Autoblog

How Washington's fiscal cliff deal helps NASCAR and electric motorcycles

Jeffrey N. Ross — Thu, 03 Jan 2013 16:31:00 EST

Filed under: Government/Legal, Earnings/Financials, Motorcycle, Racing

With the so-called fiscal cliff looming like a New Year's Day hangover, US lawmakers were able to strike an eleventh-hour deal that should prove beneficial to couples making less than $450,000 a year. Like any piece of US legislation, though, there was enough pork stuffed inside to ensure lobbyists and well-connected constituents remain happy. As a part of the deal, a few tax credits were extended that pertain to the automotive world.

On one hand, a 2009 tax credit was extended for electric motorcycles and scooters that gives buyers a break of up to 10-percent of the purchase price (up to $2,500). However, the deal also removed vehicles like golf carts from qualification. Another consequence of the fiscal cliff deal was that numerous biofuel tax credits were extended - our sister site, AutoblogGreen, broke the specifics down yesterday.

More unexpected is word that NASCAR track owners also benefited from the last-minute legislation with a huge tax break extension. The break, which allows track owners to deduct their facilities' deprecation over seven years (instead of the normal 39-year government estimate), will reportedly cost taxpayers more than $40 million per year. The NASCAR tax break was originally made law back in 2004, and was later extended under the TARP bailout package in 2008. CNN notes that the motorsports provision applies to the depreciation of facilities that hold at least seven days of racing each year, seat at least 70,000 fans and have concession stands that somehow benefit charitable organizations.

How Washington's fiscal cliff deal helps NASCAR and electric motorcycles originally appeared on Autoblog on Thu, 03 Jan 2013 16:31:00 EST. Please see our terms for use of feeds.

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Report: Detroit automakers pledge $2B investment after Michigan passes tax incentives

Zach Bowman — Thu, 28 Oct 2010 08:30:00 EST

Filed under: Government/Legal, Chrysler, Ford, GM, Earnings/Financials

The Michigan Economic Growth Authority has approved a series of tax incentives for Ford and Chrysler and expanded previously approved incentives for General Motors. Between a tax break engineered to help GM build a 900-job electric-vehicle battery facility in Warren and another to keep 4,000 people at work in the company's Renaissance Center headquarters, The General is looking at a considerable stack of incentives. According to The Detroit Free Press, the company has been granted a total of $757 million in potential tax breaks that hinge on the automaker keeping a total of 30,000 people at work.

But that's a drop in the bucket compared to what Ford and Chrysler walked away with. Ford was given a 15-year, $909 million credit. As part of that deal, FoMoCo has to retain 28,000 workers. Around $414 million of that tax break is geared toward helping Ford pump $850 million in to a slew of plants spread around Michigan.

Chrysler, meanwhile, took the incentive cake. The smallest of the big three was awarded $1.3 billion in incentives over 20 years geared at keeping 20,000 people at work. The tax breaks surround everything from upgrades to the company's Sterling Heights facility to work required to prepare its Dundee facility to manufacture the Fiat 1.4-liter Multiair four-cylinder.

All told, the tax breaks will reportedly allow the big three to invest a combined $2 billion in their respective Michigan facilities.

[Sources: The Detroit Free Press, The Detroit News]

Report: Detroit automakers pledge $2B investment after Michigan passes tax incentives originally appeared on Autoblog on Thu, 28 Oct 2010 08:30:00 EST. Please see our terms for use of feeds.

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GM's RenCen headquarters in Detroit 'at risk' without tax credits?

Chris Paukert — Tue, 17 Nov 2009 17:59:00 EST

Filed under: Government/Legal, GM, Earnings/Financials

According to The Detroit News, General Motors has gone on record as suggesting that without state tax credits designed to keep 2,500 employees ensconced at its Detroit Renaissance Center headquarters, the automaker could pull out of Motown's skyline and into the suburbs and surrounding areas.

As the story goes, transcripts from the Michigan Economic Development Corp. say that the Michigan Economic Growth Authority needs to amend a slate of already-approved tax credits to include the Renaissance Center. The requested amendment reportedly includes a provision that GM would need to keep at least 2,500 employees working at the RenCen with a total payroll of $60 million in order to qualify for the incentives.

If GM does not receive the tax breaks, it could disburse the approximately 1,500 additional workers at its headquarters to other offices in the metro Detroit area.

[Source: The Detroit News | Image: Bill Pugliano/Getty]

GM's RenCen headquarters in Detroit 'at risk' without tax credits? originally appeared on Autoblog on Tue, 17 Nov 2009 17:59:00 EST. Please see our terms for use of feeds.

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UK government unveils £5,000 electric car incentive program

John Neff — Thu, 16 Apr 2009 10:02:00 EST

Filed under: Government/Legal, Green

The UK government has announced a £250 million ($372M USD) incentive program designed to get more plug-in and electric vehicles on British roads. The heart of the program is rebates of up to £5,000 (nearly $7,500) for purchases of full electric or plug-in hybrid vehicles. This could be good news for companies like Mitsubishi, Nissan and General Motors. The Japanese automakers are planning to introduce battery electric cars over the next two years and General Motors plans to launch the Vauxhall Ampera (a rebadged Chevy Volt) in 2011. The program is aimed primarily at next generation full function electric vehicles like the Ampera and Mitsubishi iMiEV rather than the existing crop of low speed vehicles like the Indian-made G-Wiz.

