Vehicle Energy Performance Act of 2024
10/9/2024, 1:38 AMSummary of Bill HR 9780
Bill 118 hr 9780, also known as the Vehicle Energy Performance Act of 2024, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to promote the development and use of energy-efficient vehicles in order to reduce greenhouse gas emissions and combat climate change.The bill includes several key provisions. First, it establishes new fuel efficiency standards for all vehicles sold in the United States. These standards would require automakers to produce vehicles that meet certain energy performance criteria, such as miles per gallon requirements or emissions limits.
Additionally, the bill provides incentives for consumers to purchase energy-efficient vehicles, such as tax credits or rebates. These incentives are designed to make it more affordable for individuals to choose environmentally friendly transportation options. Furthermore, the bill allocates funding for research and development of new technologies that can improve the energy performance of vehicles. This includes investments in electric vehicles, hydrogen fuel cells, and other alternative fuel sources. Overall, the Vehicle Energy Performance Act of 2024 aims to reduce the environmental impact of transportation and promote the use of cleaner, more sustainable vehicles. Supporters of the bill argue that it will help the US meet its climate goals and create a more sustainable future for generations to come.
Congressional Summary of HR 9780
Vehicle Energy Performance Act of 2024
This bill creates a refundable tax credit for new qualified high energy performance motor vehicles. The bill also modifies the calculation of the excise tax on fuel-inefficient vehicles (gas guzzler tax).
The amount of the tax credit is based on a vehicle’s energy performance in the current and prior model year in comparison with the median and best vehicle energy performance overall in the prior model year. The maximum tax credit allowed is $5,000 beginning with model year 2026.
The bill defines a new qualified high energy performance vehicle as any passenger automobile or light truck with a greater than median energy performance as compared to the same passenger automobile or light truck for the prior model year. A vehicle’s energy performance is based on miles per gallon-gasoline equivalent (MPGe).
The bill requires the Department of the Treasury to publish the median and best vehicle energy performance for the model year by December 1, 2025, and for each year after, based on information reported by vehicle manufacturers.
Finally, the bill imposes an excise tax on vehicles with low energy performance (beginning with model year 2028), which is based on a vehicle’s energy performance in the current and prior model year in comparison with the median and best vehicle energy performance overall in the prior model year. Under current law, the gas guzzler tax is imposed on vehicles that do not meet a fuel efficiency standard of at least 22.5 miles per gallon (MPG).
