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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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By SiliconAddict on 10/6/2008 12:01:21 AM , Rating: 1
Please enlighten us where you plan on escaping too? The US has some of the lowest taxes in the damn world, and yet we complain the most. Lets ignore the fact that most other countries that do have high taxes don't have an infrastructure that is crumbling, and federal employees that get paid for dick.

I swear to god is it any wonder why us Americans get stereotyped as winy bitches? Is it also any wonder why Americans also are so heavily in debt up to their noses in credit debt? People are bitching about the bailout bill without even knowing enonomics 101. Namely if you are going to spend money it shouldn't be via credit, and that generally more money should be coming in then being taken out.
And yet many of my fellow Americans are screeching like 2 year olds' that "its not fair". Guess what asshats? Blame this debacle on Wall Street all you want. Its also your fault for buying houses, and goods well outside your means to pay them off. Right now I have a moderate mortgage, just under 3 grand on my CC from a new laptop that is slowly being widdled down, a mild car payment, a handful of utilities, all the while still smacking money into retirement in 30+ years and a rainly day fund.

People need to learn how to manage their finances and take economics 101.

By mikeyD95125 on 10/6/2008 12:21:46 AM , Rating: 2
Do you actually keep a balance on your credit card? Money down the toilet.

By puckalicious on 10/6/2008 9:38:53 AM , Rating: 2
Maybe you don't understand that most people are forced to carry debt because there is no other alternative.

Go hungry or carry debt? Easy choice.

Go homeless or carry debt. Easy choice.

Stop taking needed prescriptions or carry debt. Easy choice.

Meanwhile today's CEO: Manage a company correctly and benefit many people, or take a $50 million golden parachute to benefit only you? EASY CHOICE.

By Entropy42 on 10/6/2008 10:45:03 AM , Rating: 2
He said that he was putting money into retirement and a rainy-day fund. That doesn't exactly equate to not being able to eat.

By glennpratt on 10/6/2008 11:02:32 AM , Rating: 2
Go hungry or carry debt? Easy choice.
Go homeless or carry debt. Easy choice.
Stop taking needed prescriptions or carry debt. Easy choice.

These aren't the only choices most working people are faced with. Here in Dallas, almost any job you can find will cover an apartment (especially if you live with a roommate), food and health care. You just might need to adjust your standard of living to what you actually earn.

I don't blame people for racking up debt, it's too easy in this day and age, but it's not the only option.

By sweetsauce on 10/6/2008 2:49:32 AM , Rating: 2
So people gambling on sub prime loans hoping they can flip the house for profit is bad, but banks gambling that these people will actually afford the loan is good and deserves a bailout? Please justify this reasoning for me. I guarantee you if the government decided to assume all these loans, set it at a decent flat rate, and let these people keep their homes we'd be better off. Instead we just screw the people, and reward the idiot lenders with free tax money. Socialized capitalism is the worst thing this country has ever done, yet i totally understand why they did it. In fact its a brilliant way to redistribute wealth. I'd argue this "crisis" was planned all along, sure seems that way.

Don't mind me, im just a "conspiracy nut" right? wink wink.

By Lord 666 on 10/6/2008 8:44:17 AM , Rating: 2
Along with the new restrictions on bankruptcy in 2005, ethanol importation tax, and restrictions on diesel emmissions?

You can quote me on this - I personally feel that Bush will be hailed a genius in 20 years after history shows us being in Iraq/Afghan and his actions prevented a massive depression. How did the US eventually get out of the Great Depression? WWII.

By Topweasel on 10/6/2008 3:14:10 PM , Rating: 2
Agreed. I also see a lot of Reagenism here. Right people a going to be angry that we are going through a depression, paying more for oil. But in 5-10 years I see an amazing bounce back coming its kinda of teetering on the blades edge but I see it happening. The Problem is I think this current hiccup could have been avoided in the 90's but I think Clinton was looking a short term numbers, highest growth lowest unemployment, lowest homeless. But helped create something almost completely not maintainable.

By Oregonian2 on 10/6/2008 9:55:09 PM , Rating: 2
That might be a good idea so long as those who bought it to flip aren't allowed to sell the house at a profit (should that ever happen) in order to get help with keeping it now.

By Ringold on 10/6/2008 2:55:43 AM , Rating: 4
The US has some of the lowest taxes in the damn world, and yet we complain the most.

Well, compared to Western Europe, true. Compared to pretty much everyone else though, they're pretty high. Compared to the OECD our corporate taxes are nearly the highest.

But it's also not Western Europe where ex-patriot American's flock to for work. I'd rather be unemployed than take work in France. It's places like Hong Kong, Dubai, and Eastern Europe with things like 15% flat rate taxes or FEZ's (Free Economic Zones) where taxes are close to zero.

I agree on all the rest, though. People leverage up on credit in their private lives, and now are shocked that when the bubble comes out of the engine of their credit (their homes) that the credit markets need bailing out? This is not a failure of capitalism; this is capitalism giving us what we deserve for our collective actions.

"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch
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