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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 GiantPandaMan on 10/6/2008 11:16:31 PM , Rating: 2
Okay, your point is so full of crap that I had to reply to this one.

#1) The problems with ARM's started to show in 2006. These ARM's were not given back in 1994 but far more recently.
#2) Republicans ruled the Congress and Senate from about 1995 to 2007. The White House since 2001.
#3) Neither Fannie Mae or Freddie Mac were small players in the ARM's market. Fannie Mae and Freddie Mac's problems were they had too much SUB-PRIME mortgage debt. No dodging there.

Blame everything on Freddie Mac and Fannie Mae? Umm, no. The problem is far larger and reaches into far more companies than that. What hand did the federal government or Democrats have in Lehmann Brothers? Was it the federal governments fault that AIG, Wachovia, WaMu and others were about to go insolvent? Stop putting your head in the sand so you can point fingers and feel better. Freddie Mac and Fannie Mae were simply the first to show signs and go down.

Blame everything on Democrats? Umm, your timeline is way off.

Inevitably, EVERYONE in government, the people who got the loans, and the people who gave them is to blame. Painting one single group as the culprits is oversimplifying, ignorant, and knee-jerk. The mortgage mess was caused by lack of regulation. Let me repeat. The mortgage mess was caused by lack of regulation! If you're fine with this happening every once in awhile (and no bailout) then you're a true free market capitalist. This is what free market capitalism, along with growth, can cause. As with all systems, it has its pros and cons.


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