WASHINGTON, D.C. (Dec. 19, 2007) — After making a number of trips between the House and Senate, the Energy Independence and Security Act of 2007 was signed this morning by President Bush but absent were key tax incentives sought by the school bus industry for alternate energy vehicles.

Missing are incentives that would have given consumers a tax credit for new qualified plug-in electric drive motor vehicles. The prospect of this tax break had some in the industry enthused about the benefits to their clients.

“We are excited over the benefit this bill provides customers who are interested in purchasing plug-in hybrid electric school buses,” said David Hillman, marketing director for IC Corp, after the bill was initially passed by the House on Dec. 6. “There is also a Plug-in Electric Drive Vehicle Program that will provide competitive grants to encourage the use of plug-in electric drive vehicles with $90 million a year for over four years 2008-2012.”

According to Jeff Clarke from NGV America, most of the alternative tax incentives were removed in the Senate version as a result of the associated costs and the fact that this would have been paid for with a controversial repeal of tax breaks for oil companies. Clarke noted Senate Majority Leader Harry Reid has indicated he plans on reintroducing those tax incentives for alternative fuels in a new tax bill next year.

The new law still has been lauded by some as a major step forward in the country’s effort to heal some of the effects of global warming and ease our dependence on foreign oil. It requires a 40 percent increase in automotive fuel efficiency to 35 mpg by the year 2020. It also calls for a boost in the production of biofuels to 36 billion gallons a year by 2022.

“We applaud the bill,” said Jenna Higgins Rose, director of communications for the National Biodiesel Board. “Among its many provisions, the legislation expands the Renewable Fuels Standard in a manner that will significantly increase the use of biodiesel in the United States.”