Hybrids get bigger break in the States

US Treasury Secretary John Snow announced the tax credit while visiting car plants in Detroit, the hub of America’s vehicle manufacturing industry.

The credit will and comes as part of the Energy Policy Act 2005 and could be as much as US$3,400 (£1,920) for drivers buying the cleanest and most fuel-efficient vehicles.

“The President understands how much the cost of energy impacts the budgets of American families and of the employers who create essential jobs,” Snow told reporters.

“That’s why he fought so hard for last year’s historic energy bill – legislation which provided support for new energy-efficient technologies, like hybrid vehicles, so that so that every American can enjoy better energy security at lower costs.

“The development and use of hybrid vehicles is a key step toward reducing gasoline consumption, emissions of air pollutants and greenhouse gas emissions.

“I commend the manufacturers who are making these energy-efficient and environment-friendly vehicles and hope that the President’s energy bill proves to be an important step in their rising prominence on American roads.

The guidance also covers fuel cell vehicles, larger hybrid lorries and other alternative fuels.

It establishes the process manufacturers will use to certify the amount of credit the purchaser of the vehicle can claim and offers certainty to those who buy the vehicles.

“This is good news for those consumers because they are also taxpayers who seek simpler, fairer tax filing,” said Snow.

“And it is good news for manufacturers who can now offer reassurance to customers on the ease of the tax rules.”

By Sam Bond