A bill to amend the Internal Revenue Code of 1954 to provide tax incentives for the manufacture, importation, and purchase of automobiles which use fuel efficiency.

Places a tax on the sale of new cars according to the fuel consumption rate of the automobile.

Makes the tax effective for model year 1978 and thereafter, with the tax increasing for the same rate of fuel consumption through model year 1983.

Directs the Secretary of the Treasury to establish, by regulation, procedures for determining the fuel consumption rate for each manufacturer or importer.

Provides that the tax imposed under this Act may be adjusted to compensate for increases in fuel consumption rates due to changes in emission standards.

Provides a credit against the income tax for the purchase of automobile with fuel consumption rates over 20 miles per gallon for model years 1978 and following.