The CLEAR ACT (Clean Efficient Automobiles Resulting
from Advanced Car Technologies Act) is an effort to accelerate the
development of eco-friendly automotive technologies and their assimilation
into the automotive market by providing strategic tax breaks and
incentives to consumers and infrastructure developers.
The
purpose of the CLEAR ACT is to "promote cleaner air by reducing
the consumption of petroleum and advancing alternate fuels."
The automotive technologies promoted by the CLEAR
ACT are those used in fuel cell vehicles, which
use compressed hydrogen gas to generate electricity to power an
electric motor; hybrid electric vehicles, which
use an electric motor to assist a gasoline powered engine; dedicated
alternative fuel vehicles, which use alternative fuels
such as natural gas, LPG, and LNG to power a combustion engine;
and battery electric vehicles, which rely on an
onboard rechargeable battery to power an electric motor.
Through the use of the tax incentives detailed
below, the CLEAR ACT would lower the major barriers associated with
acceptance of alternative fuel technologies; the higher cost of
the vehicles, the lack of fueling stations providing alternative
fuels, (also known as infrastructure) and the higher cost of alternative
fuels.
-
A $4,000 base tax credit awarded for the
purchase of a fuel cell vehicle, and an additional
credit of up to $4,000; depending on the fuel economy performance.
-
A $1,000 base tax credit awarded for the
purchase hybrid electric fuel vehicle, and
an additional credit of up to $3,000; depending on fuel economy.
-
A $2,500 base tax credit awarded for the
the purchase of a dedicated alternative fuel vehicle,
and an additional credit of up to $1,500 for AFV's that achieve
a Super Ultra Low Emissions rating.
-
A $4,000 base tax credit awarded for the
purchase of a battery electric vehicle, and
an additional credit of up to $2,000 for vehicles with extended
range or payload capabilities.
-
The CLEAR ACT offers a range of credits for
medium and heavy duty vehicles. Fuel cell or
battery electric medium or heavy duty vehicles earn a tax credit
of up to $40,000; medium or heavy alternative fuel vehicles
earn a tax credit of up to $32,000; and medium or heavy hybrid
electric vehicles earn a tax credit of up to $24,000.
-
A credit of 50 cents for every gallon of
gas equivalent is provided to retail distributors will be provided
for 6 years as an incentive.
-
In addition to the fuel credit, the CLEAR
ACT provides a credit of up to $30,000 to assist with the actual
costs of installing an alternative fuel site that is available
to the public.
Why focus on automobiles?
The CLEAR ACT focuses primarily on promoting a
responsible and secure energy policy through vehicles because alternate
and advanced fuel technologies are more economical and effective
than industrial or domestic options. Additionally, "transportation
accounts for nearly 2/3 of all oil consumption." Use of these
technologies can help reduce our overwhelming dependence on foreign
oil.
Why give tax breaks?
Alternative fuel vehicles cost more than their
traditional gasoline powered brethren, and tax breaks help to fill
that gap. In his Senate press conference, Orrin Hatch (Republican-Utah)
attributed the localized high demand for hybrids:
"I have heard one or two people question the
need for incentives for hybrid vehicles... it may be true that demand
for these vehicles is high in a few areas... [that] tend to have
local or state incentives in place for the purchase of these vehicles.
Where incentives are not in place, hybrid sales are minimal... incentives
can indeed provide a market breakthrough to consumer acceptance
of alternative vehicles."
You
can help support cleaner air and a more responsible energy policy.
Spread the word. By linking to
this page, you can help spread the word about the CLEAR ACT. For
your convenience, sample code is provided below.
<a href="http://www.hybrid-car.org/clear-act-2005.html">CLEAR
ACT 2005</a>
Please feel free to reproduce the information on
this page as long as you directly site this page as the source of
the text, and provide a link in return.
Contact your Senators. Take a
few minutes to print and mail personalized letters, letting your
State Senators know that you support the CLEAR ACT. Be sure to reference
bill S.971. To find the mailing addresses for your state Senators,
click here.
The following groups support the CLEAR ACT:
S.971 Status Updates:
- 4/28/2005 - Referred to Senate committee. Status:
Read twice and referred to the Committee on Finance
