Bill would expand hybrid tax credits

WASHINGTON - Buyers of gas-electric hybrid cars and other fuel efficient vehicles could receive bigger tax breaks under legislation reintroduced in Congress this week.

Rep. Dave Camp, a Michigan Republican, proposed a bill that would offer tax credits of between $600 and $4,000 per vehicle, depending on the model and the energy-saving technology used.

President Bush also supports the incentives, providing for them in his 2006 budget proposal. Democrats and environmentalists welcome the idea as well, saying its a practical way to transition to a cleaner and less oil-dependent future.

The current one-time federal tax deduction of $1,000 for a hybrid car or truck drops to $500 next year and will be phased out in 2007. Some states also offer tax incentives for hybrid vehicles.

Available & upcoming hybrids DaimlerChrysler Diesel-electric Dodge Ram: Pickup gets 15 percent mileage boost. 2008: Dodge Durango SUV with 25 percent mileage improvement. Ford Escape Hybrid: SUV rated at 36 in city driving with two-wheel-drive model, nearly double that of the gas-only Escape. Highway driving rated at 31 mpg. Mercury Mariner SUV: 33 mpg in the city, 29 on the highway. 2007: Mazda Tribute SUV, no mileage data yet. 2008: Ford Fusion and Mercury Milan sedans, no mileage data yet. General Motors GMC Sierra/Chevrolet Silverado: 2WD models get 18 mpg city, 21 mpg highway for an increase of 10-12 percent over gasoline siblings. Saturn Vue: SUV rated at 27 mpg in city and 32 mpg highway — a 20 percent increase over gasoline sibling. 2007: Saturn Aura sedan, no specs available. Chevy Tahoe, GMC Yukon, up to 35 percent mpg boost. Chevrolet Malibu, 15 percent increase. 2008: Chevy Silverado and GMC Sierra pickups that get up to 35 percent mpg increase. Honda Insight: two-door rated at 56 mpg on highway and in city but discontinued starting in 2007 model year. Civic Hybrid: four-door rated at 51 mpg on highway and 49 mpg in city. Accord Hybrid: rated at 35 mpg on the highway, 29 mpg in the city. Nissan Fall 2006: Hybrid version of midsize Altima. Toyota Prius: Sedan rated at 60 mph in city, 51 mpg on highway. Lexus RX 400h: SUV rated at 31 mpg in city driving, two thirds more than its gas-only RX 330 sibling. Highlander Hybrid: SUV is rated at 32/27 mpg in city/highway driving based on two-wheel-drive model. Lexus GS 450h: Sports sedan rated at 25 mpg in city and 28 mpg highway, along with 339 horsepower. Camry Hybrid: Sedan rated at 40 mpg in city, 38 on highway.

Legislation similar to Camp’s plan cleared the House of Representatives last session as part of a broad-based energy bill that fell one vote short of passage in the Senate.

While energy saving gas-electric hybrid vehicles are becoming more popular with the public and more are being made, they are not a mass-market product or a profit maker for manufacturers.

Operating with an electric motor and a gasoline engine and getting up to 60 miles per gallon in some cases, hybrids usually sell for $3,000 dollars more than comparable gasoline-only cars and trucks.

Other technologies covered by Camp’s bill, which was endorsed by auto manufacturers, include leaner burning diesel fuel and fuel cells, which are still in the testing phase.

Bush is proposing extending the credit through 2008. The president would also make a credit of up to $8,000 available for the purchase of fuel cell vehicles between 2005-2012.

Fuel cell vehicles are still to expensive to sell to the public, and only General Motors has said it would try to commercialize the technology within the next decade.

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