Senate Works to Amend Plug-in Hybrid Tax Credit ~ Hybrid Car Review
Hybrid Car Review: Senate Works to Amend Plug-in Hybrid Tax Credit

Wednesday, January 28, 2009

Senate Works to Amend Plug-in Hybrid Tax Credit

In the latest proposal for the stimulus bill (pdf) (found via GCC), the rules for plug-in hybrid tax credits, passed as part of the bail out bill last year are being amended.  The present law sets the base amount of the plug-in electric drive motor vehicle credit is $2,500, plus another $417 for each kilowatt-hour of battery capacity in excess of four kilowatt-hours. The maximum credit for qualified vehicles weighing 10,000 pounds or less is $7,500. This maximum amount increases to $10,000 for vehicles weighing more than 10,000 pounds but not more than 14,000 pounds, to $12,500 for vehicles weighing more than 14,000 pounds but not more than 26,000 pounds, and to $15,000 for vehicle weighing more than 26,000 pounds. 

The Chevy Volt would likely qualify the buyer for $7,500 in tax credits, the maximum allowed for its weight.

The new rules would double the amount to the first 500,000 buyers before entering into a phase-out period, which does not extend beyond 2014.  It would also create a new credit for low-speed vehicles, motorcycles and three-wheeled vehicles of up to $4,000.  The mandate sets a 10% credit for these 'other vehicles' that would are being shut out because they are low-speed or do not have four wheels.  The new credit is not available for vehicles sold after December 31, 2011.

The stimulus bill also sets a three-year extension of availability of tax credit for wind and some other projects, a new credit for manufacture of advanced energy-related equipment, and extended and expanded credits for energy efficient homes. Find more info on the other tax credits at treehugger.

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