Hatch pushes tax break for alternative fuels

WASHINGTON — With gas prices hovering between outrageous and incredible, it's no wonder there's a growing buzz surrounding hybrid vehicles — those gasoline-electric combos that auto makers can't seem to make fast enough.

Now, Sen. Orrin Hatch, R-Utah, wants to turn the buzz into a roar through legislation that would provide tax incentives to those who purchase more-expensive alternative fuel cars, as well as to fueling stations offering alternative fuels like natural gas, propane and methanol.

"We are trying to provide that breakthrough on a national scale," Hatch said this past weekat a press conference unveiling the reintroduction of his CLEAR Act.

Hatch, who drives a gas-guzzling Lincoln Town Car, admitted that public demand for hybrid vehicles is high in some areas, but usually only where state or local tax incentives are already in place.

"Where incentives are not in place, hybrid sales are minimal," he said. "This demonstrates that incentives can indeed provide a market breakthrough to consumer acceptance."

Officially known as the Clean Efficient Automobiles Resulting from Advanced Car Technologies Act, the legislation is three-pronged: It would provide a tax credit to consumers who purchase alternative-fuel and advanced-technology vehicles, tax credits for the purchase of alternative fuels and tax deductions for business purchases of necessary equipment and a tax credit for installing it.

The amount of the tax incentive is based on the performance of the vehicle in terms of improved fuel economy.

The approach is designed to offset the higher cost of the vehicles and the fuel, making it more economically attractive to consumers.

Currently, hybrid vehicles account for less than one-half of one percent of the vehicles on the road, and Hatch is convinced the incentives will boost that percentage much higher, while making the country more energy independent.

Hatch is linking his legislation to President Bush's energy policy. This past week, Bush called on the nation to "develop new ways to power our automobiles" and talked about investing $2.5 billion over 10 years in tax incentives for the purchase of hybrid vehicles.

"As for these policies the president addressed, the CLEAR Act is exactly where the rubber meets the road," said Hatch, who was flanked by supporters representing Honda, Toyota and Ford, and from several of the nation's top environmental and alternative fuel groups.