HR 1293

The Vehicle Energy Performance Act of 2025 aims to encourage the purchase of more fuel-efficient vehicles by offering a tax credit and modifying the gas guzzler tax. It establishes a refundable tax credit of up to $5,000 for new qualified high energy performance motor vehicles, based on their energy performance compared to the median and best vehicles of the prior model year. The bill also adjusts the gas guzzler excise tax to reflect vehicle energy performance. Finally, it introduces a fee for low-energy performance vehicles and updates fuel economy labeling requirements for dual-fueled automobiles.