Clarifications and Solutions to the Hybrid Tax Incentive Issue
Thursday, June 22nd, 2006The point of the hybrid tax breaks, I think we can all agree, is to reduce American dependence on oil. For this reason the tax breaks should try to give Americans an economic incentive to purchase a more fuel efficient vehicle when they are in the market for a car.
That’s why it doesn’t make sense that we are going to limit the tax breaks for a particular manufacturer, or allow any hybrid vehicle - even ones that are hybrid without the goal of reducing fuel consumption - to receive these tax breaks. The goal of these tax breaks is not to encourage people to buy hybrids just for the sake of buying hybrids - it’s to encourage people to reduce their fuel consumption while driving.
I believe that we need to do the following:
- Remove the caps per individual manufacturer.
- Require that the hybrid vehicle have a certain additional miles per gallon versus the original model before it qualifies for a tax break.
- Give tax breaks to ANY car that receives a high MPG rating
- For larger cars - focus on hydraulic hybrid technology (this is a really exciting technology) instead of gas-electric hybrid technology.

