The high cost of advanced technology, fuel-efficient vehicles is a key barrier to their entry into the market place. Financial incentives have proven to be one of the more effective ways to encourage consumers to purchase these vehicles and enable their complete penetration into the U.S.vehicle market.

To quicken the integration of efficient vehicles in the U.S. market, the federal government introduced tax credits for hybrid, electric and alternative fuel light- and heavy duty vehicles in the Energy Policy Act of 2005. ACEEE supports these credits and other policies to encourage the purchase of environmentally-friendly vehicles, including feebates that align consumer incentives with manufacturer requirements to increase fuel economy.