Bush Budget Includes $4,000 Tax Credit for Hybrid EVs

Fuel cell vehicles would qualify for $8,000 tax credit.

Published: 05-Feb-2002

DETROIT, Feb 4 (Reuters) - Consumers who buy gasoline-electric hybrid vehicles in the next seven years would get up to $4,000 in tax credits under President Bush's proposed budget, while buyers of fuel-cell vehicles could get up to $8,000.

The proposals come just as the Bush administration, Congress, automakers and environmentalists are wrestling over how federal fuel economy standards should be revamped or raised. U.S. automakers have been ardent supporters of such tax credits, saying that consumers would otherwise be reluctant to pay for the higher costs of designing and building environmentally friendly models.

But one environmentalist said the tax proposal would not reduce fuel use if it gives automakers room under federal fuel efficiency standards to crank up production of gas-thirsty sport utility vehicles and pickups.

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