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| Wilson Bill Encourages Fuel Efficient Vehicles |
April 28, 2006 |
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Legislation Expands Small Business Deduction Incentive to More Efficient Vehicles
Washington, DC – Congresswoman Heather Wilson (R-NM) today introduced a bill to expand the small business depreciation deduction to encourage the purchase of fuel-efficient vehicles.
The Wilson bill would expand the depreciation deduction for electric vehicles to include alternative-fuel vehicles. The improvement would encourage small business owners to consider the cost savings of efficient vehicles. It would also adjust the depreciation deduction for less-efficient SUVs.
“The economy is rolling and creating jobs, but high fuel prices will inevitably cause belt-tightening in the budgets of working families and small businesses,” Wilson said. “We want a balanced energy policy in America that includes encouragement of fuel-efficient cars and trucks. This bill is another piece in the puzzle to reduce fuel use, and save small business owners money.”
The idea for the bill grew out of a discussion with small business owners at the Bernalillo Chamber of Commerce recently. The tax code is currently structured to give them more benefit for buying big pick-up trucks rather than small ones.
Specifically, the bill would expand the depreciation deduction, currently limited to electric vehicles, so that the provision encompasses all alternative fuel vehicles. That deduction is currently $8,880. The expansion would encourage small business owners to purchase fuel-efficient vehicles, and strengthen the case for the auto industry to consider production of more of these vehicles.
The legislation would also decrease the depreciation limit for business-owned SUVs – excluding trucks and vans – to $2,960 (from the current $3,260), the same as the deduction for most cars, to add an incentive for small business owners who purchase a vehicle as a business expense to consider other options.
It would give the same tax credit for light trucks as businesses can claim for heavy trucks.
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