York lawmaker wants tax break for hybrid vehicles

State Rep. Eugene DePasquale, D-York City, plans to introduce two bills that could make hybrid vehicles more affordable in Pennsylvania.

DePasquale said Thursday the state should provide more incentives for people to buy the cars, many of which can be driven more than 45 miles on a gallon of gas.

He said he hears complaints that many people can't afford hybrids because they're more expensive than their traditional gas-engine counterparts.

The state offers $500 rebates to people who purchase hybrids, but DePasquale's plans could more than triple that amount by doubling the hybrid rebate and elimi-
nating state sales tax on the cars.

So he said he plans to re-write and re-submit House Bill 857, which never made it out of the House Finance Committee last year.

The bill would have eliminated the 6 percent state sales tax on cars that get more than 45 miles per gallon of gas.

The new version will eliminate the state sales tax on new or used hybrids, without defining a specific gas mileage, he said. The savings on a $20,000 car would be $1,200.

DePasquale said he also plans to propose an expansion of the state's Alternative Fuel Incentive Program, which operates the Hybrid Electric Vehicle Rebate Program.

People who buy hybrid electric cars are eligible for a $500 rebate from the state, but DePasquale wants to double the amount, giving applicants a $1,000.

The rebate and the tax cut would be permanent unless legislators refuse to vote for them without

an expiration date, he said.

Why it didn't move: State Rep. Steve Nickol, R-Hanover, minority chair of the House Finance Committee, said the old House Bill 857 didn't move because of the 45-mile-per-gallon qualifier.

The federal government was planning to re-calculate fuel efficiency standards at the time, and adding a mileage parameter brought up other concerns, Nickol said.

"What about motorcycles?" he asked. "They might get higher fuel economy, but do you give them a break?"

Nickol said he would consider supporting DePasquale's bills, if there is clear language on what qualifies, if the money comes out of the current budget, and if no borrowing is necessary. And he would want the tax break to expire, he said; otherwise the state would start losing money.

He said he's also concerned there might not be enough hybrid vehicles to supply the demand.

Pandering seen: Sutliff Saturn salesman David King said hybrids are more expensive because of the demand, and a tax break could just make the market more unbalanced.

He said -- speaking as a salesman of 10 years, not as a company spokesman -- that he thinks the push for tax breaks on hybrids is just political pandering to a special interest.

The tax breaks would probably encourage more people to buy hybrids, but he would prefer to let the market forces work on their own, he said.

"When the government gets involved, I just think things get more complicated," he said.

--Reach Christina Kauffman at 505-5436 or ckauffman@yorkdispatch.com.