Gore proposes subsidies for 'green' cars, houses
Copyright 2000, Reuters
June 28, 2000
By Randall Mikkelsen
Democratic presidential candidate Al Gore today proposed $48.3 billion in subsidies for purchases of energy-efficient products, including a credit of up to $6,000 for cars that do not burn gasoline.
The vice president said consumers needed "an offer they can't refuse" to jump-start green technology.
"There is no doubt that we can save on energy and thus reduce pollution dramatically by giving these tax cuts to Americans who want to take advantage of them," Gore said.
He was speaking outside a house under construction in a suburb of Columbus, Ohio, to a small group of new and prospective homeowners.
Gore's 10-year plan includes $19.1 billion in credits and assistance to make homes more energy-efficient, including a tax credit of up to $2,000 for buying homes that meet high energy-efficiency standards, and credits for equipping small businesses and homes with solar-energy technology.
"If all of our buildings, residential and commercial, shifted to these kinds of efficient, sensible technologies, we could dramatically reduce pollution in our country and generate savings for the homeowners and businesses, but it's a matter of getting people who can't afford the up-front costs over the hurdles by giving them a tax credit, to make it an offer they can't refuse," Gore said.
The vehicle credits, expected to cost $12 billion over 10 years, would give consumers a $5,000 tax credit to buy hybrid electric and gas-powered cars and sport utility vehicles and up to $6,000 for electric or fuel-cell-powered cars.
He would provide separate tax credits for the purchase of energy-efficient heavy pickup trucks, delivery trucks and 18-wheel heavy trucks.
"There is one car in the showroom, in the auto show this year, that gets more than 100 miles to the gallon and it's not one of those little, tiny cars either. It's a good family sized car," Gore said. "With the tax credit that I'm offering today, you'll be able to purchase it at roughly the same price as the other comparable cars that are on the market today."
Staking out campaign battleground
Today's proposal was the second of a three-part energy and environment platform Gore is unveiling this week in an effort to flesh out his credentials as an environmentalist and stake out a campaign battleground against his Republican rival, Texas Gov. George W. Bush.
On Tuesday, Gore proposed $75 billion in tax credits and other incentives to encourage greater efficiencies in power production.
On Thursday, Gore is expected to roll out his proposals to help cities encourage more environmentally friendly transportation systems.
The programs are to be funded out of anticipated budget surpluses.
Other elements of the plan for consumers announced Wednesday include:
A tax credit of 20 percent for the purchase of energy-efficient building equipment such as heat pumps and hot water heaters.
Increasing an existing 10 percent investment tax credit for solar energy systems in homes or businesses. The credit would be raised to 20 percent, up to a maximum of $1,000, for solar water-heating systems and $2,000 percent for rooftop systems that convert solar energy to electricity.
Subsidizing consumers who choose to buy electric power from plants using clean energy sources, at an estimated cost of $5 billion over 10 years.
Expanding an aid program to help low-income families improve insulation, heating and cooling systems in their houses.
The campaign of Gore's Republican rival, George W. Bush, has denounced Gore's initiative as a hastily prepared and ill-conceived response to this year's spike in retail gasoline prices, a growing election-year issue for which both campaigns blame each other.