EDTA President Brian Wynne says, "Such incentives have spurred market demand for hybrids in the mainstream automotive market. Electric drive reduces our need for foreign oil and improves air quality, and this important bill rewards both consumers and businesses that use electric drive technology every day."

Washington, DC—October 4, 2004— The Electric Drive Transportation Association (EDTA) applauds passage of H.R. 1308, the "Working Families Tax Relief Act of 2004", which eliminates the 'phase-out' of a tax deduction for electric drive vehicles for 2004 and 2005, and also eliminates the phase-out deduction for clean-fuel vehicle property for 2004 and 2005. President Bush signed the bill into law earlier today.

EDTA President Brian Wynne says, "Such incentives have spurred market demand for hybrids in the mainstream automotive market. Electric drive reduces our need for foreign oil and improves air quality, and this important bill rewards both consumers and businesses that use electric drive technology every day."

'Electric drive' includes battery electric, hybrid electric and fuel cell electric vehicles, including passenger cars and trucks, buses, ground support equipment and low-speed vehicles. "Electric drive is prevalent in a variety of applications, including non and off-road duties and mass transit, as well as in the consumer segment," says Wynne. "Today's hybrids are the foundation for tomorrow's advanced technology electric drive vehicles, and tax incentives will accelerate their adoption and the associated benefits of greater energy security and cleaner air."

Under the previous law, qualified hybrid electric vehicles were eligible for a tax deduction of $2,000 in the year 2003; $1,500 in the year 2004; $1,000 in 2005, and $500 in 2006. Under the new law, qualified hybrid electrics are eligible for the full $2,000 tax deduction in 2004 and 2005; the deduction remains at $500 in 2006.

The bill also includes measures designed for the use of qualified heavy-duty battery electric and hybrid electric vehicles used by fleets and other businesses. Qualified clean-fuel vehicle property includes motor vehicles that use certain clean-burning fuels such as electricity and hydrogen. The maximum amount of the deduction is $50,000 for a truck or van with a gross vehicle weight over 26,000 pounds, or a bus with seating capacities of at least 20 adults; a deduction of $5,000 is available for a truck or van with a gross vehicle weight between 10,000 and 26,000 pounds. A $2,000 deduction is available for any other motor vehicle. The bill provides that a taxpayer who purchases a qualifying vehicle may claim 100 percent of the otherwise allowable deduction for vehicles purchased in 2004 and 2005 (there was a phase-out specification under the old law.) For vehicles purchased in 2006, the deduction remains at 25 percent of the otherwise allowable amount as under present law. The effective date for vehicles placed in service is after December 31, 2003.

EDTA is an international association representing the development, production and use of battery, hybrid and fuel cell electric drive technologies and supporting infrastructure. EDTA serves as the central source of information on all of the technical, market and policy issues surrounding the emergence of electric drive, and serves as the representative of the Americas to the World Electric Vehicle Association (WEVA). For more information about EDTA, visit www.electricdrive.org or call 202.408.0774.