What does Preamble of Vehicle Energy Performance Act of 2025 do?

This bill, formally titled 'To amend the Internal Revenue Code of 1986 to provide tax incentives and fees for increasing motor vehicle fuel economy, and for other purposes,' aims to modify the Internal Revenue Code. The bill intends to provide tax incentives and fees related to increasing motor vehicle fuel economy. The bill was introduced by Mr. Casten and Ms. Matsui.

What does SHORT TITLE. of Vehicle Energy Performance Act of 2025 do?

This bill is formally titled the Vehicle Energy Performance Act of 2025

What does TAX CREDIT FOR VEHICLE ENERGY PERFORMANCE. of Vehicle Energy Performance Act of 2025 do?

This section establishes a tax credit for vehicle energy performance. The credit is allowed against the tax imposed by this chapter for the taxable year. The credit amount is determined based on the vehicle's energy performance compared to the median and best vehicle energy performance for the model year. The credit is refundable and may be transferred to the seller of the vehicle. The section defines key terms such as 'vehicle energy performance', 'median vehicle energy performance', and 'best vehicle energy performance'. The section also provides for special rules, including basis reduction, property used by tax-exempt entities, and recapture of the credit. Vehicle manufacturers are required to report vehicle energy performance to the Secretary. The Secretary is required to publish the median and best vehicle energy performance for each model year.

What does LOW VEHICLE ENERGY PERFORMANCE FEE. of Vehicle Energy Performance Act of 2025 do?

This section imposes a tax on the sale of low energy performance vehicles The tax is calculated based on the vehicle's energy performance compared to the median and best performance for the model year The term 'low energy performance vehicle' refers to passenger automobiles or light trucks with energy performance lower than the median Exceptions are made for certain vehicles, including those with a gross vehicle weight rating over 8,500 pounds and those used for commercial or emergency purposes The tax amount is subject to inflation adjustment for model years beginning after 2029

What does FUEL ECONOMY OF DUAL FUELED AUTOMOBILES. of Vehicle Energy Performance Act of 2025 do?

This section amends 49 U.S.C. § 32905(e) to require the Administrator to allow manufacturers to request fuel economy measurement for electric dual-fueled automobiles, rather than allowing discretion, and changes the applicable model year from 2015 to 2026. The Administrator is required to review and update the formula for determining fuel utilization on alternative fuel and gasoline/diesel fuel every three years, using real-world data if possible. Section 32908(b)(3) is amended to require labeling of fuel economy when operated primarily on alternative fuel and a multi-day average fuel economy when operated on a combination of fuels, with percentages determined by a formula updated at least every three years. The fuel economy information booklet (32908(c)(2)(B)) is updated to include information on multi-day average fuel economy for automobiles using a combination of fuels. The amendments apply to automobiles of model year 2027 or later.

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Vehicle Energy Performance Act of 2025

Last updated: 2/13/2025 · Introduced: 2/13/2025

Author: Sean Casten (D-IL)

TL;DR (AI)

The bill establishes a tax credit for vehicle energy performance, which is refundable and may be transferred to the seller of the vehicle, based on the vehicle's energy performance compared to the median and best vehicle energy performance for the model year.
A tax is imposed on the sale of low energy performance vehicles, calculated based on the vehicle's energy performance compared to the median and best performance for the model year, with exceptions for certain vehicles.
The bill amends fuel economy regulations to require manufacturers to measure fuel economy for electric dual-fueled automobiles and updates labeling requirements for fuel economy information, including multi-day average fuel economy for automobiles using a combination of fuels.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 3 more.

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