| Legislation to provide tax rebates for purchasing new fuel efficient cars and trucks has passed the U.S. House of Representatives. The Consumer Assistance to Recycle and Save Act (H.R. 2751), also known as the “Cash for Clunkers” bill will give consumers vouchers of up to $4,500 to trade-in older gas guzzling vehicles. Washington DC – Legislation to provide tax rebates for purchasing new fuel efficient cars and trucks has passed the U.S. House of Representatives. The Consumer Assistance to Recycle and Save Act (H.R. 2751), also known as the “Cash for Clunkers” bill will give consumers vouchers of up to $4,500 to trade-in older gas guzzling vehicles.
Eighth District Congressman Jim Oberstar supported the bill because it accomplishes three key goals. “ This legislation helps us reduce greenhouse gases, decreases our dependence on foreign oil and saves jobs in the struggling auto industry,” said Oberstar. “We can improve our environment and stimulate the economy at the same time.”
“This is legislation that will put money directly in the pockets of consumers. In addition to the tax credit, this legislation will save Minnesota drivers considerable money at the gas pump,” said Oberstar. The Department of Energy estimates that a motorist driving 15,000 miles a year, purchasing gas at $2.34 a gallon would save $780 a year by switching from a car getting 18 miles per gallon to one getting 30.
A similar bill has been introduced in the Senate and referred to committee for further consideration.
Summary of HR. 2751 The Consumer Assistance to Recycle and Save Act of 2009
Consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel efficient cars and trucks. The program will provide for approximately one million new car or truck purchases. The agreement divides these new cars and trucks into four categories. Miles per gallon figures below refer to EPA “window sticker” values
· Passenger Cars: The old vehicle must get 18 mpg or less. New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.
· Light-Duty Trucks: The old vehicle must get 18 mpg or less. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.
· Large Light-Duty Trucks: New large trucks (pick-up trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
· Work Trucks: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of these vouchers, based on this vehicle class’s market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000 – 8,500 pounds. |
No comments:
Post a Comment