STAFF REPORTS
Rep. Baron Hill says he will introduce two bills crafted to provide gas price relief.
The first of the two bills – the Gas Price Relief Act – would repeal the federal 18 cent per gallon gas tax. The tax would remain suspended until the national average price of gas falls below $3 for six consecutive months. To supplement the lost revenue, the bill suspends the tax incentives given to oil companies.
“This bill makes perfect sense,” Hill said in a press release Wednesday. “Until the average price of gasoline reaches $3 per gallon — still a high price but lower than it is now — oil companies would not be given tax incentives by the federal government.”
Hill will also introduce a bill to enhance tax credits for those purchasing hybrid cars. Right now, there is a hybrid tax credit for consumers. However, it is phased out according to how many hybrid cars are sold. For example, for the first 60,000 hybrid cars sold by a manufacturer, the consumer purchasing the car is given 100 percent of the tax credit. But, after 60,000 cars are sold by a manufacturer, the consumer’s tax credit falls to 50 percent and then 25 percent.
Hill’s bill would allow anyone who buys a hybrid vehicle to receive 100 percent of the tax credit.
