A bill to provide for the conservation of petroleum and other natural resources by imposing an excise tax on the sale of certain automobiles and granting a tax credit on the sale of certain automobiles according to the rate at which such automobiles consume fuel.

Declares that it is the purpose of this Act to encourage the design, production, manufacture, and sale of passenger automobiles which are more efficient in the consumption of petroleum and other natural resources through the imposition of an excise tax or the allowance of a tax credit upon the sale of an automobile, depending on the rate at which it consumes fuel.

Provides, under the Internal Revenue Code, for an excise tax with respect to the price for which such automobile is sold by the manufacturer, dealer, or importer thereof, such tax ranging from zero on an automobile that averages between 18.5 and 19.5 gallons per mile to $1,000 on an automobile that averages less than 14.5 miles per gallon.

Sets forth the procedure for computing such tax for the period from July 1, 1977, to June 30, 1980.

Allows a tax credit on every new automobile based on the rate at which it consumes fuel according to guidelines set forth in this Act. Provides that the credit for the period beginning January 1, 1975, and ending June 30, 1977, shall range from zero on an automobile averaging between 18.5 and 19.5 miles per gallon and $1,000 for an automobile averaging over 26.5 miles per gallon.

Sets forth the procedure for establishing such credits for the period from July 1, 1977, to June 30, 1980.

Provides that no taxpayer shall be entitled to any tax credit more than once in each 24 month period, and such credit shall be claimed only during the tax year in which such purchase is made.

Provides that the tax imposed under this Act shall be paid by the manufacturer, producer, or importer of the automobile in such manner as the Secretary of the Treasury shall prescribe.

States that the rates of fuel consumption to be utilized in computing the tax under this Act shall be determined by the Environmental Protection Agency.