Vehicle Energy Performance Act of 2025

This bill creates a tax credit of up to $5,000 for people who buy a new car or light truck (2027 model year or later) that gets better-than-average fuel efficiency compared to other vehicles from the prior model year. To qualify, the vehicle must be a passenger car or light truck that performs above the median in miles per gallon or its equivalent. The bill also changes how the "gas guzzler tax" works — instead of taxing vehicles that get less than 22.5 miles per gallon, the tax would be based on how a vehicle's energy performance compares to the median and best performance of vehicles from the prior model year. The Department of the Treasury would be required to publish information about median and best vehicle energy performance each model year based on data from manufacturers.

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