Levin Proposes Double-Down On EV Consumer Tax Credit

Edward Niedermeyer
by Edward Niedermeyer

Rep Sander Levin (D-MI) has introduced legislation which would increase the cap on consumer tax credits for plug-in electric vehicles.The current subsidy allows consumers to take a $7,500 taz credit, but caps the number of qualifying credits at 200k per manufacturer, but Levin’s bill would raise that to 500k units. Said Levin in a statement

Green vehicles represent the vanguard of automotive innovation, but they have to be economical for consumers and profitable for manufacturers. Raising the cap on this credit will help carmakers reach the demand and production scale necessary for long-term viability.

To which, his brother Senator Carl Levin, adds

The U.S. auto industry is poised for a technological explosion that promises to fundamentally change transportation here and around the world. But if we fail to support this revolution, workers in China, India, South Korea and our other competitors will build these vehicles instead of American workers.

The call to raise the cap for EV consumer tax credits was first publicly raised by GM’s Tom Stephens, who argued that 200k units was inufficient government support to keep the Volt viable until the second generation comes out. At the time, Rep Debbie Stabenow argued that credits should be “front-loaded” and deducted from the price of the vehicle at the dealership, but that proposal seems to have fallen b the wayside.

Edward Niedermeyer
Edward Niedermeyer

More by Edward Niedermeyer

Comments
Join the conversation
4 of 7 comments
  • Stuki Stuki on Jan 27, 2011

    Progressivism at it's most obviously self serving and crass. Due to the progressiveness of the US income tax, the people getting this benefit, will overwhelmingly be those for whom it is the least likely to sway purchasing decisions. Put $7500 on the hood of every electric car, and you'll see them move real fast. Particularly the cheap ones that would then make all kinds of sense, instead of the overwrought deers caught in the headlight of Moores law, that the current scheme is encouraging. But heck, it's only China's money anyway. So I guess they are the ones who should be complaining about subsidizing flavor of the month, self righteous yuppies, not me. All I have to focus on, is getting a government that will stick it to gullible Chinese creditors instead of me as a tax payer, when that particular choice becomes pressing a few years from now.

  • Rocketrodeo Rocketrodeo on Jan 27, 2011

    GFE alert: It's Sander Levin, not "Sanders."

  • JimC JimC on Jan 27, 2011

    D-MI you say? I'm shocked... shocked...

  • Tparkit Tparkit on Jan 28, 2011

    We are moving beyond the bailouts... into proxy bailouts -- served up as tax credits, consumer subsidies, government/industry/labor "partnerships", loan/grants, research support, marketable carbon offsets, ethanol-style boondoggles for "alternative transportation", circuitous & incestuous self-dealing by FOW (Friends of Washington), and lush contracts to rent-seekers like GE (a.k.a. "Government Electric') -- all paid for by you and me.

Next