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Washington, DC -- Today Congressman David Wu continued his fight for a common sense energy policy by offering two amendments to the Energy Policy Act (H.R.4503). H.R. 4503 is a new, but essentially identical version of the Bush Administration's Energy Bill, which passed the House of Representatives in November 2003.
"My amendments are designed to help provide a more sensible approach to our energy policy by including hybrid vehicles, which are more fuel efficient into the current law" said Congressman David Wu.
The first amendment extends a more favorable tax depreciation to hybrid (clean fuel) vehicles. Under current tax law, the depreciation of passenger cars is treated less generously than that of light trucks. Passenger cars, which are defined as motor vehicles weighing 6,000 pounds or less, are considered listed property and thus subject to annual limits on allowable depreciation deductions. By contrast, light trucks, which are defined as motor vehicles weighing more than 6,000 pounds, are generally depreciated under a different and more favorable set of rules.
The second amendment qualifies hybrid electric vehicles, as alternative fuel vehicles under the minimum federal fleet requirement. The Energy Policy Act of 1992 (EPAct) requires that federal and state agencies, as well as private firms that distribute alternative fuels, to purchase for their fleets a certain proportion of vehicles that are capable running on non-petroleum fuel. As of 2001, 75% of new light-duty vehicles (passenger cars and light trucks) purchased for certain fleets must be fueled by alternative fuel. Hybrid electric vehicles do not currently qualify as Alternative Fuel Vehicles under EPAct.
“We have the highest gas prices in twenty years and our tax code still disadvantages the most fuel-efficient vehicles on the market. Why under existing tax law does a small business which purchases a vehicle over 6,000 pounds get a bigger tax break than a business which purchases a fuel efficient hybrid vehicle?” asked Congressman David Wu.
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