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Remember Republican Congressman Mike Kelly, the representative from Pennsylvania who said "there is no market for [the Chevrolet Volt]"? He wants to make sure that ends up being true.

On December 30th, Kelly introduced H.R. 3768, which seeks "To amend the Internal Revenue Code of 1986 to repeal the credit for plug-in electric drive vehicles." "Amending" in this case simply mean to eliminate the up to $7,500 tax credit that the Code currently offers to people who buy a plug-in car. The highest rate comes from vehicles like the Volt that have a battery that's at least 16 kWh, but even the Toyota Prius Plug-In, with its 4.4-kWh pack, would offer buyers $2,500 back. H.R. 3768 would take this all away, and plug-in vehicles have already just lost three federal tax incentives.

Kelly does have an ear to the ground on vehicle sales, since he runs Kelly Chevrolet-Cadillac, which also offers vehicles from Hyundai and Kia. Kelly wrote in USAToday in early December that, "This is not to say I don't support the development of electric cars. I do, but not at taxpayer expense." He continued:

The misuse of taxpayer dollars to promote the electric vehicle is emblematic of the Obama administration's overall misunderstanding, and ultimate manipulation, of the free market principles that undergird our economy. President Obama has become the 'Venture Capitalist in Chief,' gambling hard-earned taxpayer dollars in green projects and industries that are more politically than performance driven.

The plug-in tax credit has been popular among people who support plug-in vehicles, but in the current political climate, all federal monies are under review. We suspect H.R. 3768 doesn't go anywhere, but we leave it to political watchers with better judgment than ours to chime in in the Comments to share their views.


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