Alternative Vehicle Incentive Act of 2006

The Alternative Vehicle Incentive Act of 2006 proposed an expansion of federal tax credits for consumers who purchase environmentally friendly vehicles, such as hybrids, fuel cell cars, and alternative fuel motor vehicles. Under this bill, the existing tax credit would increase by $5,000, provided the vehicle was assembled within the United States. Additionally, the legislation sought to remove the "phase-out" caps that limited how many vehicles each manufacturer could sell before the tax credits expired, potentially making these incentives available to a much larger number of car buyers.