Bush Budget Pushes Tax Credits for Hybrid Vehicles

AUTOMOTIVE NEWS reports that the Bush administration on Monday asked Congress to approve tax credits of up to $4,000 for buyers of hybrid-powered vehicles and up to $8,000 for purchasers of fuel-cell-powered vehicles. The request is part of President Bush's proposed $2.13 trillion budget for fiscal 2003. The administration tax credit plan is nearly identical to legislation that is already under consideration in the Senate and is similar to a bill already passed by the House. Automakers and environmental groups favor tax credits, with some variations. The near-unanimous support means that if lawmakers and the administration can overcome other political differences, there is now no significant obstacle in the way of legislation to provide sizable incentives to buyers of advanced-technology vehicles. Automakers have maintained that government incentives are needed in order to get more consumers to try gasoline-electric hybrid vehicles, some of which are already on the market, and fuel-cell-powered cars and trucks, which are supposed to reach the market sometime this decade.