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Chevrolet Volt
Bush signs bill which grants the Volt a $7,500 tax credit

In mid-September, DailyTech brought you news that congress was working on a new round of tax credits targeted at plug-in electric/hybrid vehicles. The tax credits were projected to weigh in at $3,000 for plug-in vehicles with at least a 6 kWh battery and top out at $7,500.

Toyota, which sells its Prius featuring a 1.3 kWh battery pack, balked at the tax credits as its hybrids wouldn't even qualify for the entry-level tax credit. Toyota also was unhappy that the only vehicle in the near future likely to qualify for the maximum $7,500 tax credit is the Chevrolet Volt.

Despite its opposition, Toyota's fears became law last week when President Bush signed the legislation which passed in the House by a vote of 263 to 171 as a part of the massive $700 billion Wall Street bailout package. The entire 10-year tax package for plug-in electric/hybrid vehicles is worth $1 billion.

Requirements to qualify for the tax credit have changed slightly since its inception in the Senate. The 6 kWh battery minimum dropped down to 4 kWh, while the base tax credit rose from $3,000 to $4,168. The maximum credit remains at $7,500 for the Chevrolet Volt with its 16 kWh lithium-ion battery pack.

The Chevrolet Volt gets its primary power from a 150 HP, 273 lb-ft electric motor. A 1.4 liter gasoline engine is also used to recharge the lithium-ion battery pack once the Volt's 40-mile battery range is depleted. According to GM, the Volt can save customers $1,500 per year in fuel costs based on a daily commute of 40 miles.

The $7,500 tax credit should go a long way towards making the Chevrolet Volt more affordable. Current estimates place the base price of the vehicle at $40,000 or higher.

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I'd rather...
By UninvitedGuest on 10/5/2008 9:59:31 PM , Rating: 1
I'd rather get a Hyundai Genesis, for that money.

The price tag of $32,500 is still too expensive for people who want an economy car for saving on fuel costs. There is a reason why people are willing to borrow money and finance purchase, opting to pay in installments even though in the long run it will cost them more. They just don't have the cash flow available in the short run to splurge.

So sure, the car will save you $1500 a year on gas (over what type of vehicle, I don't know. Over a pickup, or a competing hybrid?). You'd have to drive this car for over 9 years to make up the difference in purchase price between it, and the new Honda insight. And personally, I wouldn't bank on this unproven technology lasting 9 years.

As such, the car will really only gain traction amongst those who don't have to worry too much about fuel costs- they'll drive this because they're enviro conscious, or because it's the latest piece of technology. Which is why, if I had that type of money- I'd get a Hyundai genesis instead.

RE: I'd rather...
By FITCamaro on 10/6/2008 7:22:59 AM , Rating: 2
And personally, I wouldn't bank on this unproven technology lasting 9 years.

What is unproven about it? Locomotives have been using similar technology for years. It's a very simple system too. Far simpler than a system like the Prius has which has to constantly manage the electric and gas engines. This thing just uses the battery to drive the car. And when the battery gets to low, the gas engine/generator kicks on to recharge the battery.

RE: I'd rather...
By on 10/6/2008 9:58:19 AM , Rating: 1
Why all of the GM hate, man? Are you related to Al Gore? You must be a liberal wuss at the very least.

RE: I'd rather...
By on 10/6/2008 10:05:03 AM , Rating: 2
Doh, I hate it when I reply to myself. Doh, I did it again!

RE: I'd rather...
By omnicronx on 10/6/2008 10:10:36 AM , Rating: 1
What are you five? You know you are a big fag when you are online at 10 in the morning impersonating people on a blog site. I bet this is the highlight of your day..

RE: I'd rather...
By FITCamaro on 10/6/2008 10:08:45 AM , Rating: 1
Hello again little troll.

RE: I'd rather...
By omnicronx on 10/6/2008 9:55:26 AM , Rating: 2
This is a god damn mid sized sedan! This is not a Prius or Insight hatchback! You cannot compare how long it will make to get your money back, because it is a bigger car. You are comparing a high end GM car to a mid to low end Toyota. Now if Toyota had something like a Camry or Corolla hybrid that had comparable MPG and ran 40 miles on electricity, then you would have a valid comparison.

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