On the reasonable assumption that the President
will sign the rescue bill, we will have
substantial tax credits for plug-in cars. Next
year, whoever is President can build on this with
incentives for more than 250,000 cars, inclusion
of high-quality aftermarket conversions, a
federal fleet purchase and other measures.

Here's my quote on what it means, followed by two
news reports explaining the provisions:

"The new tax credits for plug-in cars are higher
than either Presidential candidate has proposed.
Now automakers and car buyers will no longer see
higher up-front costs as a showstopper. In the
centennial year of GM's founding and Ford's Model
T, the auto industry can now enter a century of
plug-in cars. And with this legislation, we'll
also get more wind and solar energy that will
make plug-in cars drive cleaner every year
they're on the road." -- Felix Kramer, Founder,
The California Cars Initiative (CalCars.org)


GREEN CAR CONGRESS: "Senate Version of Bailout
Bill has PHEV Credits" 2 October 2008
http://www.greencarcongress.com/2008/10/senate-version.html

The revised bailout legislation passed by the US
Senate on Wednesday (H.R. 1424) -- which has
ballooned from an original 3-page plan from
Treasury Secretary Paulson to the 451-paqe bill
approved by the Senate -- contains among its many
other new provisions a tax-credit for plug-in hybrid electric vehicles.

The credit is a base $2,500 plus $417 for each
kWh of battery pack capacity in excess of 4 kWh,
to a maximum of $7,500 for light-duty vehicles;
$10,000 for vehicles with gross vehicle weights
of more than 10,000 but less than 14,000 pounds;
$12,500 for vehicles with a GVW of more than
14,000 but less than 26,000 pounds; and $15,000
for any vehicle with a GVW of more than 26,000 pounds.

Phaseout of the credit is to begin after the
total number of qualified PHEVs in the US sold
after 31 December 2008 is at least 250,000.

Qualifying vehicles must have a battery pack with
at least 4 kWh of capacity—a provision that will
preclude the inclusion of the first generation of
Toyota PHEVs as well, potentially, as other lower all-electric range plug-ins.

EDMUNDS GREEN CAR ADVISOR "Plug-In Tax Credits
Hitching Ride On Wall Street Bail-Out Bill"
October 3 by John O'Dell
http://blogs.edmunds.com/greencaradvisor/2008/10/plug-in-tax-credits-hitching-ri\
de-on-wall-street-bail-out-bill.html
(with a CalCars photo)

As the House of Representatives takes up the
$700-billion financial system rescue bill today,
it automatically will be considering a
multi-billion-dollar package of tax breaks for
alternative energy programs and plug-in hybrid
purchases. The plug-in and alt-energy credits
were tacked onto the bail-out bill in the Senate
Monday to short-circuit an impasse that had
developed in negotiations with the House and was
threatening to kill the measures.

The plug-in hybrid tax credit provision would
provide $1 billion in tax credits for purchasers
of plug-in hybrids, the amounts varying with the
amount of all-electric travel a particular model
could provide. A car with an extended-range
electric drive system such as the upcoming
Chevrolet Volt, due for production at the end of
2010, would qualify for a $7,500 credit - the
maximum for vehicles under 10,000 pounds. The
credits are based on battery capacity rather than
electric range, but range increases with capacity.

The Volt, with a 16-kilowatt-hour battery, will
be capable of traveling 40 miles on its initial
charge, according to General Motors. Plug-in
vehicles with at least a 4-kwh battery pack would
qualify for a $4,168 tax credit. Chrysler and
Nissan Motor Co. both have announced plans to
build electric vehicles with Volt-like systems by
or after 2010, while Toyota is developing a
plug-in with a shorter all-electric range that it
will begin leasing to fleet customers at the end of 2010.

The incentives would phase out as sales of
plug-in mount, disappearing after automakers
collectively sell more than 250,000 plug-in
vehicles in a calendar year. The tax credit
portion of the bail-out bill also has larger tax
breaks for plug-in versions of medium and
heavy-duty trucks. It also extends existing tax
credits for cellulosic ethanol and biodiesel
development, and for wind, solar and hydro-electric power.

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Felix Kramer fkramer@...
Founder California Cars Initiative
http://www.calcars.org
http://www.calcars.org/news-archive.html
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