel-efficient vehicles could receive bigger tax breaks under legislation reintroduced in the U.S. Congress, according to the Web site, www.planetark.com. Rep. Dave Camp proposed a bill on February 8 that would offer tax credits of between $600 and $4,000 per vehicle, depending on the model and the energy-saving technology used. The current one-time federal tax deduction of $1,000 for a hybrid car or truck drops to $500 next year and will be phased out in 2007. Some states also offer tax incentives for hybrid vehicles. Legislation similar to Camp's plan cleared the House of Representatives last session as part of a broad-based energy bill that fell one vote short of passage in the Senate.

Originally posted on Fleet Financials