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Obama continues to press for more fuel-efficient vehicles with new budget proposal

Despite the fact that consumers are not adopting electric vehicles and hybrids in force, the Obama administration continues to push ahead encouraging new vehicle research and broader availability for electric vehicles and hybrids. The federal government has handed out loans to help spur research and development to bring more fuel-efficient vehicles and other green technologies to market, and those loans have backfired on several occasions.

While Tesla Motors by all accounts seems to be thriving, producing upwards of 500 cars/week, some of its competitors haven’t been so lucky. Fisker was one of the recipients of a large government-backed loan and the company is expected to file bankruptcy soon.
President Obama has sent his 2014 budget proposal to Congress this week and while many programs and services are seeing their budgets cut, Obama is calling for a massive boost in money available for vehicle research. President Obama wants to increase the Energy Departments vehicle research budget by 75% to $575 million.

Tesla Model S assembly line [Image Source: Tesla Motors via Flickr]

Obama also wants to create a $2 billion trust fund to research ways to wean the country off foreign oil over the next 10 years.

"We'll continue our march toward energy independence," said Obama.

Obama is also calling for provisions in his budget to help jumpstart sagging electric vehicle sales. The president wants to increase the tax credit for electric vehicle purchases from $7,500 today to $10,000. With the current tax credit, the electric vehicle buyer takes the tax incentive as a discount on their yearly taxes. Obama's new plan would allow consumers to take the discount at the point of sale as a rebate.

The budget also wants to accelerate research and development for emerging battery technologies and new manufacturing processes to allow the automotive industry to produce cheaper electric vehicles with better range and faster charging capability.

Source: Detroit News

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By BRB29 on 4/11/2013 11:17:40 AM , Rating: 2
10k credit straight from the government at purchase. I must buy Model S NOW! Too bad I live in an apartment on the 6th floor with no charging station in the parking lot.

RE: wow!
By maevinj on 4/11/2013 11:50:42 AM , Rating: 2
If it's an instant 10k off of purchase, then I would definitely look at a Model S.

RE: wow!
By Adonlude on 4/11/2013 11:53:27 AM , Rating: 2
Sounds to me like Obama just wants to increase electric vehicle MSRP's by $2,500.

RE: wow!
By Ammohunt on 4/11/2013 12:07:16 PM , Rating: 3
10k credit straight from the taxpayers pocket at purchase.

Fixed that for you..there is no free lunch; keep repeating that.

RE: wow!
By BRB29 on 4/11/2013 12:14:09 PM , Rating: 2
I know it's not free. At least there's one way I can get back the massive tax I pay every year.

When I look at people on SSI simply because they're fat or the welfare scamming people, I get a little irritated. At least I can look at my Model S and smile in this scenario.

RE: wow!
By corduroygt on 4/11/2013 8:50:24 PM , Rating: 2
There is free lunch as long as investors keep buying treasuries at record low interest rates.

"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook

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