Tax credits for 'green' cars hit barrier

A bill that would create tax credits for environmentally friendly cars buyers hit an obstacle Thursday — concerns over the credits coming out education funding.

The House Revenue and Taxation Committee voted to adjourn before taking a vote on HB122, sponsored by Rep. Roz McGee, D-Salt Lake.

The bill is part of a larger package of energy policy bills being touted by a bipartisan group of senators and representatives.

HB122 proposes tax credits of up to $1,000 for carbuyers and $5,000 for larger vehicles if they purchase cleaner, more fuel-efficient vehicles. The credit would also apply to those who convert their current cars to meet higher environmental standards.

McGee pointed to Salt Lake Valley's air quality as partial rationale for her bill. "I don't want us to have to wait for the hand of God to clear the inversion in the valleys," she said.

But Rep. Carl Wimmer, R-Herriman, told McGee he had problems with the potential financial impact of HB122.

McGee said she also worried about the bill's cost, which is why she knocked the standard-size car credit from $2,000 to $1,000.

The bill's fiscal note stated that the credits could cost the state nearly $200,000 starting in 2009. According to the note, the money would come from the Uniform School Fund.

"Is it wise to take from the Uniform School Fund?" Wimmer asked Mcgee. "Is there any other way to do this?"

"I think it is a tradeoff," McGee answered. "I think it's an important thing to do."

Before the committee could vote or hear public testimony, Rep. Greg Hughes, R-Draper, made a motion to adjourn. With the 10 a.m. House floor session approaching, the committee supported Hughes' motion 6-5.

It is possible for the committee to revisit McGee's bill this legislative session.

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