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The ICCT defined six scenarios for analysis: Business as Usual (reflecting current Federalprograms only, and non-implementation of the GHG Phase 2 trailer requirements). Dual Harmonization (California Advanced Clean Trucks Rule, Low-NOx Omnibus Rule w/urban buses) from model year (MY) 2025.
This revenue could be used to either cut other taxes or to avoid cuts in Federalprograms. The first win—Congress could reduce personal or corporate income tax rates, extend the payroll tax cut, maintain spending on social programs, or some combination of these options.
Under the federalprogram, buyers could get a $3,500 or $4,500 rebate, depending on how much more efficient their new car was. I think the economists have said it’s sort of a wash because it mainly just took future purchases and accelerated them. Ours would be one of the first studies to point out the downsides of the program.
The rebates are primarily targeted at medium- and heavy-duty vehicles; of the funding allocated for rebates, not more than 25% is to be used to provide rebates to qualified owners for the purchase of qualified alternative fuel vehicles that have a gross vehicle rating of not more than 8,500 pounds.
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