Amends the Internal Revenue Code of 1986 to introduce tax incentives and fees aimed at improving motor vehicle fuel economy.
Establishes a new tax credit, known as the Vehicle Energy Performance Rebate, for new qualified high energy performance motor vehicles.
The credit amount can be up to $5,000, based on the vehicle’s energy performance compared to median and best performance ratings from the previous model year.
Defines “new qualified high energy performance motor vehicle” with specific criteria, including compliance with Clean Air Act standards and being manufactured starting from model year 2026.
Allows for the credit to be treated as a refundable personal credit, which can be transferred to the vehicle seller at the time of purchase.
Introduces a Low Vehicle Energy Performance Fee, imposing a tax on manufacturers for low energy performance vehicles starting from model year 2028.
Defines “low energy performance vehicle” and outlines exceptions for certain vehicle types, such as those used for emergency services.
Requires vehicle manufacturers to report energy performance data annually to the Secretary of the Treasury.
Mandates the Secretary to publish median and best vehicle energy performance ratings each year.
Includes provisions for inflation adjustments to the credit and fee amounts starting in subsequent model years.
Updates regulations regarding the measurement of fuel economy for dual-fueled automobiles and mandates labeling requirements for fuel economy information.
