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House OKs tax relief for hybrid-electric vehicles
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Posted on Aug 26 2005
The House of Representatives approved Friday a proposal to grant tax relief on the sale and purchase of the so-called energy-saving and environment-friendly hybrid electric vehicles or HEVs in the CNMI.
The House passed House Bill 14-373, authored by Rep. Clyde Norita, which aims to reward car dealers who sell HEVs and people who buy these type of vehicles.
Norita said HEVs combine gasoline engines and electric motors for a much more fuel-efficient vehicle. He said these types of vehicle run 30 to 60 miles on a gallon of fuel.
For instance, he said the Toyota Prius runs 60 miles on a gallon of fuel while the Toyota Highlander Hybrid runs 38 miles per gallon. The Honda Civic Hybrid can run up to 51 miles per gallon of fuel.
“The benefits of HEVs are plentiful. It is much more friendly to the environment as a whole. In addition, it can save the owners of HEVs hundreds, even thousands of dollars a year in fuel cost,” Norita said.
The lawmaker said that upon purchase of an HEV, people can save a total of $3,500 worth of taxes.
He said that right now, the Internal Revenue Service, through Public Law 108-311, allows taxpayers who purchase new HEVs to deduct up to $2,000. But a sunset provision exists and that deduction may only be taken by consumers who purchase such vehicles for personal use.
He said his bill offers tax incentives to both car dealers and buyers.
He said sellers shall receive tax relief in the form of excise tax, beautification tax, and sales tax while the buyers’ tax upon purchase of new HEVs shall be waived.
Norita said this kind of legislation is timely in view of the rising costs of fuel worldwide.
H.B. 14-373 now goes to the Senate for action. (Liberty Dones)
