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Tax Credits for Flexible Fuel Vehicle Production and Restoration of Incentives

This act introduces tax credits for car manufacturers producing vehicles capable of running on alternative fuels like methanol or ethanol. The goal is to encourage the production of more environmentally friendly cars, potentially affecting their availability and prices for citizens. Additionally, it restores and modifies previous incentives for dual-fueled vehicles.
Key points
Car manufacturers will receive a $200 tax credit for each flexible fuel vehicle (e.g., methanol, ethanol) produced and sold.
The credit aims to encourage the production of vehicles less reliant on traditional gasoline, potentially increasing their market availability.
Provisions for incentives for dual-fueled vehicle manufacturers, which expired in 2019, are restored and modified.
The act will not apply to vehicles produced for model years ending after 2031.
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Additional Information
Clean Fuels Vehicle Act of 2021
Print number: S 2267
Sponsor: Sen. Klobuchar, Amy [D-MN]
Process start date: 2021-06-24