What we refer to is a tax credit of $7,504 for buyers of the Volt which the legislation mandates. Specifically, the law provides a higher tax credit for cars with bigger batteries. These batteries are too large to be charged by an onboard engine in a traditional hybrid but needs to be plugged in to an electrical outlet for recharging.
The tax credit could be invaluable to General Motors in making the Volt affordable for consumers. The plan now is for the Volt to have a price tag of $30,000. A $7,500 tax credit puts the car in the $23,000 range and that could attract more buyers.