The American Trucking Associations announced Tuesday that it endorses the proposed tax credit for purchasing idling reduction equipment for commercial vehicles introduced in the U.S. House of Representatives
by Kay Granger, R-Texas, as part of industrywide efforts to reduce air pollution and fuel consumption.
ATA also called for additional members of Congress to co-sponsor her bill, H.R. 4672.
Known as the "Idle Reduction Tax Act of 2006," the bill proposes a 25 percent tax credit, up to $1,000 for each idling reduction device purchased by fleets. The purchased equipment is designed to service essential truck functions, including heat or air conditioning, that normally are powered by the truck's main engine while it is stationary. The credit would be available to all trucking companies.
The proposed tax credit comes as the trucking industry prepares to introduce new trucks into their fleets with lower-emission engines mandated by the U.S. Environmental Protection Agency beginning in 2007. These new engines will result in unprecedented emission reductions of particulate matter and smog-forming nitrogen oxide emissions by 90 percent to 95 percent, respectively. Financial incentives under Representative Granger's bill will advance the integration of idling reduction devices into fleet operations and result in the trucking industry curbing diesel emissions even further.
Use of idle reduction technologies not only conserve fuel, resulting in trucking companies saving thousands of dollars each year, but also reduce the nation's dependence on foreign oil sources. EPA estimates that one truck consumes eight gallons of diesel fuel for every 10 hours of idling a main engine. This averages out to be 2,400 gallons of diesel fuel used to idle a single truck's main engine each year. When the trucking industry spends less on fuel, it has more money for capital investments, including buying new equipment or hiring additional employees.