President Obama proposes higher tax credits for alternative-fuel vehicles
#1
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President Obama proposes higher tax credits for alternative-fuel vehicles
While I understand good intentions we are actually using less oil/gas yet prices continue to rise. It is a speculators markets as well as with growing demand in China/India a few thousand electric cars will do NOTHING to lower the price of oil.
The VOLT is a sales disaster while the family of Prius vehicles continues to sell like mad. The market has chosen and the Prius is simply a cheaper vehicle to buy.
Then what if the company just raises the price of the vehicle knowing a credit is coming, ala college tuition?
Sorry this is terrible, just a terrible plan.
The VOLT is a sales disaster while the family of Prius vehicles continues to sell like mad. The market has chosen and the Prius is simply a cheaper vehicle to buy.
Then what if the company just raises the price of the vehicle knowing a credit is coming, ala college tuition?
Sorry this is terrible, just a terrible plan.
WASHINGTON (Bloomberg) -- President Barack Obama proposed expanded tax credits and community research grants to make alternative-energy cars and trucks more attractive to buyers.
Electric, natural gas and hydrogen-powered vehicles would be covered by the plan, which Obama announced today in the battleground state of North Carolina.
Obama called on Congress to make two changes in tax law to coax drivers into less-polluting vehicles.
One would raise the tax credit to $10,000 from $7,500 for the purchase of a so-called advanced vehicle.
The credit would be applied instantly at the dealership.
The administration's goal is to make electric vehicles as affordable and convenient as gasoline-powered vehicles by 2020.
But the proposal comes as some automakers struggle to sell models powered by alternative fuels. General Motors will idle a Michigan plant for 5 weeks starting this month because of growing stockpiles of the Chevrolet Volt, a gasoline-electric hybrid.
"We need to invest in the technology that will help us use less oil in our cars and our trucks, and our buildings, and our factories," Obama said. "That's the only solution to the challenge. Because as we start using less, that lowers the demand, prices come down. Pretty straightforward."
The average retail price for a gallon of regular gasoline was $3.76 as of Tuesday, according to the American Automobile Association. That's up from $3.51 a year ago.
The second tax change would target buyers of electric and natural gas powered commercial trucks, including semi-tractor trailers.
Those vehicles would qualify for a 50 percent tax credit for half the additional cost over a conventional truck, to help overcome the initial upfront cost.
The proposals came as Obama visited a Daimler Trucks North America plant, which has begun hiring hundreds of workers to meet demand for heavy-duty trucks, a sign of economic recovery.
The plant, near Charlotte in the city of Mount Holly, has an assembly line that builds alternative fuel trucks.
Daimler Trucks North America, a unit of Daimler AG, is a partner in an Energy Department program focused on increasing the fuel efficiency of long haul, 18-wheel trucks by 50 percent by 2015.
Those trucks, about 4 percent of the on-road vehicles in the U.S., account for almost 20 percent of the nation's fuel consumption, according to the White House.
Charging stations
Obama also offered a new, $1 billion program to as many as 15 U.S. cities to finance investments in clean-vehicle infrastructure, such as charging stations, which would require congressional approval.
The president also highlighted an existing research program on how to cut the cost of electric vehicles and increase their range.
Lawmaker action isn't required, though the administration is asking for an additional $650 million for the year that begins Oct. 1.
Read more: http://www.autonews.com/article/2012...#ixzz1oXSfav00
Electric, natural gas and hydrogen-powered vehicles would be covered by the plan, which Obama announced today in the battleground state of North Carolina.
Obama called on Congress to make two changes in tax law to coax drivers into less-polluting vehicles.
One would raise the tax credit to $10,000 from $7,500 for the purchase of a so-called advanced vehicle.
The credit would be applied instantly at the dealership.
The administration's goal is to make electric vehicles as affordable and convenient as gasoline-powered vehicles by 2020.
But the proposal comes as some automakers struggle to sell models powered by alternative fuels. General Motors will idle a Michigan plant for 5 weeks starting this month because of growing stockpiles of the Chevrolet Volt, a gasoline-electric hybrid.
"We need to invest in the technology that will help us use less oil in our cars and our trucks, and our buildings, and our factories," Obama said. "That's the only solution to the challenge. Because as we start using less, that lowers the demand, prices come down. Pretty straightforward."
The average retail price for a gallon of regular gasoline was $3.76 as of Tuesday, according to the American Automobile Association. That's up from $3.51 a year ago.
The second tax change would target buyers of electric and natural gas powered commercial trucks, including semi-tractor trailers.
Those vehicles would qualify for a 50 percent tax credit for half the additional cost over a conventional truck, to help overcome the initial upfront cost.
The proposals came as Obama visited a Daimler Trucks North America plant, which has begun hiring hundreds of workers to meet demand for heavy-duty trucks, a sign of economic recovery.
The plant, near Charlotte in the city of Mount Holly, has an assembly line that builds alternative fuel trucks.
Daimler Trucks North America, a unit of Daimler AG, is a partner in an Energy Department program focused on increasing the fuel efficiency of long haul, 18-wheel trucks by 50 percent by 2015.
Those trucks, about 4 percent of the on-road vehicles in the U.S., account for almost 20 percent of the nation's fuel consumption, according to the White House.
Charging stations
Obama also offered a new, $1 billion program to as many as 15 U.S. cities to finance investments in clean-vehicle infrastructure, such as charging stations, which would require congressional approval.
