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NEW POLICY SOLUTIONS:
MANAUFACTURER INCENTIVES
Incentives that encourage increased investments in the manufacture of advanced fuel-efficient technologies could help to accelerate the introduction of fuel-efficient vehicles into the marketplace, while building capacity for the production of these technologies here in the U.S. Such incentives would help to preserve and expand U.S. employment in unionized workplaces as the market for these technologies grows.
A study by the University of Michigan Office for the Study of Automotive Transportation (OSAT) found that a tax credit for investments in U.S. facilities that produce hybrid and diesel vehicles and their components would create over 59,000 jobs and more than pay for itself through increased federal, state and local tax revenues. This approach would also lower the cost of hybrid and diesel vehicles for consumers, improve fuel economy and the environment and reduce our dependence on foreign oil. Download full study or factsheet.
Other financial incentives for the retooling of auto plants, such as loan guarantees, grants, and legacy health care cost relief, have also been suggested. Many proposals have been introduced in Congress. Some of them are linked to increases in corporate average fuel economy standards.
IN THE SENATE
- The Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007 - The Senate passed this energy bill on June 21. It includes significant increases in fuel economy, as well as substantial incentives for companies to invest in advanced fuel-efficient technologies. Learn more
- Alternative Motor Vehicle Facility Act - This proposal would provide bonds to finance the reconstruction of facilities to produce advanced technology vehicles. Learn more
IN THE HOUSE
- Terry/Hill CAFE Bill - This proposal requires a minimum increase in fuel economy standards, and uses fees from non-compliance to fund re-tooling of auto plants. Learn more
- Fuel Economy Reform Act - This bill sets significant increases in fuel economy, and requires that a minimum number of fuel-efficient vehicles be produced in the U.S. It does not currently provide any funding mechanism for automakers. Learn more
- Dingell/Boucher Discussion Draft on Energy Policy - This proposal aims to takes initial steps to address greenhouse gas emissions from the transportation sector, and moves towards an eventual economy-wide greenhouse gas control program. Learn more
- PROGRESS Act (H.R.1300) - This bill would strengthen national security and promote energy independence by improving vehicle technology and efficiency, increasing the distribution of alternative fuels, and expanding access to public transit. Learn more
- American Automobile Industry Promotion Act of 2007 (H.R.1055) - This bill would increase U.S. investment in the development of advanced lithium ion batteries, a product necessary to operate electric vehicles and produce the next generation of hybrids known as plug-in hybrids. Learn more
- Loan Guaranetee Act (H.R.1215) - This bill would provide loan guarantees for the production of fuel-efficient vehicles. Learn more
Similar tax policies could also be implemented in key automotive production states, further helping to reduce job and tax revenue losses in those states.
RELATED RESOURCES
- UAW Press Release - UAW Welcomes Support for Proposal to Encourage Production of Advanced Technologies in U. S.
- Solidarity Magazine - Cleaner & Greener: UAW pushes tax incentive to produce advanced technologies in the U.S.
- UAW - Marshall Plan for U.S. Automotive Industry