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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 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.


"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997

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