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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 Ringold on 10/6/2008 2:55:43 AM , Rating: 4
quote:
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.


"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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