Clean Vehicle Incentive Act

Clean Vehicle Incentive Act

Transportation is one of the largest contributors to carbon emissions in America. The current “Gas Guzzler Tax” has failed to drive meaningful change, leaving loopholes for heavy vehicles while doing little to reward clean innovation. The Clean Vehicle Incentive Act repeals and replaces that system with a modern approach that rewards clean vehicles and holds gas-guzzlers accountable.

Key Principles

• Reward Clean Innovation:

  • $1,000 manufacturer tax credit for each new electric vehicle, hybrid with 20+ mile electric range, or small-engine car (≤4.4L, 4-cylinder).
  • Ensures cleaner cars are not just built but widely available.

• Hold Heavy Vehicles Accountable:

  • Surcharge on vehicles over 6,000 lbs that fail fuel economy thresholds, ranging from $1,000 to $7,700.
  • Creates real market pressure for manufacturers to clean up trucks and SUVs.

• Stronger Oversight:

  • EPA certifies which vehicles qualify, verifying electric-drive capabilities, hybrid ranges, and engine specifications.
  • Prevents abuse of credits and ensures compliance.

• Fair and Modernized Standards:

  • Eliminates outdated excise taxes.
  • Establishes clear thresholds: vehicles achieving 28 MPG or more are exempt from surcharges.
  • Effective for vehicles manufactured and sold after June 30, 2025.

This Act aligns environmental responsibility with economic incentives—rewarding innovation while penalizing waste. It puts pressure on manufacturers to shift toward cleaner fleets and gives consumers more access to affordable clean vehicles.

A cleaner future requires cleaner cars—this Act makes it happen.