Back in 2008, then Senator Barack Obama proposed a goal of having up to a million plug-in hybrid vehicles crisscrossing America’s roads by 2015. The president reiterated that goal in his budget speech this week, which also included:
- Dropping the current $7,500 federal tax credit and replacing it with a new, $10,000 cap. The figure would drop back to $7,500 in 2017, $5,000 by 2018, and finally to $2,500 in 2019. Note the figure would be based on the vehicle’s electric fuel economy; e.g., the Tesla Model S would cap at $7,500 regardless of year.
- The tax credit goes to the automaker or the lender as incentive to lower a vehicle’s retail price. Details were vague if purchasers would get any form of credit to apply to alternative-energy vehicles.
- Incentives for alternative fuel-powered mid and large-sized vehicles like SUVs. Again, which vehicles qualify is still unknown.
President Obama also proposed goals to cut oil imports by at least 30 percent by 2025 and utility companies to source 80 percent of their power from zero and low carbon resources by 2035.
Automotive.com’s take: President Obama’s latest budget proposal currently has no impact on consumers. However, many automakers are understandably nervous; they base their future plans on such rulings. Thus, don’t be surprised if EV development is on cruise control until 2013, after the election.
Source: Chicago Tribune, Washington Post
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