In addition to subsidizing car purchases, the government wants to make life a little easier for EV drivers by putting in more public charging outlets. £20 million (about $30M) of the project is set aside for building out the country's infrastructure of charge points. Thanks to Brother_Will for the Tip!

[Source: BBC, Photo by Oli Scarff/Getty]

UK government unveils £5,000 electric car incentive program originally appeared on Autoblog on Thu, 16 Apr 2009 10:02:00 EST. Please see our terms for use of feeds.

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Senator calls for tax incentives on all new-car sales

Dan Roth — Wed, 12 Nov 2008 18:32:00 EST

Filed under: Car Buying, Etc., Government/Legal

When automakers are throwing thousands of dollars of incentives on the hoods of their wares in an effort to stimulate sales, what good would another $1,500 on a $25,000 car do? As the recent sales numbers show, buyers aren't being taken in by the constant sounding of the "SELL SELL SELL!" klaxon. Great deals on new cars are out there to be had, if only anyone had some money.

Senator Barbara Mikulski of Maryland thinks that the economic panic can be partially abated by allowing buyers of new vehicles to deduct auto loan interest, fees, and sales tax related to the purchase of a new car from their income tax. The proposed initiative would run from now through the end of 2009, and is only for families earning less than $250,000, or individuals making $125,000. Hey, nobody is really going to complain about getting a tax break, but it seems that buyers have already shown that they're wary, even with fantastic deals to be had.

[Source: Kicking Tires]

Senator calls for tax incentives on all new-car sales originally appeared on Autoblog on Wed, 12 Nov 2008 18:32:00 EST. Please see our terms for use of feeds.

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City of Flint gives GM tax breaks for Cruze and Volt factory

Jonathon Ramsey — Thu, 28 Aug 2008 18:32:00 EST

Filed under: Etc., Plants/Manufacturing, Chevrolet, GM, Earnings/Financials

Giveth, and taketh away, isn't that always the story? On the taketh away side, GM has recently lost a serious chunk of change. On the giveth side, The General received a $56 milion package of tax credits and grants to keep an SUV factory open in Ohio. It has also just received another package of tax credits from the city of Flint, Michigan to aid its investment in a factory that will build engines for the new Volt and Chevy Cruze. Approved over some constituent disapproval by the Flint City Council, getting GM to build the factory there will keep 300 jobs in the city. GM is now looking to the state of Michigan for more tax incentives.

[Source: Detroit News via Green Car Congress]

City of Flint gives GM tax breaks for Cruze and Volt factory originally appeared on Autoblog on Thu, 28 Aug 2008 18:32:00 EST. Please see our terms for use of feeds.

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GM wants tax incentives to build Volt in Detroit

Michael Harley — Tue, 03 Jun 2008 17:31:00 EST

Filed under: Hybrid, Plants/Manufacturing, GM

Click on the above image for a high-res gallery of the Volt Concept

With both hands extended, General Motors has asked Detroit City Council members for tax breaks to ensure the highly-anticipated hybrid electric-powered Chevrolet Volt will be built in their city. This news comes on the heels of GM asking Congress for a tax break to ensure the price remains near $30,000 when it arrives in showrooms in 2010. Enough already. Stuck in the turmoil of a $38 billion loss last year, pending job cuts, UAW strikes, and in the midst of an economy favoring fuel-efficient vehicles (as pickups and SUVs roll down the assembly line), GM is scrambling to survive. Whether it arrives as a hybrid, or in all-electric versions, the Chevrolet Volt can't come to market soon enough... regardless of who GM panhandles.

Gallery: Chevy Volt Concept

[Source: The Detroit News]

GM wants tax incentives to build Volt in Detroit originally appeared on Autoblog on Tue, 03 Jun 2008 17:31:00 EST. Please see our terms for use of feeds.

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Toyota asks Thai government for large hybrid tax breaks

Chris Paukert — Tue, 02 May 2006 17:32:00 EST

Filed under: Government/Legal, Green, Lexus, Toyota

Toyota's Thailand arm is lobbying the government for hybrid tax incentives. The nation's biggest automaker is hoping authorities will incentivize its Dual Synergy Drive hybrids with engines larger than 3.0-liters.

For its part, the Thai government already allots a 10-percent excise tax on sub 3.0-liter hybrids, but the cars remain unpopular, in part due to huge import tariffs (reportedly in excess of 80 percent!). However, the country has recently signed a number of free trade agreements that will go a long way towards leveling the playing field as early as next year.

That said, Toyota's request appears unlikely to be granted, as it is reportedly against government policy to encourage the use of larger vehicles that demand more resources.

[Sources: ThaiDay; Lexus]

Toyota asks Thai government for large hybrid tax breaks originally appeared on Autoblog on Tue, 02 May 2006 17:32:00 EST. Please see our terms for use of feeds.

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