Bill Overview
Title: Saving Americans from Vehicle Energy Costs Act
Description: This bill allows individual taxpayers a new refundable tax credit for owning or leasing a vehicle treated as a motor vehicle under the Clean Air Act and registered for highway use. The monthly amount of the credit is $300 times the number of such vehicles owned or leased by the taxpayer. Taxpayers whose adjusted gross income exceeds $200,000 ($400,000 in the case of a joint tax return) in any taxable year are not eligible for the credit. The Department of the Treasury must establish a program for advance monthly payments of the credit.
Sponsors: Rep. Horsford, Steven [D-NV-4]
Target Audience
Population: Individuals owning or leasing motor vehicles globally
Estimated Size: 113000000
- The target population is individuals who own or lease motor vehicles, specifically those treated as motor vehicles under the Clean Air Act and registered for highway use.
- To benefit, individuals must have an adjusted gross income below $200,000 for singles or $400,000 for joint filers.
- The legislation is unlikely to impact commercial vehicles since it specifies individual taxpayers.
- This legislation primarily targets Americans, as it offers a tax credit affecting U.S. income tax.
- Over 276 million vehicles are registered in the U.S., but not all are owned or leased by individuals below the specified income threshold.
Reasoning
- The policy is designed to provide financial relief to individuals who own or lease qualifying motor vehicles, which may improve the well-being of individuals within the eligible income brackets.
- However, the distribution of benefits will be limited by the income cap, potentially excluding significant numbers of high-income individuals who would otherwise be vehicle owners.
- Given that only individual taxpayers are eligible, the impact will be restricted to non-commercial vehicle owners, though it may substantially aid households with multiple personal vehicles by increasing their disposable income.
- For individuals at or below the median income levels, possessing one or more vehicles, the policy could significantly enhance financial stability and discretionary spending capacity.
- The policy's success in reaching the approximately 113 million eligible individuals in the U.S. depends on clear dissemination and uptake of eligible vehicle registrations as well as the management of advance payments.
Simulated Interviews
School Teacher (Austin, TX)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- The tax credit could make a big difference in my monthly budget, giving me more room to save for my child's future and handle other expenses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Farmer (Rural Kansas)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I think the extra financial relief offered by the credit could really help us manage costs, especially with fuel prices fluctuating.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Tech Worker (San Francisco, CA)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- This policy doesn't benefit me since I don't own a vehicle. It seems more relevant for those with traditional commuting needs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Warehouse Manager (Chicago, IL)
Age: 52 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- Having a little extra from this credit could be beneficial for my monthly expenses, especially with living costs rising.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Freelancer (Houston, TX)
Age: 37 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- The credit for my leased electric vehicle would be a helpful supplement as my income can vary month to month.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Retired (Miami, FL)
Age: 67 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- As someone on a fixed income, additional assistance from this credit helps alleviate some of the financial pressure.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Nurse (New York, NY)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 11/20
Statement of Opinion:
- This policy doesn't apply to me but it's interesting to see measures focusing on vehicle owners.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Uber Driver (Los Angeles, CA)
Age: 30 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This credit would reduce part of my lease cost, making it easier to save up for a new car.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Cafeteria Worker (Phoenix, AZ)
Age: 62 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Receiving some financial relief through this policy might make a noticeable difference in managing my monthly finances.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 3 |
| Year 20 | 3 | 2 |
Software Engineer (Seattle, WA)
Age: 25 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- Though I'm doing well financially, the credit could add extra savings or investment into my long-term goals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
Cost Estimates
Year 1: $406800000000 (Low: $250000000000, High: $500000000000)
Year 2: $406800000000 (Low: $250000000000, High: $500000000000)
Year 3: $406800000000 (Low: $250000000000, High: $500000000000)
Year 5: $406800000000 (Low: $250000000000, High: $500000000000)
Year 10: $406800000000 (Low: $250000000000, High: $500000000000)
Year 100: $406800000000 (Low: $250000000000, High: $500000000000)
Key Considerations
- The substantial cost reflects the large eligible population and high annual credit value.
- Income caps mean the credit is targeted toward the middle and lower-income groups.
- The monthly advance payment implementation by the Treasury may have significant administrative costs.