U.S. Department of Energy - Energy Efficiency and Renewable Energy

Vehicle Technologies Office

Fact #280: August 11, 2003
Fines and Taxes Related to Fuel Economy, 1980–2001

The Corporate Average Fuel Economy (CAFE) program and the Gas Guzzler Tax program are both aimed at improving or maintaining the fuel economy of new light vehicles sold in the United States. The CAFE program fines vehicle manufacturers whose corporate average is less than 27.5 miles per gallon (mpg) for cars and 20.7 mpg for light trucks (pickups, vans, and sport utility vehicles). The Gas Guzzler Tax is collected from the public for each new car purchased with fuel economy less than 22.5 mpg. The Gas Guzzler Tax does not apply to light trucks.

The cumulative totals for collections by the two programs are:

  • CAFE Fines (1983–2001): $594 million
  • Gas Guzzler Tax (1980–2001): $1,557 million
Fines and Taxes Related to Fuel Economy, 1980–2001
Graph: Fines and Taxes Related to Fuel Economy, 1980-2001

Supporting Information

Fines and Taxes Related to Fuel Economy, 1980–2001
  CAFE Fines Collected Gas Guzzler Taxes Collected
Year (thousands of current dollars)
1980 -    740
1981 -    780
1982 -   1,720
1983       58   4,020
1984   5,958    8,820
1985  15,565  39,790
1986  29,872  147,660
1987  31,261  145,900
1988  44,519  116,780
1989  47,381  109,640
1990  48,429  103,200
1991  42,243  118,400
1992  38,287  144,200
1993  28,688  111,600
1994  31,499    64,100
1995  40,787    73,500
1996  19,302    52,600
1997  36,212    48,200
1998  21,740    47,700
1999  27,516    68,300
2000  51,067    70,800
2001  33,974     78,200
Total 594,356 1,556,650

Sources: CAFE Fines: U.S. Department of Transportation, National Highway Traffic Safety Administration, Office of Vehicle Safety Compliance, Washington, DC, 2003

Gas Guzzler Tax: U.S. Department of the Treasury, Internal Revenue Service, Statistics of Income Bulletin, Washington, DC, 2003

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