General Motors, along with several other automakers, have been clamoring for tax incentives that would essentially reduce the sticker price for future green tech vehicles – such as the Chevrolet Volt – and it looks as though the government has been listening.
Buried in the Off-Shore Drilling Bill (otherwise known as H.R. 6899) lies a section that outlines a tax incentive program for “New Qualified Plug-In Electric Drive Motor Vehicles.” The credit system starts off with a $3,000 credit for any electric plug-in vehicle with a 5 kilowatt hour battery, with a limit capped off at $5,000, according to Kicking Tires. The system increases in increments of $200 for every kilowatt hour over 5, meaning the 16 kwh Chevy Volt would be eligible for the full $5,000 credit. Not quite the $7,000+ GM was looking for, but a start nonetheless.
The credit system will see a lifespan identical to the one currently used for hybrid vehicles. That means it will cover the first 60,000 vehicles produced per company, with incentives tailing off to 50 and 25 percent before being completely phased out. The bill is set to go into effect December 31st, 2008 – nearly two full years before a qualifying vehicle will be produced.
H.R. 6899 also carries a section that will require every gas station owned by a major gas company to have at least one pumped dedicated to an alternative fuel by 2018. While the gas companies will have a little wiggle room with the term ‘alternative fuel’, the bill mandates that the pump be for either natural gas, ethanol (whether it be E85 or higher), hydrogen or bio-diesel. Any non-compliant stations will be fined $100,000.
