Bill > HR1293

This bill introduces the Vehicle Energy Performance Act of 2025, which establishes a comprehensive approach to incentivize and regulate motor vehicle fuel economy. The bill creates a new tax credit system for high-energy performance vehicles, allowing taxpayers to receive up to $5,000 for purchasing new vehicles that exceed the median fuel economy for their model year, starting with model year 2027. Simultaneously, the bill implements a fee for "low energy performance vehicles" beginning in model year 2029, which imposes a tax on manufacturers selling vehicles with fuel economy below the median. The credit and fee amounts are calculated based on a vehicle's combined fuel-economy rating, with provisions for annual adjustments for inflation. The bill also updates fuel economy measurement and reporting requirements for dual-fueled automobiles, mandating more precise labeling of alternative fuel and combined fuel usage. Additionally, the legislation includes provisions for transferring tax credits, ensures compliance with air quality and motor vehicle safety standards, and requires vehicle manufacturers to report detailed fuel performance data annually. These measures aim to encourage the production and purchase of more fuel-efficient vehicles, ultimately promoting environmental sustainability and reducing energy consumption in the transportation sector.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1293/all-info