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Alternative Fuel Vehicle Tax Incentives and the CLEAR ACT

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Publication Date: December 2004

Publisher(s): Library of Congress. Congressional Research Service

Series: RS21277

Topic: Energy (Fuels)
Manufacturing and industry (Automotive industry)

Abstract:

Alternative fuels (non-petroleum fuels such as natural gas and electricity) and advanced technology vehicles face significant market barriers, such as high vehicle purchase price and low availability of refueling infrastructure. In current law, there are tax incentives to encourage the purchase of these vehicles and to build new infrastructure to support them. In the 108th Congress, the Clean Efficient Automobiles Resulting from Advanced Car Technologies Act (CLEAR ACT, H.R. 1054 and S. 505) would have extended and expanded current incentives, and established new incentives. Some CLEAR ACT provisions were inserted into H.R. 6, the comprehensive energy bill.