03.09.2012 - by Jay Friedland
EV Tax Credit Increase Proposed

Plug In America has worked extremely hard to gain more consumer incentives for plug-in vehicles and we are gratified to see this new presidential policy proposal which will increase the Federal tax credit to $10,000 and make it available at point of purchase. We will work with Congress to try and make this become a reality!

For more information read the fact sheet here.

6 comments on “EV Tax Credit Increase Proposed”
  1. Anonymous says:

    This is still less than the cumulative $12,000+ that gas cars get in fuel incentives over their lifetime at the gas pump. This should be promoted as a tax money SAVINGs bill. It reduces the trade deficit and (ironically) helps stabilize gas prices (by reducing demand).
    cleaner air, tax saving, economy boost = win-win-win

  2. Chad says:

    Even more details are available here: http://www.treasury.gov/resource-center/tax-policy/Pages/general_explanation.aspx. Click on the 2013 link under “current proposals.”

    My favorite part, by far, is changing from a tax credit to point-of-sale. A lot of people interested in the cars just can’t float the difference for possibly over a year–not to mention that not everybody is eligible for the tax credit, or can even tell at purchase time if they will be eligible. This part seems like a slam dunk.

    The increase to $10k is complicated. It doesn’t apply to cars that retail for over $45k, which is probably good because it’s aimed at moving lower-cost (and presumably higher-volume) vehicles. It also relies on a formula that considers the efficiency of the vehicle (which is great) compared to other vehicles of a similar “footprint” (which has some benefits, but also can encourage larger vehicles than necessary if not done carefully). So even if this passes, it definitely doesn’t mean that everybody looking at a $7,500 credit now will be getting $10k off their car next year. That’s OK; $7,500 is generally enough to overcome petroleum subsidies and make plug-ins cost competitive with gas cars of similar size, features and performance.

    There’s other pieces involved in the proposal too, like the city competition to prepare for alternate-fuel vehicles, support for other fuels like natural gas, etc. Those will take a lot of time to digest and seem very likely to have adjustments made. Plug In America will work to give feedback on which elements of this plan are likely to help increase plug-in adoption, and which won’t.

    1. Anonymous says:

      Thanks for the link and the news! I’ve been wanting to get into the EV game (Watching the Rav4 auction like a hawk) but like you said, I can’t afford to shoulder an extra 7,500 on top of a down payment till tax time. A point of Sale reduction could really help me jump into an EV much sooner than I thought I could, which is currently a hopeful goal of by 2015, but that already looks grim, so this would help a ton!

      Dan

      1. Anonymous says:

        Hi,

        I’m just wondering what the status of the $10,000 rebate is for 2013.

        Thanks

    2. Anonymous says:

      I hope the change will actually net a $10K credit (and wish it was retroactive to my purchase!!). The “$7500 credit” that everyone talks about is only for those who earn enough to have paid $7500 in taxes (which I did not) – with the tax credit being non-refundable and not carrying forward, I only received a fraction of that amount, when someone who earns more than I do would have received much more. Unfair certainly. I hope the new scheme fixes this.

    3. Anonymous says:

      What can I do as an individual to help make this happen (signatures? contact my local congressman/rep?)? Already stated by others-I cannot afford the additional $7500.00 until tax time and even then, I don’t earn enough to owe more than $7500.00 on my taxes to fully qualify for this incentive. This $10K point of sale credit would bring down the cost of the Ford Focus EV or the Nissan Leaf or even the Mitsubishi i to the point where the average person can consider purchasing one. This will create the demand which will motivate auto manufacturers to sell more EV’s which will ultimately bring the retail cost down and this will cut our dependence on oil and gasoline….that’s the point, isn’t it? Bring back the days when we can go for a Sunday cruise without feeling guilty about the cost of fuel to go nowhere in particular…As it is, right now we have to have a reason to justify the expense to get in our car and travel….Each day I read about a new discovery in battery technology or charging methods/public chargers for opportunity charging becoming more common-as well as creating the technology to lower the cost of putting solar panels on residential houses. Now I hope to live long enough to see all ICE cars being the more expensive alternative and rare cars on the road and EV’s are the norm/common method of personal transportation. We, as supporters of EV’s can make this happen!

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