Clean Vehicle Incentive Act

The purpose of this Act is to repeal and replace section 4064 of the Internal Revenue Code of 1986 (commonly known as the “Gas Guzzler Tax”) so as to:

1.      Eliminate the existing excise tax on passenger cars and light vans.

2.      Establish a manufacturer tax credit of $1,000 for each new vehicle meeting clean-energy or small-engine standards (electric, hybrid, or gasoline engines no larger than 4.4 liter 4-cylinder).

3.      Maintain a surcharge on all vehicles with a gross vehicle weight rating (GVWR) over 6,000 pounds that fail to meet the EPA’s combined fuel-economy threshold, with surcharges ranging from $1,000 up to $7,700 per vehicle.