The president also highlighted an existing research program on how to cut the cost of electric vehicles and increase their range.
Lawmaker action isn't required, though the administration is asking for an additional $650 million for the year that begins Oct. 1.
Read more: http://www.autonews.com/article/2012...#ixzz1oXSfav00
#3
Lexus Fanatic
I don't see where an increase in the Volt's tax credit to 10K is the answer. All that would do is to have the government (and, of course, taxpayers) subsidizing the Volt's already too-high price even more. What's needed, IMO, is for GM to simply lower the Volt's base-price, or, like Saturn did back in the 1990s, decree that dealerships could charge no more than list-price for them or lose their franchise. That would at least partially- solve the problem of the big dealer mark-ups (3-5K) that inflate the Volt's price even more and prevent the existing $7500 tax-credit from actually having much effect. GM also needs to work on several things with the Volt's interior and ergonomics, but that, of course, is a separate issue, and we won't get into that here.
Last edited by mmarshall; 03-08-12 at 10:02 AM.
#4
Lexus Fanatic
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#5
Lexus Champion
At the current slow rate of sales on the Volt, about 1k per month, the $10k tax credit (if approved & probably won't be) won't amount to much in the big picture. The current $7.5 k credit is an even smaller impact.
#6
Some parts of the country already have rolling blackouts because electric demands cannot be met. Until we have the ability to meet our current electric demand, maybe we should hold off on massive incentives encouraging the public to use more electricity.
Then they sell the plan as being a less-polluting option, but in reality the average electricity production for an electric car creates more pollution than if a gas-powered car were being driven thanks to about half the country's power still coming from fossil fuels.
And who are "some automakers" that are having trouble selling models powered by alternative fuel? It's just GM. Not anyone else. And if the Volt was not just another poorly designed GM failure, maybe people would buy it. As it stands, people tend not to want to drive around in an iPod Classic that may or may not burn their house down.
It is interesting that the tax credit would apply directly to the purchase, instead of the current wait. Judging from the price of the Volt, I get the feeling they intended to sell it under this type of program from the beginning.
Instead of spending billions pushing stuff that isn't really solving any problem, maybe our time and money would be better spent reducing the purchase of vehicles like the Chevy Suburban, which gets about 12 mpg and outsells the Volt 10 to 1.
Then they sell the plan as being a less-polluting option, but in reality the average electricity production for an electric car creates more pollution than if a gas-powered car were being driven thanks to about half the country's power still coming from fossil fuels.
And who are "some automakers" that are having trouble selling models powered by alternative fuel? It's just GM. Not anyone else. And if the Volt was not just another poorly designed GM failure, maybe people would buy it. As it stands, people tend not to want to drive around in an iPod Classic that may or may not burn their house down.
It is interesting that the tax credit would apply directly to the purchase, instead of the current wait. Judging from the price of the Volt, I get the feeling they intended to sell it under this type of program from the beginning.
Instead of spending billions pushing stuff that isn't really solving any problem, maybe our time and money would be better spent reducing the purchase of vehicles like the Chevy Suburban, which gets about 12 mpg and outsells the Volt 10 to 1.
#7
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thats a great post.............when there is no individual effect on paying the increased tax and that is if favoring the economy that makes a sensible decision!!
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#8
Lexus Champion
Well, if you read the whole story, he includes money for increased energy production to meet the demands for plug in cars. And he isn't proposing this just for the Volt! It's ALTERNATIVE fuel, not just plug in cars. Plug in cars aren't alternative fuels. Those would include hydrogen, natural gas etc. Read through it, it's not just for consumers, but for businesses to invest in other forms of fuel.
#9
Well, if you read the whole story, he includes money for increased energy production to meet the demands for plug in cars. And he isn't proposing this just for the Volt! It's ALTERNATIVE fuel, not just plug in cars. Plug in cars aren't alternative fuels. Those would include hydrogen, natural gas etc. Read through it, it's not just for consumers, but for businesses to invest in other forms of fuel.
#10
I wondered why automakers would sign on to this, and now we know. Cali is threatening to pull the state EV rebates for any automakers that don't sign on. That is one of the reasons many were against these type of rebates to begin with. What started as a way to help make EVs more affordable to the masses and assist the development of the technology has now be weaponized to control the business decisions of a company related to ICE cars.
I'd love to have a list of the autos that these legislators drive. I wonder what that average mpg would be.
I'd love to have a list of the autos that these legislators drive. I wonder what that average mpg would be.
#11
You forgot to mention the most important alternative fuel the President is currently pursuing.. The President/environmentalist are out of touch with society/reality. They all complain about saving the earth and yet environmentalist want to prolong Earths' agony with unrealistic/high cost solutions for humans. IMO The quicker our (human) extinction the faster the Earth can recover. There is enough oil/natural gas in our life time stop (you know who you are) procrastinating, with this save the planet crap. The Earth has already survived two large asteroids that wiped-out everything currently living on it, but Lo and behold Earth recovered over time from this catastrophe.
http://www.youtube.com/watch?v=xbjdX...eature=related
http://www.youtube.com/watch?v=xbjdX...eature=related
But to your point, it's a little scary to hear what some folks are talking about in regards to reducing the human population to save the planet, especially considering the bioweapons that exists today. I really hope that stuff is secure to the point that some "activist" can't get a hold of it and try to pull the equivalent of a Thanos snap on our society.
#13
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please start a new thread, this is too old.
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