Vehicle Energy Performance Act of 2025
Sponsored By: Representative Casten
Introduced
Summary
This bill would shift incentives to boost vehicle energy efficiency by creating a refundable credit for new high energy performance cars and a fee on low performance models. It also updates how fuel economy is measured and labeled for electric dual‑fuel vehicles and requires manufacturers and agencies to publish and report energy performance data.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Up to $5,000 rebate for efficient cars
If enacted, you could get a refundable credit up to $5,000 for a new high‑energy‑performance car or light truck. The credit would scale by how much the car beats the prior model year’s median, up to the model year’s best. It would apply to vehicles from manufacturers for model year 2027 and later, one credit per VIN, with original use starting with you. You could transfer the refundable part to the dealer if the window sticker shows the credit and the price is cut by the full amount. Treasury would publish the median and best by December 1 each year (first in 2026), based on manufacturer reports due November 1; dollar amounts would be inflation‑adjusted after 2027.
New fee on low-efficiency vehicles
If enacted, manufacturers would owe a per‑car fee on low‑energy‑performance models starting with model year 2029. The fee would equal $5,000 times how far the car falls below the prior year’s median, scaled to the gap between the best and the median. Heavy vehicles over 8,500 pounds deemed commercial, ambulances, police, and other emergency vehicles would be exempt. The $5,000 amount would be indexed for inflation after 2029.
Clearer fuel and tax info on car labels
If enacted, fuel‑economy labels for gas/electric cars would show mileage on alternative fuel and a multi‑day mixed‑fuel average. The agency would set and update the real‑world formula for how much each fuel is used, within 3 years and then every 3 years. These label changes would apply to model year 2027 and later. New car window stickers would also show the vehicle‑energy tax credit amount for that sale. The sticker change would take effect upon enactment.
Sponsors & CoSponsors
Sponsor
Casten
IL • D
Cosponsors
Rep. Matsui, Doris O. [D-CA-7]
CA • D
Sponsored 2/13/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov