Oil Independence, Limiting Subsidies, and Accelerating Vehicle Efficiency Act (OILSAVE)

On May 20, 2009, Senator Wyden introduced legislation (S.1093) that seeks to increase the demand for fuel efficient vehicles by establishing a tax credit to make purchasing a new fuel-efficient vehicle affordable for more Americans. The technology-neutral tax credit would be based on the vehicle’s overall fuel efficiency, with credits going to vehicles with at least 10 percent greater fuel economy than the national average for each model year. The credit amount, which starts at $900, increases by $100 for every additional mile-per-gallon in fuel efficiency up to $2,500. The legislation also increases the gas guzzler tax as well as penalties for non-compliance by vehicle manufacturers with the Corporate Average Fuel Economy (CAFE) standards. The legislation also includes an investment tax credit for equipment added to new or existing heavy trucks and other vehicles that can be verified by the EPA to save fuel such as anti-idle devices or aerodynamic fairings for truck cabs and trailers.