 Vehicles like the Chevy Volt, under the Senate's new EV bill would qualify for a $10,000 federal EV tax credit.
 Unlike some measures, the EV bills enjoy broad bipartisan support and were proposed by an alliance of Democrats and Republicans. (Source: PAUL J. RICHARDS/AFP)
Federal funding could be a big boost to the fledgling industry, says proponents
Whether
you view it as an investment in the future or a dangerous example of
mild socialism, since the 1780s the U.S. has invested in new
technologies, often handing businesses vast sums of money to get off
the ground. Among the most famous examples of this was land
grants to the railroad companies in the 1800s that totaled to what
would today be billions of dollars in value. The resulting
intercontinental railroad system helped turn the U.S. into a world
power.
Yesterday, the U.S. House and Senate introduced
legislation to continue this trend by financing the
transportation wave of the future -- electric vehicles. A
bipartisan group consisting of Rep. Ed Markey, D-Mass., Rep. Judy
Biggert, R-Ill., and Sens. Byron Dorgan, D-N.D., Lamar Alexander,
R-Tenn., and Jeff Merkley, D-Ore. proposed the legislation, which
would offer $10B USD in customer incentives to buy EVs and offer
money to manufacturers to build charging stations.
Sen.
Byron Dorgan, D-S.D., is one of the main sponsors of the Senate
version of the bill. Surprisingly, no Michigan representatives
were involved in the mix.
The Senate version also includes a
provision to bump the current tax credit of $7,500 USD for
buying an EV up to $10,000 USD. The House version includes a
bump to $9,500 instead, but only if they use $2,000 of the credit to
buy and install charging equipment.
The credits would apply to
the electric vehicles that are arriving before the year's end.
Nissan is deploying its 2011 Nissan Leaf EV this year in the U.S.,
but the vehicles have a long pre-order list and are already sold
out for the year. GM will unleash its EV, the 2011
Chevy Volt, in November.
Under the bill, cities could
apply to be one of five to eight so-called "deployment
communities." Selecting cities would receive $800M USD to
$1B USD to build charging
stations for electric vehicles. The Senate version would
offer $250M USD grants to 15 selected municipalities and
cities.
Biggert comments, "From plug-in hybrids to
all-electric cars, the auto industry is moving quickly to meet
consumer demand for more efficient vehicles that cost less to fuel
up. But our electric and transportation infrastructure must
keep pace with technology. [This legislation] will help
regional communities establish themselves as models for the
development and installation of the next generation of transportation
infrastructure, including public charging stations."
A
Senate version of the bill offers $1.5B USD for research
into batteries, with the goal of producing a battery that can go
500 miles on a single charge.
Overall, the bill
would bump the government's investment in EVs up from $25B USD to
$35B USD. That's not accounting for the currently offered
$7,500 tax credit on EVs that could account for a few hundred million
dollars in expenses as well.
"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer
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