Senate Proposes $7500 Tax Credit on Plug-In Electric Hybrid Vehicles
As part of the Senate’s proposed stimulus plan, tax credits of up to $7500 have been included for plug-in electric vehicles! The proposal signifies the Senate is willing to work with President Obama to wean the United States off its dependency on foreign oil.
The Senate proposal would double the number of cars eligible for the credit, as well as stimulate the economy through sales of plug-in electric hybrid vehicles when they hit the showrooms this fall.
Obama has stated there is not a “moment to spare” on the stimulus plan, and the Senate appears to be responding in kind with real change. “We’ll invest in what works,” Obama said, and I am heartened to see plug-in electric hybrids as part of this package. Personally, I think I could afford one given a $7500 tax credit; however, that amount is reserved for vehicles weighing 10,000 pounds or less. The size of the credit begins at $2,500 and expands with the vehicle’s battery capacity.
This new Senate proposal benefiting plug-in hybrid vehicles comes on the heals President Obama initiating the process that would force automakers to improve fuel efficiency by reducing tailpipe emissions. Offering an increased tax credit for alternative vehicles demonstrates the Senate is on board with the new president. The House has approved the president’s stimulus plan, with absolutely zero support from Republicans.