By on January 27, 2011

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.

Get the latest TTAC e-Newsletter!

7 Comments on “Levin Proposes Double-Down On EV Consumer Tax Credit...”


  • avatar
    SVX pearlie

    GM lobbied well with Levin. If they can get another 300k Volts subsidized, they’ll be in high clover for the next gen.

  • avatar
    carguy

    While to some, a tax break for EVs may be considered a market distortion, oil companies have been getting billions of dollars in tax breaks and research grants for decades so its really just evening the playing field.

    • 0 avatar
      jkross22

      Great logic – just because we screwed the pooch on Tuesday does not mean we should keep doing so.  Does anyone wonder what would happen if we just cut the subsidies and give taxpayers back the money that was paying for these boondoggles?  Oil, ethanol, farm… it’s all smoke and mirrors and the people hurt most by this are the middle class – you know, the ones paying for most of it.

  • avatar
    stuki

    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.
     
     

  • avatar
    rocketrodeo

    GFE alert: It’s Sander Levin, not “Sanders.”

  • avatar
    JimC

    D-MI you say?  I’m shocked… shocked…

  • avatar
    tparkit

    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.

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • Lou_BC: He’s gonna have to sell more if he’s happy with the plan to irradiate world hunger.
  • Lou_BC: That never happens…
  • schmitt trigger: RE: all lowercase corporate logos. Back when Motorola was king of the hill, its semiconductor...
  • kcflyer: It’s what happens when billionaires who hate America put a puppet in office who has not one single...
  • schmitt trigger: I am happy, seriously, that the comments have not devolved into a blue state vs red state political...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Adam Tonge
  • Bozi Tatarevic
  • Corey Lewis
  • Jo Borras
  • Mark Baruth
  • Ronnie Schreiber