Gore Offers Tax Credits to Energy-Conscious - Los Angeles Times
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Gore Offers Tax Credits to Energy-Conscious

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TIMES STAFF WRITER

Vice President Al Gore beefed up his ambitious energy proposal by another $46 billion on Wednesday, saying he would give tax credits to consumers who purchase hybrid cars or energy-efficient homes.

Gore’s plan urges families to buy new vehicles that run on little--or no--gasoline and upgrade the energy-efficiency of their homes. Consumers who buy hybrid vehicles stand to get a $5,000 tax credit; if the car is electric or propelled by fuel cells, the credit would rise to $6,000.

“There’s no doubt that we can save energy and reduce pollution dramatically by giving tax cuts to Americans who want to take advantage of them with energy savings and conservation,†he said.

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Gore made his announcement after touring the muddy construction site of a three-bedroom house in the Black Lick suburb, where Joshua Homes, a building firm, specializes in energy-efficient houses. The likely Democratic nominee for president strolled through the framed and partially sided house, calling it “a beautiful place,†and chatted with camera-toting neighbors who gathered on the sidewalks outside.

The home, which sold for about $163,000, features new energy-saving technologies that make it 30% more efficient than most homes. Under Gore’s proposal, Americans who buy such homes or improve the energy-efficiency of their current homes would be eligible for a $2,000 tax credit.

If approved by Congress, the plan would also:

* Give a $4,000 tax credit for the purchase of heavy pickup trucks, $5,000 for delivery trucks and $10,000 to $15,000 for 18-wheelers, provided the vehicles meet certain efficiency guidelines.

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* Increase funding to help low-income families make their homes more energy-efficient and save money. Improvements would include upgrading heating and cooling systems and installing insulation.

* Give a tax credit to cover 20% of the cost of purchasing solar water heating systems and rooftop panels. The proposal would double the current tax credit given for such investments.

* Give a tax credit to cover 20% of the cost of environmentally friendly appliances, such as water heaters. This proposal would cost $600 million over 10 years.

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* Allow homeowners to retrofit heating, water and cooling systems for a tax credit of $1,000.

“I want to get rid of the threat of pollution that we shouldn’t pass on to the next generation,†Gore told the small circle of new homeowners and prospective buyers at the Joshua Homes site. “And that means making it a priority to use the new energy conservation and environmentally efficient techniques that are incorporated into this home.â€

Gore this week is promoting a new National Energy Security and Environment Trust Fund, which he announced Tuesday in Philadelphia, that would provide tax breaks and other financial incentives for businesses and families to develop new technologies that stimulate economic growth and clean up the nation’s air and water.

The proposals unveiled Wednesday would cost $46 billion over 10 years, bringing the total tab of Gore’s energy plan to more than $121 billion so far. During a stop in Chicago today, he will detail another part of the plan that gives similar tax incentives for cities to establish more efficient transportation methods, such as high-speed and light-rail systems.

Republicans have chided Gore for having a weak energy plan and blame the Clinton administration for exorbitant gasoline costs in the Midwest, where pump prices have crept up to $2.30 per gallon.

Gore’s Republican opponent, Texas Gov. George W. Bush, brought up gas prices again Wednesday as he accused Gore of bowing to the interests of the oil industry--a charge the vice president repeatedly has leveled at Bush.

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Bush said that, with prices at the pump, Gore should not have called for extending a 5-year-old moratorium on royalties businesses would pay to the federal government for natural gas exploration in the Gulf of Mexico.

Bush, who once worked in the oil business, said Gore “is giving major oil companies a huge tax break.â€

The Gore campaign called the plan an incentive to reduce the nation’s dependence on foreign producers. “I think he’s confused because that [the proposal] applies to natural gas and not oil,’ Gore said.

While in Columbus, Gore veered off the campaign trail briefly to attend the annual White House Community Empowerment Conference, having long been involved in the administration effort to drive investment into inner cities through empowerment zones and other initiatives.

In his speech, Gore announced several federal grants to urban neighborhood projects around the country. The announcement was similar to Gore’s “Technologies for Tomorrow Challenge†unveiled Tuesday, which would encourage business to come up with the most progressive energy-saving ideas at the least cost.

Under that plan, communities would compete for federal financial incentives--yet to be detailed--by devising ways to cut pollution and create jobs.

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With less than a week to go on a “progress and prosperity†campaign spin, Gore left Ohio on Wednesday for a stopover in New York, where he brought in about $750,000 for the Democratic National Committee at two separate fund-raising dinners.

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Times staff writer Richard T. Cooper contributed to this story.

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