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Congressmen Propose Lifting Number Of Vehicles Eligible For EV Tax Credits

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2011 Chevrolet Volt

2011 Chevrolet Volt

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Hot on the heels of President Barack Obama’s pledge of support for expanding U.S. production and sales of plug-in electric cars in his State of the Union address earlier this week, comes more support for the zero emission vehicles from a pair of Michigan Democrats.

Brothers Rep. Sander M. Levin and Sen. Carl M. Levin announced yesterday that they plan to push legislation that would call for an increase in the number of vehicles eligible for the $7,500 federal tax credit afforded to buyers of plug-in electric cars such as the Chevrolet Volt and Nissan Leaf.

The tax credit is currently limited to 200,000 cars per manufacturer but the Levin brothers hope to lift this to 500,000. Such a plan could cost tax payers as much as $19 billion over the next 10 years, though the flow on effects in terms of support for the growing electric car industry here in the U.S. would be monumental.

Separately, President Obama said he is aiming to get one million electric cars on the road by 2015 and to do so he is proposing to spend more on research and development.

Furthermore, Vice President Joe Biden called on congress yesterday to increase spending on research as well as offer buyers of electric cars rebate incentives rather than tax credits. Such an incentive would mean buyers won’t have to wait until they file their taxes but would receive the rebate at the time of purchase.

[The Wall Street Journal]
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Comments (4)
  1. Rebates will be a larger benifit for the majority of consumers than the Tax credit.
     
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  2. The tax rebate makes a lot more sense to get the sales, many older people on fixed income might be in the need to purchase a new car and want to go greener and the rebate would work where the tax credit wouldnt because their income level doesn't require them to pay taxes any longer.
     
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  3. The Open Fuel Standard would cost the government nothing and do much more towards reducing imported oil.
     
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  4. Electrified cars will not happen big enough nor fast enough to head off peak oil and a bidding war. We need 100 million FFVs, bio and synthetic fuels mixed at as large a percentage as we can with blender pumps to make a difference.
     
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