Increasingly, the U.S. government is realizing the importance of self-reliance. With international security threats rising, energy independence has become increasingly significant. However, freeing the United States from energy dependence may have its drawbacks. Specifically, environmental impacts reign high in priority when discussing revamping the categories and volume of energy use.

Hybrid vehicles, alternative fuel vehicles, and fuel cell vehicles (hybrid-type vehicles) have been cited as significant tools, which could be used to combat the current energy entanglement while at the same time remaining conscious of, and accountable to, environmental risks. The National Energy Policy Development Group concluded that "[w]ith forward-looking leadership and sensible policies, we can meet our future energy demands and promote energy conservation, and do so in environmentally responsible ways that set a standard for the world." Through President George W. Bush's commitment to energy security and environmental protection, the U.S. Congress and the states have attempted to use hybrid-type vehicles to their full advantage via tax credits and other incentives.

Nevertheless, continuity in environmental policy and stability in tax policy have suffered because the overall plan for energy independence has followed a disheveled path. Competing agendas have counteracted the intended effectiveness of tax credit and incentive programs for energy efficiency.

This Article will discuss the above tax credits and incentives and attempt to demonstrate how they have been and continue to be ineffective due to policy disruptions via congressional and executive inaction, nominal action, and competing policies. Part I of the Article will discuss the general principles behind American environmental policy and environmental policy as a whole. Part II will discuss tax policy within the United States and its potential impact on social, economic, and consumer demand. Part III will discuss hybrid vehicles, alternative fuel vehicles, fuel cell vehicles, and fuel economy within the U.S. tax and environmental agendas. Part IV will attempt to show how the interplay between the current tax scheme and the environmental and energy goals within the United States hinders the development and success of each. Finally, Part V will conclude that the current and proposed energy programs of the United States disregard fundamental environmental and tax policy norms, which make them ineffective.