Rep. Bruce Braley introduces the CARS Act

House Populist Caucus leader Bruce Braley has an innovative proposal to stimulate the economy and help the environment. Braley introduced legislation today that would allow consumers to trade in their old car for a new and more fuel-efficient vehicle made in America.

Washington, DC - Today, Rep. Bruce Braley (D-Iowa) announced that he introduced the CARS Act, which provides incentives for consumers to purchase new, fuel-efficient cars and trucks, helping boost our economy and save American jobs.

Braley introduced the Consumer Assistance to Recycle and Save (CARS) Act with Rep. Betty Sutton (D-Ohio) and Rep. Candice Miller (R-Michigan). The CARS Act would take older, gas-guzzling vehicles off the road and spur new car sales by providing consumers with a $3,000 to $7,500 incentive to buy more fuel-efficient cars, trucks or use mass transit. The bill provides graduated incentives based on greater fuel efficiency.

"The CARS Act will save American jobs, boost our economy, and decrease our dependence on foreign oil," Braley said. "This bill will achieve many goals: consumers will get a break to purchase more fuel-efficient vehicles; we will all benefit from a reduction of greenhouse gases; and we will save American jobs by jumpstarting the auto industry. We can get our country moving in the right direction while helping American manufacturers and investing new, fuel-efficient cars and trucks."

New car purchases that qualify for this incentive must achieve a minimum of 27 miles per gallon on highways, while new trucks must achieve a minimum of 24 mpg for highway driving. The CARS Act provides the option to trade in used cars for a voucher towards the purchase of a new, more fuel-efficient car, or for a mass transit voucher.

A similar concept was recently implemented in Germany, where sales of new vehicles increased over 20 percent in February 2009, versus the same month a year ago.