''The National Energy Act: Energy Tax Act of 1978 (US), or the Gas Guzzler Tax, imposed set tax penalties on car manufacturers who fail to meet the minimum fuel economy level of 22.5 mpg-US (10.5 L/100 km; 27.0 mpg-imp) in the United States. This does not include minivans, sport utility vehicles or pick-up trucks. It is intended to discourage the production and purchase of fuel inefficient vehicles. In determining the tax, the fuel economy figures used are different from the fuel economy values provided in the Fuel Economy Guide. This tax is collected by the IRS and paid by the manufacturer or importer after production has ended for the model year. It is based on the total number of gas guzzler vehicles which were introduced into commerce in the United States. The amount of the tax paid by manufacturer is displayed on the vehicle's fuel economy label on the window sticker of new cars.''
''Combined Fuel Economy
The Gas Guzzler Tax is based on combined fuel economy, which is based on a 55%/45% highway/city fuel economy estimate from the Environmental Protection Agency test.
How Much is the Gas Guzzler Tax?
Vehicles that get at least 22.5 mpg (combined) don't have to pay the Gas Guzzler Tax. The Tax rate goes from $1,000 for vehicles that get at least 21.5 mpg (combined), but less than 22.5 mpg (combined) all the way up to $7,700 for vehicles that get less than 12.5 mpg (combined).
Are SUVs Subject to the Gas Guzzler Tax?
SUVs are not subject to the Gas Guzzler Tax. When the law was first enacted in 1978, SUVs and light trucks represented less than 25% of the vehicles on the road, and were considered primarily work vehicles. Over the last three decades, the use of SUVs has substantially changed, but the law hasn't. Here's a quote from Senate Report 109-082 "Highway Reauthorization and Excise Tax Simplification Act of 2005":''
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