• Sep 24, 2008


Click above for high-res gallery of Chrysler's three new EVs

Legislation that includes tax credits for plug-in electric vehicles has passed the Senate. Now the House gets a chance to look things over and put it to a vote. The tax credits allow buyers of PHEVs to receive a credit as high as $7,500 and as low as $2,500 depending on the capacity of the vehicle's battery. Toyota had raised concerns that the bill focused solely on battery capacity, as its currently announced hybrid plans do not include anything that would approach the maximum credit. In fact, the Chevy Volt sits alone as the only product that has enough battery capacity for the top tier. Chrysler's recently shown electric vehicles would theoretically qualify if they ever see the light of day.

Once 250,000 qualifying PHEVs are sold, the credits begin to get smaller until they go away completely. At this point, the legislation -- and the vehicles -- have a long way to go before anybody could actually purchasing a qualifying car, but the framework is now in place.


[Source: Automotive News - sub. req'd]



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    • 1 Second Ago
  • 10 Comments
      • 6 Years Ago
      Great news...now the Volt will be in the low 30's...which is totally reasonable considering it's technology.
        • 6 Years Ago
        You're assuming the dealers are going to sell them at MSRP.... not likely.
      • 6 Years Ago
      This is basically a GM bailout by itself. Nothing else needed, thanks. Chevy will not be able to meet demand for years.
      • 6 Years Ago
      The tax credits will work for manufacturers and consumers in different ways. If you're selling a PHEV, you know you're gonna get consumers who want to save gas and get the tax credits. The lure of tax credits will also get more people in the showrooms --- so if they can not afford a PHEV, they may just buy a small or midsizer instead.

      If these vehicles become as popular as the Prius, more capacity may be dedicated to their production thus lowering the overall costs to manufacture and allow the respective companies to actually make a profit.
      Derek
      • 6 Years Ago
      Electric Jeep? Really?

      Freaking-A, just give us a Wrangler with the CRD in it already!
      • 6 Years Ago
      Idiots. Incentives should always be based on performance. They should have used X miles at X mph or something like that. That way the company can do what ever they want to make it most efficient. This just forces them to add bigger batteries.
        • 6 Years Ago
        True, but natural market forces will still push them to create something decent. If it doesn't sell because it can't compete with competition it isn't good to anyone.
        • 6 Years Ago
        Rocketboy... I agree but if you are going to do the wrong thing at least do it the right way.
      • 6 Years Ago
      Yeah that's called an incentive... make a viable pHEV and you'll get the tax credit.
      • 6 Years Ago
      Hard to believe people still need tax incentives to buy these with the price of gas being what it is and the resale being so favorable.