[Congressional Record Volume 142, Number 137 (Saturday, September 28, 1996)]
[Senate]
[Page S11717]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CLEAN FUEL VEHICLE ACT OF 1996
Mrs. BOXER. Mr. President, in June of this year, along with my
colleagues Senators Inouye, Feinstein, Kennedy, Kerry, and Jeffords, I
introduced legislation (S. 1848) to provide temporary tax incentives to
spur the market for clean fuel vehicles, including natural gas and
electric vehicles. While this Congress has no time remaining to
consider this proposal, I intend to introduce the legislation in the
105th Congress, and I urge my colleagues to then consider the measure
and join me and others in promoting the transformation of our
transportation system to cleaner forms of energy.
This proposal calls for targeted tax incentives that would, first,
remove clean fuel vehicles from the luxury automobile classification
for luxury excise tax and depreciation purposes; second, remove the
limitations on the availability of credits and deductions for use of
electric vehicles by governmental units; third, provide deductions for
large electric vans and buses; fourth, adopt a straight, rather than
graduated, tax credit for electric vehicles; and fifth, exempt
liquefied natural gas from certain taxes.
Recently, the Joint Committee on Taxation provided a revenue estimate
of those provisions of the bill that provide tax incentives for clean
fuel vehicles. The committee previously reported to me that my
provision to levy the same rate of excise tax on liquified natural gas
as already is levied on compressed natural gas would result in a
revenue loss of only $4 million from 1997 to 2002. I urge my colleagues
to note, significantly, the committee estimated that for the other
provisions, items one through four above, for the 5-year period between
1997 and 2001 the total revenue impacts would equate to no more than
$15 million. Even more important, for this modest cost, we can spur the
development of vehicles that produce no tailpipe emissions.
Zero emission vehicles are not a pipeless dream so to speak. Many are
in use today, and they are scheduled to be in Saturn dealer showrooms
later this fall and soon on the lots of other automakers. Again, let me
state that we are not describing some far out in time technology; the
world's largest automobile manufacturer--General Motors--intends to
market an electric vehicle in the showrooms of one of its most
successful product lines.
General Motor's Saturn dealerships in southern California and
Phoenix/Tucson, AZ will begin selling electric vehicles this fall. Next
year, General Motors will offer, through Chevrolet dealers, an electric
light duty truck; Toyota and Honda will begin selling EV's; and
Chrysler has proposed to sell electric minivans to the U.S. Government.
In 1998, Ford Motor Co. will introduce a vehicle for the U.S. market,
as will Chrysler and Nissan. Many other companies in California and
throughout the United States also are actively involved in clean fuel
vehicle development.
Even with this degree of very promising activity, the market is
uncertain because the number of first-time buyers is uncertain. The
short-term tax incentives in my proposal will go far toward helping to
encourage the initial market. All of the tax provisions will sunset at
the end of the year 2004. Most important, we have an opportunity to
assist in creating new forms of personal transportation--ones that
produce little or no tailpipe emissions and that rely upon domestically
produced fuels. And, ones that use advanced computer-based technologies
that position U.S. industries to lead the transportation sector into
the next century.
This legislaton has been endorsed by the Union of Concerned
Scientists, the Electric Transportation Coalition, the Natural Gas
Vehicle Coalition of the USA, the city of Los Angeles and Potomac
Electric Power Co. I urge my colleagues to join me in this effort for a
clean-fuel 21st century and support my legislation next year.
I ask unanimous consent that a copy of the letter from the Joint
Taxation Committee be printed in the Record.
There being no objection, the letter was ordered to be printed in the
Record, as follows:
Congress of the United States,
Joint Committee on Taxation,
Washington, DC, September 24, 1996.
Hon. Barbara Boxer,
U.S. Senate,
Washington, DC.
Dear Senator Boxer: This completes our response to your
request for a revenue estimate corresponding to a draft bill
to provide certain tax incentives for electric vehicles and
other clean-fuel vehicles (the ``Clean Fuel Vehicle Stimulus
Act of 1996'').
In our letter of June 24, 1996, we provided you with a
revenue estimate for section 6 of your draft bill, which
would exempt liquified natural gas (``LNG'') from the Highway
Trust Fund component of the special motor fuels excise tax.
This letter contains a revenue estimate for sections 2
through 5 of your draft bill. These sections of the bill
would (a) remove clean-fuel vehicles from the luxury
automobile classification for luxury excise tax purposes and
exempt such vehicles from depreciation limitations, (b)
remove current restrictions on the availability of credits
and deductions for electric vehicles used by governmental
units, (c) provide certain deductions for large electric
trucks, vans, and buses in lieu of the credit for electric
vehicles, and (d) modify the credit for electric vehicles and
allow the credit to be applied against the alternative
minimum tax. The modifications to the electric vehicle credit
and the alternative minimum tax would be effective for
taxable years beginning after December 31, 1996. In general,
the remaining provisions would be effective for property
placed in service after the date of enactment.
For the purpose of preparing a revenue estimate for
sections 2 through 5 of your draft bill, we have assumed that
the bill will be enacted on October 1, 1996. The following is
a revenue estimate for sections 2 through 5 of the bill:
FISCAL YEARS
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Item 1997 1998 1999 2000 2001 2002 1997-2001 1997-2006
----------------------------------------------------------------------------------------------------------------
Sections 2 through 5 of the Clean Fuel Vehicle
Stimulus Act................................... -2 -3 -3 -4 -4 -3 -15 -22
----------------------------------------------------------------------------------------------------------------
Note: Details may not add to totals due to rounding.
I hope this information is helpful to you. If we can be of
further assistance in this matter, please let me know.
Sincerely,
Kenneth J. Kies.
____________________