Business Leaders Want US Tax Credit for Electric Cars

November 17, 2009 Taxation in USA  No comments

The Electrification Coalition has called on the US Government to give tax credits to purchase of all-electric cars. The thirteen member group of prominent business leaders, which was launched on November 16th, has stated that they wish to see the US Government provide heavier subsidization to the electrification of the country’s fleet of cars.

At its launch in Washington D.C, the Electrification Coalition also released their Electrification Roadmap, which outlines its proposed plan to see 100 million fully electric cars on the roads of the US by 2030. It begins with the proposal to launch electrification projects in six to eight cities across the US. This is accompanied, ideally, by significant raises in subsidizes for electric car purchases, which now stand at a maximum of US$7,500. The Electrification Coalition has also revealed that they wish for the US Government to provide tax credits to fund half of the costs associated with upgrades of existing electric grid facilities, and a further 50%-75% for the construction of new electric re-charge stations. Estimates provided within the Electrification Roadmap state that the blueprint would cost in excess of US$120 million, over the next eight years.

The Electrification Coalition proposes that with the funding it would be possible to see approximately 700,000 all-electric cars across the test cities by 2013. This would lead to an expansion of the program to include a further 20 cities and a total of seven million cars by 2018. The plan has been dubbed “cash for volts”, parodying “cash for clunkers”, the US Government’s incentive program to scrap fuel-inefficient cars.

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