Energy Policy Act of 2005 & Transportation Act of 2005

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On July 29, 2005, Congress passed the Energy Policy Act of 2005 (H.R. 6) and the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2005 (H.R. 3). President Bush signed the first act into law on August 8, 2005 and the second act into law on August 10, 2005.


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These two tax acts have been incorporated into the Internal Revenue Code residing on the TaxAlmanac website. TaxAlmanac is the only known free website to feature a complete, updated tax code.

Highlights of the Energy Policy Act of 2005

  • Offers consumers tax credits for making energy efficiency improvements in their homes
  • Tax credits are available for highly efficient central air conditioners, heat pumps, and water heaters, as well as to upgrade thermostats, install exterior windows, and stop energy waste
  • Offers tax incentives for new transmission construction, and by encouraging the development of new technologies, such as superconducting power lines, to make the grid more efficient
  • Promotes the use of renewable energy sources with tax credits for wind, solar, and biomass energy, including the first-ever tax credit for residential solar energy systems
  • Provides up to $3,400 per vehicle in tax credits to consumers for purchase of these cars, based on their fuel savings potential

Highlights of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2005

  • Modifies gas guzzler tax
  • Exclusion for tractors with a gross vehicle weight of 19,500 pounds of less from Federal excise tax on heavy trucks and trailers
  • Excise tax credit on imposition of tax on alternative fuels
  • Repeals harbor maintenance tax on exports
  • Caps excise tax on certain fishing equipment
  • Clarifies excise tax exemptions for agricultural aerial applications and exempt certain fixed-wing aircraft engaged in forestry operations
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