Tomorrow, President Barack Obama will address Congress about his $787 billion emergency economic stimulus package, meant to boost the struggling U.S. economy by putting more money into the hands of taxpayers, protecting existing jobs, and creating some new ones.
Deep within this legislation is a set of tax credits for plug-in hybrids and other electric vehicles, with a minimum credit of $2,500 and a maximum of $7,500. This time around, three-wheel and even some two-wheel electric vehicles will qualify for the rebate.
The rebate schedule goes like this: for businesses and regular consumers buying electric electric low-speed vehicles, motorcycles, and three-wheeled vehicles, a 10% tax credit is available through 2011, with a $2,500 cap. For traditional fossil-fuel vehicles converted into plug-in electric vehicles, a 10% tax credit is also available through 2011, with a $4,000 cap. Beginning next year, full-scale commercial plug-in electric vehicles can earn a maximum tax credit of $7,500, depending on battery capacity. The credit will phase out for each manufacturer after they sell 200,000 plug-in vehicles.