This legislation seeks to help consumers value efficiency when purchasing a new car or truck by establishing a Fuel Performance Rebate/Fee system. Any consumer buying a new vehicle that has greater fuel efficiency that the applicable CAFÉ standard will receive a Fuel Performance Rebate, in an amount proportionate to the new vehicle’s excess fuel efficiency above CAFE. The consumer can apply the rebate to reduce the purchase price or choose a refundable income tax credit.
One advantage to this approach is that is it technology neutral rather than in past years when new tax credits were applied for certain kinds of fuel-efficient vehicles such as such as hybrid, plug-in electric, and fuel cell vehicles.
TechVision21 supports Congress incentivizing the purchase of highly efficient conventional vehicles as well as supporting American innovators who continue to design and manufacture new alternatives. Measures such as this one appropriately target the desired outcome — greater fuel efficiency — and allow entrepreneurs to develop the most effective technology solution.