To encourage the availability and use of motor vehicles that have improved fuel efficiency, in order to reduce the need to import oil into the United States.

H.R. 1356 aims to reduce U.S. dependence on imported oil by providing financial incentives for the production and purchase of fuel-efficient vehicles. For consumers, the bill would offer a tax credit equal to 25 percent of the cost of a new vehicle that meets specific high-efficiency standards. For manufacturers, it provides a $2,000 tax credit for every fuel-efficient vehicle produced in the United States and offers up to $1 billion in federal loan guarantees to help companies convert their factories to produce vehicles that achieve at least 40 miles per gallon. Additionally, the bill would permanently extend and increase tax credits for businesses conducting research and development.