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The CLEAR ACT (Clean Efficient Automobiles Resulting from Advanced Car Technologies Act) is an effort to accelerate the development of eco-friendly automotive technologies and their assimilation into the automotive market by providing strategic tax breaks and incentives to consumers and infrastructure developers.


The purpose of the CLEAR ACT is to "promote cleaner air by reducing the consumption of petroleum and advancing alternate fuels."


The automotive technologies promoted by the CLEAR ACT are those used in fuel cell vehicles, which use compressed hydrogen gas to generate electricity to power an electric motor; hybrid electric vehicles, which use an electric motor to assist a gasoline powered engine; dedicated alternative fuel vehicles, which use alternative fuels such as natural gas, LPG, and LNG to power a combustion engine; and battery electric vehicles, which rely on an onboard rechargeable battery to power an electric motor.


Through the use of the tax incentives detailed below, the CLEAR ACT would lower the major barriers associated with acceptance of alternative fuel technologies; the higher cost of the vehicles, the lack of fueling stations providing alternative fuels, (also known as infrastructure) and the higher cost of alternative fuels.

  • A $4,000 base tax credit awarded for the purchase of a fuel cell vehicle, and an additional credit of up to $4,000; depending on the fuel economy performance.
  • A $1,000 base tax credit awarded for the purchase hybrid electric fuel vehicle, and an additional credit of up to $3,000; depending on fuel economy.
  • A $2,500 base tax credit awarded for the the purchase of a dedicated alternative fuel vehicle, and an additional credit of up to $1,500 for AFV's that achieve a Super Ultra Low Emissions rating.
  • A $4,000 base tax credit awarded for the purchase of a battery electric vehicle, and an additional credit of up to $2,000 for vehicles with extended range or payload capabilities.
  • The CLEAR ACT offers a range of credits for medium and heavy duty vehicles. Fuel cell or battery electric medium or heavy duty vehicles earn a tax credit of up to $40,000; medium or heavy alternative fuel vehicles earn a tax credit of up to $32,000; and medium or heavy hybrid electric vehicles earn a tax credit of up to $24,000.
  • A credit of 50 cents for every gallon of gas equivalent is provided to retail distributors will be provided for 6 years as an incentive.
  • In addition to the fuel credit, the CLEAR ACT provides a credit of up to $30,000 to assist with the actual costs of installing an alternative fuel site that is available to the public.

Why focus on automobiles?

The CLEAR ACT focuses primarily on promoting a responsible and secure energy policy through vehicles because alternate and advanced fuel technologies are more economical and effective than industrial or domestic options. Additionally, "transportation accounts for nearly 2/3 of all oil consumption." Use of these technologies can help reduce our overwhelming dependence on foreign oil.


Why give tax breaks?

Alternative fuel vehicles cost more than their traditional gasoline powered brethren, and tax breaks help to fill that gap. In his Senate press conference, Orrin Hatch (Republican-Utah) attributed the localized high demand for hybrids:


"I have heard one or two people question the need for incentives for hybrid vehicles... it may be true that demand for these vehicles is high in a few areas... [that] tend to have local or state incentives in place for the purchase of these vehicles. Where incentives are not in place, hybrid sales are minimal... incentives can indeed provide a market breakthrough to consumer acceptance of alternative vehicles."


You can help support cleaner air and a more responsible energy policy.


Spread the word. By linking to this page, you can help spread the word about the CLEAR ACT. For your convenience, sample code is provided below.

<a href="http://www.hybrid-car.org/clear-act-2005.html">CLEAR ACT 2005</a>


Please feel free to reproduce the information on this page as long as you directly site this page as the source of the text, and provide a link in return.


Contact your Senators. Take a few minutes to print and mail personalized letters, letting your State Senators know that you support the CLEAR ACT. Be sure to reference bill S.971. To find the mailing addresses for your state Senators, click here.


The following groups support the CLEAR ACT:

S.971 Status Updates:

  • 4/28/2005 - Referred to Senate committee. Status: Read twice and referred to the Committee on Finance
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