Bill · H.R. 1293· House(119-HR-1293)
Vehicle Energy Performance Act of 2025
- Introduced
- 2/13/2025
- Last activity
- 2/13/2025 — Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Sponsored by
- Sean Casten
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill, titled the "Vehicle Energy Performance Act of 2025," aims to amend the Internal Revenue Code of 1986 to adjust motor vehicle fuel economy through tax incentives and fees. It establishes a new tax credit for taxpayers who purchase new qualified high energy performance motor vehicles. To balance this, it imposes a tax on manufacturers of low energy performance vehicles. Additionally, the bill updates how fuel economy is measured and reported for dual fueled automobiles. These changes are designed to influence the energy performance of passenger automobiles and light trucks.
Yes· 3 of 8
Does this cut the pollution that drives climate change?+6
The bill incentivizes higher fuel economy through tax credits and penalizes low performance vehicles through fees.
Would middle-income households be better off under this?+5
The bill offers a significant tax credit for purchasing energy efficient vehicles.
Does this cut taxes for middle-income families?+5
The bill provides a tax credit of up to $5,000 for the purchase of high energy performance motor vehicles.
The opposite
Does this raise the taxes companies pay?-4
The bill imposes a new tax on manufacturers of low energy performance vehicles.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Credits for High Performance Vehicles: Taxpayers can receive a credit of up to $5,000 when they purchase a new qualified high energy performance motor vehicle (Section 2(a)). This credit is based on how the vehicle's energy performance compares to the median and best performing vehicles of the previous model year (Section 2(a)(2)).
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Transferable Credits for Buyers: A taxpayer may transfer their refundable credit to a dealer at the time of purchase, which could potentially reduce the upfront cost of the vehicle (Section 2(c)(2)(B)(i)).
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Improved Fuel Economy Information: For dual fueled automobiles, the bill requires more detailed fuel economy labeling, including the fuel economy when operated primarily on alternative fuel and a multi-day average when using a combination of fuels (Section 4(b)).
Potential Negative Impacts for People
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New Fees on Low Performance Vehicles: Manufacturers will be subject to a tax on the sale of "low energy performance vehicles," which could impact the pricing of those vehicles (Section 3(a)).
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Tax Credit Restrictions: The tax credit is not available for vehicles used by certain tax-exempt entities if they are not subject to a lease (Section 2(e)(2)). Additionally, no credit is allowed for property used outside of the United States (Section 2(e)(3)).
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Compliance Requirements: To be eligible for the credit, a vehicle must comply with specific Clean Air Act and motor vehicle safety provisions (Section 2(e)(6)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Environment Energy And Infrastructure
- Reduces Carbon Emissions+6Improves Environmental Protections+4Increases Renewable Energy Investment+3
- Demographic And Interest Groups
- Good For Middle Class Households+5Good For High Income Households+3Good For Low Income Households+2
- Economy And Finance
- Reduces Middle Class Taxes+5Improves Consumer Protection+3Increases Corporate Taxes-4
- 2/13/2025
- Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 1 Cosponsor added.
- Introduced in House
Doris MatsuiDemocrat · California