Fuel Efficient Vehicle Tax Incentive Act of 2006

H.R. 5251, the Fuel Efficient Vehicle Tax Incentive Act of 2006, proposed changes to the tax code to encourage the use of more fuel-efficient transportation. The bill would have tripled the tax deduction for depreciation that businesses can claim when purchasing alternative fuel vehicles, making it more affordable for companies to transition to greener fleets. Additionally, it sought to apply the "luxury automobile" depreciation limits to heavy sport utility vehicles (SUVs), effectively reducing the tax breaks available for larger, less fuel-efficient vehicles.