EPA Promotes its Green Technology
Open-Source DIY Plug-in Prius...in a Weekend

Leaders of US Senate Finance Committee Introduce Bill for Increasing Tax Incentives for Alternative-Energy Vehicles

The Republican chairman and Democrat ranking member of the US Senate Finance Committee introduced legislation to increase significantly tax incentives for business owners who buy fuel-efficient alternative-energy vehicles—just as they now receive incentives for the purchase of SUVs.

If enacted, the bill, introduced by Senators Chuck Grassley and Max Baucus, would represent the biggest incentives for the business purchase of alternative energy vehicles ever to emerge from the Finance Committee.

The alternative energy vehicles include electric cars; hybrid cars; and vehicles that run entirely on alternative fuel such as compressed natural gas.

The tax code shouldn’t favor SUVs over alternative energy cars for business owners. Some business owners will want to use SUVs and some will want to use hybrid cars. The choice should be theirs and the tax code should be consistent. The purchase of either kind of vehicle will help business growth, especially for small businesses, which create most of the nation’s jobs.

—Chairman Grassley

At a time when America needs to shake its oil addiction, Congress needs to do all it can to encourage the purchase and use of alternative fuel vehicles. America’s small business owners are looking for ways to reduce their energy consumption and costs, and the tax code should provide benefits for those who can choose and use clean, lean alternative-fuel vehicles.

—Senator Baucus

Grassley and Baucus’ bill, the America’s Business Choice (ABC) Act, exempts passenger vehicles eligible for the alternative motor vehicle credit and the credit for qualified electric vehicles from the limitation on depreciation for luxury automobiles.

Under current depreciation rules, a business owner who buys an SUV gets a deduction for the depreciation not subject to the limitation for luxury automobiles. The Grassley-Baucus bill will provide the same depreciation deductions for business owners who buy alternative energy vehicles.

In addition, the Grassley-Baucus bill allows small business owners to use the tax benefit of expensing of up to $100,000 for their alternative energy vehicles. Under current law, business owners have not been able to use expensing if they purchased a passenger vehicle that costs more than $10,585 (adjusted for inflation to $14,800 for 2005 purchases).

Comments

stomv

Well, it's progress anyway. Maybe we can expand tax credits for green activity under the GOP administration, and remove tax credits for polluting activity under the upcoming Dem administration.

t

So, I have a vehicle that gets good gas mileage, but is not an alternative vehicle, I am still discriminated against, versus SUVs. Why the hell there were special rules for SUVs in the first place is outraqeous.

Alfred

The original bill that favors purchase of (big) SUV fails to answer one thing. How about the (small) business that never takes advantage of (big)SUV?

It is merely a bill that favors the following parties:
1.) (big) SUV manufacturers only
2.) Gasoline / diesel companies only

at the expenses of the following:
1.) Health(such as Air Quality) (Every American!)
2.) Lives of American Troops in Iraq (Our friends or even families)
3.) Small businesses never in need of (big)SUV

Ash

In the list of those benefiting, you forgot to list small and large businesses that use large vehicles.

But I think that ALL vehicles which are 100% business use should be 100% dedutable. Or at the very least they should remove the mileage and price caps on the ~$0.37/mile deduction for business vehicles under 6000Lbs. If one drive 100,000 miles/year on business, one should be able to write it ALL off.

tom deplume

Businesses whose vehicles average 100,000 miles/yr need an incentive to use more efficient vehicles. Lugging around a 6 liter engine when a less than 3 liter engine could do the job should not be subsidised by all other taxpayers.

HHN

The sooner we clear out all that unskilled Labor(Lawyers) in Congress and repair the Damage done to America,the better.
This is getting worse by the Minute,this fat Riff Raff needs to be culled asap.
No more corporate welfare!!!!!

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Your Information

(Name is required. Email address will not be displayed with the comment.)