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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 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.


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