house resolution no.128

Reps. Witwer, Garza, Bolden, Tyrone Carter, Shannon, Pohutsky, Koleszar, Sabo, Chirkun, Cynthia Johnson, Brenda Carter, Kennedy, LaGrand, Anthony, Haadsma, Hertel, Cambensy, Kuppa, Hope, Brixie, Gay-Dagnogo and Lasinski offered the following resolution:

A resolution to urge the Congress and President of the United States to expand the manufacturer's phaseout for the Qualified Plug-In Electric Drive Motor Vehicle Tax Credit.

Whereas, The Qualified Plug-In Electric Vehicle (PEV) Tax Credit is a federal tax credit available to individuals who buy a new, qualified PEV that uses an external source of energy to recharge the battery, among other criteria. This credit reduces the cost to buyers of acquiring a new PEV by up to $7,500 depending on the vehicle's traction battery capacity and gross weight; and

Whereas, For some buyers, the PEV Tax Credit is limited because manufacturers like General Motors have sold too many qualifying vehicles. Under the Internal Revenue Code, the tax credit phases out after 200,000 qualifying vehicles are sold. Over a one-year period, the credit is reduced by 50 percent the first six months and 75 percent the second six months. This reduces demand for low emission vehicles, stunts production, and can lead to layoffs; and

Whereas, Bipartisan legislation must be enacted to extend the PEV Tax Credit. Legislation like Senator Stabenow's Driving America Forward Act would add 400,000 vehicles per manufacturer and allow buyers to be eligible for a slightly smaller, one-time tax credit of $7,000. This would allow manufactures like General Motors to continue their domestic production operations at their current levels and make PEV models more accessible to everyday Americans; now, therefore, be it

Resolved by the House of Representatives, That we urge the Congress and President of the United States to expand the manufacturer's phaseout for the Qualified Plug-In Electric Drive Motor Vehicle Tax Credit; and be it further

Resolved, That copies of this resolution be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, and the members of the Michigan congressional delegation.