Bennett, a Republican, and Oregon Democratic Sen. Ron Wyden unveiled legislation Monday to offer a tax break of between $630 and $1,860 for consumers buying new, fuel-efficient vehicles as motivation to wean the nation off its oil dependence. The tax break - which they say also could be used as a cash rebate on a car purchase - would be offset under the duo's plan by rolling back a tax deduction used by large oil companies for drilling and development costs.
"Being a free-market guy, I prefer incentives over mandates," Bennett said at a news conference where he parked his own hybrid Ford Escape on the lawn near the Senate office buildings.
Bennett acknowledged the legislation - dubbed the Oil Independence, Limiting Subsidies and Accelerating Vehicle Efficiency, or OILSAVE - is being introduced too late in the session to pass, but that the two senators wanted to start the debate.
Consumers already can get a tax break when purchasing hybrids. Legislation pushed by Utah's other senator, Republican Orrin Hatch, the CLEAR Act, included as part of last year's Energy Bill, offers tax deductions in the range of $400 to $2,400. It also gives tax incentives for development of hydrogen fuel-cell vehicles and stations for refueling alternative vehicles.
Bennett and Wyden said their bill goes further, allowing consumers to get a break on any fuel-efficient vehicle, even those with conventional engines. Vehicles that get 25 percent more fuel efficiency than current standards will qualify under the legislation.
The proposal, Bennett and Wyden said, would cut $6.8 billion in subsidies for oil companies while offering consumers a $1.3 billion motivation to move off of gas-guzzling vehicles.
Wyden said there has been years of "congressional gridlock" on a market-place solution for oil dependence, but that this bipartisan legislation is a simple, effective way of pushing more hybrids and vehicles with better miles to gallon ratios.
"We do this to start our nation on the road to independence," Wyden said.
Bennett, who is 6-foot, 6-inches, bought a Honda Insight in 2001, becoming the first member of Congress with a gasoline-electric vehicle. It got 53 miles to the gallon, Bennett said, but he traded it in later for the 2005 Ford Escape.
After the news conference Bennett showed off his silver Ford hybrid SUV, which still has Utah license plates. The Utah senator then backed off the lawn and drove down the sidewalk as reporters looked on.
tburr@sltrib.com
