WASHINGTON, D.C. --- A bipartisan group of lawmakers has introduced legislation that includes tax credits for companies that purchase more fuel-efficient vehicles for their private fleets of 100 or more vehicles. Companies purchasing 10 or more vehicles at once with 125 percent higher efficiency, compared to corporate average fuel economy (CAFÉ) standards for that vehicle class, would receive a 15-percent tax credit.
The legislation, introduced in both the Senate and House of Representatives, is known as the Vehicle and Fuel Choices for American Security Act of 2005. Other provisions include tax breaks and loan guarantees to encourage automakers to produce more alternative-fuel vehicles. Additional incentives are aimed at the development of alternative fuels.
The legislation also calls for the Secretary of Energy to issue regulations for federal and state fleets to reduce petroleum consumption by 30 percent (from a 1999 baseline) by 2016. Hybrids would qualify under EPAct fleet requirements. The bill calls for 30 percent of the federal fleet requirement (22.5 percent of the total fleet requirement) to be met by advanced diesels, hybrids or plug-in hybrids in 2016.
Among the sponsors of the bill are Senator Joe Lieberman (D-Conn.), Senator Evan Bayh (D-Ind.), Senator Lindsay Graham (R-S.C.) and Senator Sam Brownback (R-Kansas).
The legislation seeks to save 2.5 million barrels of oil per day by 2016, at least 7 million barrels per day by 2026, and 10 million barrels per day by 2031.
Originally posted on Fleet Financials