Develop a tax incentive for alternatives to the automobile
Action
To reduce greenhouse gas emissions and provide citizens with more transportation alternatives at a time of rising fuel costs, the State should establish a tax credit program for households that do not own an automobile and that demonstrate their use of more energy-efficient transportation choices such as biking, walking or public transportation.
The policy of providing a tax credit or deduction to heads of households who choose not to own an automobile is intended to provide an incentive to reduce energy consumption. People who choose transportation other than the automobile generally consume less energy per capita than do people who drive — even if they're driving hybrid vehicles. The tax benefit not only can reduce energy use and traffic congestion, but also may increase the demand for housing located in mixed-use neighborhoods that are walkable or served by public transportation.
Process
The process for implementing this policy will vary from state to state, depending on the existence of energy tax credit programs. Some states already offer tax credits or deductions for the purchase of a variety of energy-saving goods. These often include hybrid vehicles, as well as efficient washing machines, dryers, and other appliances. In states with existing programs, adding the alternative transportation category may be a matter of rewriting the rule or regulation that outlines the energy-saving activities and products eligible for the tax credit. In states without existing programs, new legislation may be necessary.
