Bigger Electric Car Subsidy Possible in 2013

Bigger Electric Car Subsidy Possible in 2013

Things might get a lot sweeter in 2013 for folks considering a “new technology car,” as they’re being called at the White House.

President Obama’s 2012 fiscal year budget apparently includes a provision for increasing the federal tax credit from $7,500 to a more substantial $10,000. The subsidy hasn’t been passed yet, but if it goes through, people purchasing natural gas cars, EVs and extended-range hybrids will have more of an incentive to seal the deal.

The increased amount could serve to replace subsidy dollars that disappeared this year which went toward accessory items like home charging stations, meaning a few folks who bought those cars this year might feel a little bamboozled by federal policy.

That sting might be all the more pungent when people realize, as The Truth About Cars points out, that the new incentive is actually a refund available upon purchase instead of the more-complicated tax credit of the past.

Past issues aside, the President appears to have his sights set squarely on the future with a goal to have one million “advanced technology” vehicles on the road by 2015.

Questions about vehicle safety during incidents like the one we saw recently with the Chevrolet Volt battery fires certainly won’t help accomplish that target, but money talks and people are often quick to forget when there’s cash on the table for them. We’ll have to wait and see if the new subsidy makes the cut.

[Source: The Truth About Cars]

  • RJ

    WTF! The government already spends waaaay too much putting these cars on the road.

  • Chad

    Noooooooooo! The subsidy must stop! Why must the middle class enable these cars for the rich to made cheaper for the rich? If you can afford a $40,000 car, you don’t need my tax dollars.

  • mourad morocco

    We have a huge demand for electric cars and trucks in Tangier and Casablanca Morocco ASAP