Revised Senate Stimulus Tax Plan Boosts Incentives for Plug-In Electric Vehicles
By Scott Doggett January 27, 2009
Energy tax provisions slated for the massive economic stimulus bill now include expanded incentives for plug-in electric vehicles that backers call a promising way to help curb reliance on oil in the transportation sector, according to a revised Senate version unveiled today.
The package now expands an existing credit for plug-in electric vehicles by doubling the number eligible to 500,000. The change reflects part of a proposal pushed by Democratic Senator Maria Cantwell of Washington and Republican Senator Orrin Hatch of Utah and others who recently introduced legislation with several provisions to expand deployment of the vehicles.
The size of the credit begins at $2,500 and expands with the amount of battery capacity. The maximum credit for vehicles weighing 10,000 pounds or less is $7,500, and higher amounts are available for heavier zero-emissions vehicles.
Plug-in vehicles are seen as a way to curb dependence on foreign oil by effectively allowing electric power to substitute for oil-based transportation fuels.
The entire package provides a suite of renewable energy and efficiency measures, such as a three-year extension of availability of tax credit for wind and some other projects, a new credit for manufacture of advanced energy-related equipment, and extended and expanded credits for energy efficient homes.
The House is scheduled to vote on its version of the bill tomorrow, and Democrats want to send a final House-Senate plan to President Obama by mid-February. The overall economic recovery plan will cost approximately $825 billion.
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