Environmental Protection Agency: Gas Guzzler Tax

Manufacturers of new cars that fail to meet the minimum fuel
economy level of 22.5 miles per gallon (mpg) have to pay a “Gas
Guzzler Tax.”

The tax is intended to discourage the production and
purchase of fuel inefficient vehicles. This fact sheet explains what the
Gas Guzzler Tax is and how it is calculated.

On this page:


Overview

Congress established Gas Guzzler Tax provisions in the Energy Tax Act of 1978 to discourage the production and purchase of fuel-inefficient vehicles. For more information, see:

Program Overview: Gas Guzzler Tax (PDF) (4 pp, 176K, EPA 420-F-12-068, September 2012)

What Vehicles are Subject to the Gas Guzzler Tax?

The Gas Guzzler Tax is assessed on new cars that do not meet required fuel economy levels. These taxes apply only to passenger cars. Trucks, minivans, and sport utility vehicles (SUV) are not covered because these vehicle types were not widely available in 1978 and were rarely used for non-commercial purposes.

Vehicles subject by model year (MY):

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Who Collects and Complies with the Gas Guzzler Tax?

The Internal Revenue Service (IRS) is responsible for administering the Gas Guzzler Program and collecting the taxes from car manufacturers or importers. The amount of tax is posted on the window stickers of new cars — the lower the fuel economy, the higher the tax.

IRS Compliance Forms and Payment Obligations

EPA Regulations for Compliance with Gas Guzzler Tax

For your convenience, a link to the electronic Code of Federal Regulations is provided below.


Science Topics
Atmospheric Sciences, Fossil Fuels, Pollution
Social Studies Topics
Government and Political Science
Middle School
6th Grade, 7th Grade, 8th Grade
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Program Overview: Gas Guzzler Tax (PDF)

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