Vehicle Energy Performance Act of 2025

Bill 119 HR 1293, also known as the Fuel Economy Improvement Act, aims to amend the Internal Revenue Code of 1986 in order to provide tax incentives and fees that will encourage the increase of motor vehicle fuel economy. The bill is designed to promote the use of more fuel-efficient vehicles in order to reduce greenhouse gas emissions and combat climate change.

Under this legislation, manufacturers of fuel-efficient vehicles will be eligible for tax incentives, while those producing less efficient vehicles will face fees. These incentives and fees are intended to incentivize the production and purchase of vehicles with higher fuel economy ratings, ultimately leading to a reduction in overall fuel consumption and emissions.

The bill also includes provisions for the establishment of a Fuel Economy Improvement Fund, which will be used to support research and development efforts aimed at further improving vehicle fuel economy. Additionally, the legislation includes measures to increase consumer awareness of fuel economy ratings and to promote the adoption of alternative fuels. Overall, Bill 119 HR 1293 seeks to address the pressing issue of climate change by encouraging the use of more fuel-efficient vehicles. By providing tax incentives and fees, as well as supporting research and development efforts, the legislation aims to promote a shift towards cleaner and more sustainable transportation options.