President Obama’s latest budget holds a welcome nugget for people thinking about purchasing a green tech vehicle like an electric vehicle (EV). Rather than the current $7,500 tax credit currently in place for purchasers of environmentally friendly cars, you would get $10,000 knocked off the price of an electric vehicle when you actually purchase it, not when you file your taxes. This is good news for EV manufacturers as well as consumers.
According to Gas2 the $10,000 would be applied to natural gas vehicles as well other green technology cars which presumably takes in hybrids as well as EVs. The rebate as opposed to the tax credit would mean that more people would be able to purchase these green technology vehicles.
Right now the only people who can afford cars like the Tesla S car, Chevy Volt, or even Nissan Leaf have to have a fairly good income to shell out $36,000 to $60,000 for a car. If the $10,000 is taken off the front end, it moves at least a couple of the cars like the Nissan Leaf and the Chevy Volt into the affordable range at $26,000 and $31,000 respectively.
If manufacturers can get more people buying these green tech vehicles than they can produce more of the cars which in turn lowers the price. It’s simply that higher production means lower costs for all involved.
While Obama may be trying to help the adoption of green vehicles, Congress is another matter. The Republican majority in the House is rabidly pro-fossil fuels and anti-green anything. Getting any part of Obama’s budget through is going to be difficult. Getting this particular provision through may be just about impossible in this coming election year.
Too bad we have a Republican leadership whose stated goal is to make Obama a one term president. If they were more interested in helping car manufacturers and in turn consumers, we might see this little piece of goodness passed. Ford, Chevrolet, Tesla, GM and other American car companies would benefit from the passage of this provision.
Maybe we’ll be lucky and this provision will actually sneak through on rider to prolong Exxon and BP’s gas subsidies. Stranger things have happened.Tags: Chevrolet Volt, Nissan Leaf, Obama, tax credit, tax rebate, Tesla