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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 piroroadkill on 10/6/2008 8:39:56 AM , Rating: 2
Address you are points?


By theapparition on 10/6/2008 11:14:07 AM , Rating: 2
Typical Daily Tech reader reply.

Apparently, when you can't refute the content, the intent is to discredit the post by pointing out spelling or gramatical mistakes.

Replies like that just make you look small.


RE: Not Enough at $699 Billion
By Oregonian2 on 10/6/2008 9:48:44 PM , Rating: 2
Problem he has probably is the word "performance" and different interpretations of it.

Also suggested is an idea that this particular tax advantage is singular and will not, no, can not be changed or added to in any way forever should some other technology come by. I think this idea is faulty.

This law does not have to fully encompass all possible things that might be tax enhanced. Additional laws are possible, there isn't a shortage of them. More can be added if a technology coming along is suitable for whatever reasons they're done. Not like something completely different will just show up next week in auto lots having been developed in complete secrecy before actual delivery.

I wonder if Toyota complained about the tax credits that helped their sales.


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