CLEAR ACT Reintroduced in U.S. Senate to Promote Alt-Fuel, Hybrid, and Electric Vehicles
WASHINGTON, D.C. — Senator Orrin Hatch, supported by a coalition of environmental groups, automakers, and alternative fuel associations, re-introduced to Congress for the third time the CLEAR ACT — Clean Efficient Automobiles Resulting from Advanced Car Technologies, according to the Green Car Congress.
WASHINGTON, D.C. — Senator Orrin Hatch, supported by a coalition of environmental groups, automakers, and alternative fuel associations, re-introduced to Congress for the third time the CLEAR ACT — Clean Efficient Automobiles Resulting from Advanced Car Technologies, according to the Green Car Congress. The CLEAR ACT is designed to lower the cost barriers to implementing alternative fuels and advanced technologies through the use of tax incentives, most of which go directly to the consumer.
A base credit of up to $1,000 on hybrid-electric vehicles for the amount of electric drive power along with an additional credit of up to $3,000 depending upon fuel economy performance. These credits are available for six years.
A base credit of $4,000 and an incremental credit of $2,000 for battery-electric vehicles with extended range or payload capabilities.
A base credit of up to $2,500 for dedicated alternative-fuel vehicles (CNG, LPG, LNG) with an additional $1,500 credit for vehicles certified to Super Ultra Low Emission (SULEV) standards. Flex-fuel vehicles are not eligible since they can operate on either gasoline or E-85 (ethanol) and are available in the market without any incremental cost.
A $4,000 base credit for fuel cell vehicles along with an additional credit of up to $4,000 depending on fuel economy performance. These credits are available for 10 years.
Credits for medium- and heavy-duty vehicles based on individual weight categories and amounts varying with the largest vehicles over 26,000 lbs. receiving up to $40,000 for fuel cell or battery electric, $32,000 for alternative fuel, or $24,000 for hybrid applications.
A credit of 50 cents for every gallon of gas equivalent of alternative fuel (such as natural gas, LNG, LPG, hydrogen, B100, and methanol) is provided to the retail distributor. This credit is available for six years. (Presumably it is up to the distributor to decide whether or not to reflect the credit in its end-user pricing.)
An extension of an existing $100,000 tax deduction for 10 years and a credit for actual costs of up to $30,000 for the installation of alternative fuel sites available to the public.
More Fuel

October Fuel Trends Show Diverging Gasoline and Diesel Prices
Get the latest fuel trends from October.
Read More →
Fuel Prices Surge in September | September Fuel Update
September brought major fuel price swings, including diesel crossing $6 a gallon. Here’s how gas and diesel prices changed throughout the month, and where they stood heading into October.
Read More →Turning Fleet Payment Data into Executive Insights
Ramel Lindsay of U.S. Bank Voyager discusses how fleets can transform payment and transaction data into actionable intelligence to reduce costs, improve oversight, and support executive decision-making.
Read More →
Why the IRS Raised Its Mileage Rate in the Middle of 2026
Fuel-price volatility drove the rare increase to 76 cents per mile, the fifth midyear adjustment since 2000.
Read More →
July Fuel Update: Prices Keep Rising in Light of More Conflict
Gas prices continue to rise as more and more conflicts do, too.
Read More →
Bob Adamsky on Fuel Volatility: "Don't Panic, Have a Plan."
When it comes to up and down fuel prices, Adamsky has a message for fleets: “Don’t panic.”
Read More →How Fleets Can Gain Control of Non-Fuel Spend
Fuel often gets the spotlight, but non-fuel expenses can have a major impact on fleet costs. Ramel Lindsay of U.S. Bank Voyager discusses how fleets can gain better visibility and control over these often-overlooked expenditures.
Read More →
Fuel is Just the Start: How Middle East Tensions are Driving Up Fleet Maintenance Costs
The Middle East conflict is doing more than pushing up fuel prices. It’s also raising the cost of key maintenance products your fleet depends on, from motor oil to tires to windshield wipers. Here’s what you need to know about this budget-busting situation.
Read More →
June Fuel Update: Prices Fall Below $4
Drivers are finally getting some relief at the pump. The national average gas price has dropped below $4 a gallon for the first time in months, with prices falling in 47 states as oil markets react to developments in U.S.-Iran negotiations.
Read More →
Study: How 2026's Gas Price Hikes Affect Different Vehicle Types
New data from iSeeCars reveals how rising fuel costs have affected different vehicle segments as gasoline prices climbed nearly 46% over the past four months.
Read More →