National Environmental Trust president argues for raising the cap on hybrid tax credits
Clapp sees little foresight on the federal government's part when Congress capped the hybrid incentive at 60,000 per automaker and thinks it's even worse that no lawmakers are standing up to raise the cap. Because no U.S. automaker is close to hitting the 60,000 hybrid limit anytime soon, the cap essentially acts as a limit for Toyota and effectively implements an artificial impediment to a "free" competition, reducing the incentive for the Big 3 to change.
Clapp offers an image of the hybrid vehicle market a year from now, when the tax credit for hybrid Toyotas are eventually reduced to nothing. A Chevy Silverado hybrid that averages 18 miles per gallon, he says, will receive a $650 incentive while the 55 mpg Prius will get none.
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