Senate Panel OKs Energy Incentives
Advocates of alternative fuel vehicles got a Valentine’s Day present last week when the Senate Finance Committee approved the Energy Tax Incentives Act of 2002 and sent it to the full Senate for a vote.
The measure, which also must go to the House, was introduced by Sen. Orrin G. Hatch (R-Utah) and cosponsored by seven other Republican senators, six Democrats and Vermont Independent James M. Jeffords.
It would provide $14.6 billion for a variety of alternative fuel programs, including a $2-billion package of tax credits and incentives for purchase of alternative fuel vehicles such as those that run on natural gas or electricity. The measure also would provide credits for fuel cells. Tax credits for purchase of such vehicles would range from as little as $250 for a limited-use hybrid to $40,000 for a fuel-cell or electric bus or heavy truck.
A natural gas-powered passenger car such as Honda’s Civic GX probably would qualify for an incentive in the $2,500-$4,000 range; battery-powered electric cars and light trucks would qualify for credits of $4,000 to $6,000, and future fuel-cell vehicles could qualify for up to $8,000. Efficient hybrid passenger cars such as the Toyota Prius and the Honda Insight would qualify in the $2,000-$3,000 range, supporters of the bill say.
The measure would provide credits of up to $130,000 for installation of alternative fuel infrastructure--such as natural gas pumps or electric recharging stations. It also provides tax credits of up to 50 cents per gallon, or gallon-equivalent, for purchase of alternate fuels such as natural gas, propane, hydrogen and methanol.
The Senate is expected to take up the bill as early as Feb. 25.
“The provision is in President Bush’s budget, and for the first time since 1997 it looks like success is in sight” for proponents of tax credits for advanced vehicles and alternative fuel vehicles, said Jason Mark, director of the Union of Concerned Scientists’ Clean Vehicle Program.
Major supporters of the bill include UCS, Natural Resources Defense Council and other major national environmental groups as well as car makers Ford Motor Co., Toyota Motor Corp. and Honda Motor Co.
