LANSING – While much of the legislative focus these days is given to an energy package that deals with electric customer choice and a renewable portfolio standard, there is legislation pending in committees that would provide tax incentives for consumers to purchase hybrid vehicles.

The measures (HB 5603 , HB 6028 , HB 6384 and SB 148 ) would provide incentives ranging from an income tax credit up to $1,000 for people who purchased a hybrid vehicle to a sales tax exemption on the difference between the purchase price of a hybrid to that of a traditional fuel vehicle.

Rep. Rick Jones (R-Grand Ledge), one of the bill sponsors, argues that with gas prices still hanging around the $4 mark, the legislation would help people buy more fuel efficient cars while at the same time stimulating the state’s high-tech economy.

Mr. Jones’ legislation was introduced this month, but the other measures have not been taken up since their introduction earlier this session. The measures have bi-partisan sponsorship in the House.

Michigan has several laws on the books providing tax incentives for research and development of hybrid and alternative fuel vehicles, as well as grants that allow gas stations to install systems that pump E85 and biodiesel blends, but nothing in regards to the purchasing of such transportation.

According to the U.S. Department of Energy, more than a dozen states offer tax credits, exemptions or rebates for the purchase of a hybrid or vehicle powered by alternative fuels. The federal government provides a tax credit of $250-$3,400 for purchasing hybrid vehicles through 2010, but that credit is dependant on the car model and how many have been sold throughout the United States.

James Clift, policy director for the Michigan Environmental Council, said with the Big Three automakers manufacturing more of these kinds of vehicles, the state should provide incentives for people to buy them.

He said the next step would be to identify the barriers to plug-in vehicle technologies and making sure people re-charge their cars overnight and not during peak use times during the day.

“We think this is where the market is going,” he said of alternative fueled vehicles, adding that Big Three automakers may have been reluctant in the past to embrace manufacturing these vehicles but that has changed.

“Michigan residents who purchase a hybrid Saturn Vue or the upcoming Chevy Volt, for example, will help strengthen and create Michigan jobs,” Jones said.

As for the cost of providing these tax incentives, a spokesperson for the Department of Treasury said they had not estimated the revenue affect of the legislation.

Rep. Michael Sak (D-Grand Rapids), sponsor of one of the income tax measures, said he was told the effect on state revenue could be about $6 to $10 million, but those estimates came when gas was below $3 and he expected there is more interest in purchasing hybrid vehicles given the large spike in pump prices. Mr. Jones too said the revenue impact would be minor and he would be willing to pare it back in the future if the cost on the state budget became significant.

According to AAA of Michigan, the research company R.L. Polk & Company found that hybrid vehicle registrations were up according to data from 2004, but still represented less than 1 percent of the 17 million vehicles sold in the United States that year. Other research indicates that more than 500,000 hybrid vehicles will be sold in the United States by 2011.

While the hybrid vehicle incentives are not part of the energy package, Mr. Sak said the measures are all part of reducing the reliance on petroleum.

“We have to start changing now,” he said.

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