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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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RE: Not Enough at $699 Billion
By Fnoob on 10/5/2008 10:03:41 PM , Rating: 5
Ain't it truly amazing that with the eyes of the whole country (and the world) fixated upon this bill... that they actually put ANY pork in there? It was deemed 'super duper important' that they got this bill passed by (hopefully) last monday before the asian markets opened - and they were spending time cramming 37 cent excise tax exemptions for Oregonian makers of childrens wooden arrows!

We pay these morons why?


RE: Not Enough at $699 Billion
By Gul Westfale on 10/5/08, Rating: -1
RE: Not Enough at $699 Billion
By MrSmurf on 10/5/08, Rating: 0
RE: Not Enough at $699 Billion
By Samus on 10/6/2008 1:21:40 AM , Rating: 5
The Volt should be considered a luxury car. It's going to be pretty fast, its pretty light (compared to a Prius at least) and it's cutting edge. So, comparing it to a $20,000 car is like comparing a Audi to a VW, or a Volvo to a Ford. They're engineered by the same people and sometimes even come from the same factories, but they are completely different animals.

Have you not seen the inside of the Volt? It's like a life-sized iPod ;) Just so you know who this vehicle is targeting.


RE: Not Enough at $699 Billion
By paydirt on 10/6/2008 8:58:18 AM , Rating: 2
$20,000 to be officially cool. Not too shabby.


RE: Not Enough at $699 Billion
By silversound on 10/6/08, Rating: 0
RE: Not Enough at $699 Billion
By Doormat on 10/6/2008 12:12:51 PM , Rating: 5
At 13,000 miles per year (which is about what I drive), 2,000 of which is on gas and 11K on electricity, and assuming an average price of $4/gal between 2011 and 2018, I would not have to buy 440 gallons of gas per year (vs. the 25mpg vehicle I now own). Thats $1760 per year in gas not purchased, instead replacing that with $300 worth of electricity per year.

From there, add in the better fuel economy (48MPG Volt vs 25MPG my car) for the 2,000 gas miles, and thats $153/yr saved, for a total of $1,613 saved per year. At seven years thats $11,291. And remember that the battery is warrantied for 10 years or 150,000 miles, so really you could calculate the savings over 10 years, which brings it up to $16,130 over the 10 years for the battery.

Take a $40,000 Volt, minus $7,500 in tax credits is $32,500. Minus $11,291 is $21,209.


RE: Not Enough at $699 Billion
By bigboxes on 10/6/08, Rating: -1
RE: Not Enough at $699 Billion
By Lord 666 on 10/6/2008 8:12:40 AM , Rating: 5
Do you have a source for the .37 tax in plain english?

My favorite example of nonsense goverment legislation is within the PATRIOT Act is the verbiage to restrict sales of psedoephedrine.

We only pay them because average americans are too busy watching "dancing with the stars" or other mindless distractions to actually focus on what's really important.


RE: Not Enough at $699 Billion
By Lord 666 on 10/7/2008 1:54:04 AM , Rating: 5
Researched it; the wooden arrow thing is on page 263 of this piece of poop http://financialservices.house.gov/essa/essabill.p...

PS - the pseudoephedrine section of the 2005 Patriot Act is here http://www.fas.org/sgp/crs/intel/RL33332.pdf on page 67


RE: Not Enough at $699 Billion
By MrBlastman on 10/6/2008 9:56:29 AM , Rating: 2
You and I voted for them, that is why :P

You DO know why they put in that provision for wooden arrows, don't you?

It is so after the taxpayers digest what this bill really is, they can break those arrows in half and shove them up their tail ends and enjoy the splintering pain! ;)

disclaimer: This post does not indicate my support, or non-support of said bill; rather, it was done in pure gest.


RE: Not Enough at $699 Billion
By xti on 10/10/2008 2:42:02 PM , Rating: 2
heh


"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home

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