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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 Doormat on 10/6/2008 12:12:51 PM , Rating: 5
At 13,000 miles per year (which is about what I drive), 2,000 of which is on gas and 11K on electricity, and assuming an average price of $4/gal between 2011 and 2018, I would not have to buy 440 gallons of gas per year (vs. the 25mpg vehicle I now own). Thats $1760 per year in gas not purchased, instead replacing that with $300 worth of electricity per year.

From there, add in the better fuel economy (48MPG Volt vs 25MPG my car) for the 2,000 gas miles, and thats $153/yr saved, for a total of $1,613 saved per year. At seven years thats $11,291. And remember that the battery is warrantied for 10 years or 150,000 miles, so really you could calculate the savings over 10 years, which brings it up to $16,130 over the 10 years for the battery.

Take a $40,000 Volt, minus $7,500 in tax credits is $32,500. Minus $11,291 is $21,209.


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