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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 omnicronx on 10/6/2008 10:48:06 AM , Rating: 2
Oh, by no means am I saying that there is not government intervention here, obviously the government is infusing money using tax dollars. My point was now that the banks have screwed everyone, people are going to complain about any government intervention no matter if it is a good or bad thing for the public. The U.S is in need to get rid of at least some of their dependency of foreign oil, one of the many ways to do this is to give car manufacturers incentive to make these cars, and consumers incentive to buy them.

In the long run explain to me how this will hurt the economy? At the very least any small amount of backlash involved will be offset by reducing oil consumption. You can't just expect Car companies who are either already or almost in the red to take the entire load. That would result in companies going bankrupt, and a huge loss of American jobs. But then again, who cares, you are probably middle class and well off, things will work out for you regardless right? Good ol lessez fair..

By Ordr on 10/6/2008 11:06:56 AM , Rating: 2
Disregarding the last two sentences of your otherwise coherent reply, you seem to ignore the fact that these subsidies and interventions are payed for by ever-increasing taxation, that our problems with foreign oil are greatly increased due to the Draconian restrictions on domestic drilling and environmentalist knee-capping of new refineries being opened. These, specifically, are the roots of the problems that you mentioned. Preventing our country from using resources that are otherwise freely available is precisely one of the major contributing factors that is hurting our economy.

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