Obama’s budget calls for increased EV tax credit

The administration’s newly-released budget calls for a range of subsidies for high technology, including an increase in the tax credit for EV purchases from $7,500 to $10,000.

 

The yearly budget battle has begun, and EVs have been drawn into the fray. The Obama administration’s newly-released budget calls for a range of subsidies for high technology, including an increase in the tax credit for EV purchases from $7,500 to $10,000, as White House economic chief Gene Sperling announced today.

The budget document “Investing In Our Future” also alludes to the increase. It offers no specifics, but invokes language reminiscent of the Sputnik-inspired space race (China has also set a “one-million-vehicle” goal).

“In 2008, the President set an ambitious goal of having one million advanced technology vehicles on the road by 2015. To reach this goal and become the first in the world to do so, the Budget builds on Recovery Act investments and continues to support electric vehicle manufacturing and adoption in the United States through new consumer rebates, investments in R&D, and competitive programs to encourage investment in advanced vehicle infrastructure.”

Conservative media zeroed in on the proposal at once, lamenting that it would benefit higher-income car buyers – GM’s Dan Akerson told the AP in December that the average income of Volt owners is $170,000 per year. Of course, we all know how conservatives hate government goodies for the rich, so let them not forget that the EV tax credit applies not only to the $40,000 Volt, but also to the Nissan Leaf ($35k, to be built in Tennessee) and Mitsubishi i (rolling out of the company’s Illinois factory at about $30k each).

http://www.whitehouse.gov/sites/default/files/omb/budget/fy2013/assets/investing.pdf

 

Image: NASA