President Obama Proposes $10,000 Electric Vehicle Incentive
The Obama Administration wants to boost government incentives on electrified vehicles from the current $7,500 to $10,000. The increase is a provision in Obama's proposed $3.8 trillion budget for the fiscal year starting Oct. 1.
Obama's idea is to support a critical emerging clean technology and support blue-collar manufacturing of electric cars in the United States. However, critics were quick to point out that the subsidy would cost taxpayers $100 million each year if it is approved by Congress, based on just 10,000 plug-in autos sold each year.
If approved, vehicles including the Chevrolet Volt, Nissan LEAF, and Ford Focus Electric would qualify for $10,000 in federal incentives.
The proposed hike in the per-vehicle incentive is one method the Obama Administration will use to hit its aspirational goal of 1 million advanced-technology vehicles on US roads by the end of 2015. There's no set timeframe on the possible passage of President Obama's proposed budget, which includes the boosted incentives. The Wall Street Journal and others claim that Obama's budget has little chance of passage. Regardless, the proposal draws a line in the sand declaring that EV tax credits (even at the current $7,500 level) will be defended against Republican attacks.
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