$1 Billion Plug-in Hybrid Tax Credit Part of $700 Bailout Bill

The incentives are estimated to cost about $1 billion over 10 years and are phased out after the auto industry sells more than 250,000 plug-in vehicles in a calendar year.

Published: 02-Oct-2008

WASHINGTON -- Congressional leaders have added $1 billion in tax breaks for plug-in electric vehicles to a $700 billion Wall Street bailout bill.

The provision is one of a number of tax proposals added to the bill that failed the House Monday 228-205. The rescue package would grant the U.S. Treasury wide authority to buy distressed mortgage-backed securities and other troubled financial instruments, including car loans and student loans. The Senate is expected to vote this evening on the new 451-page bill.

The provision would grant plug-in vehicles with at least a four-kilowatt battery pack a $4,168 tax credit. A vehicle like the extended range 2011 Chevrolet Volt with a 16-kwh battery would qualify for the maxium $7,500 tax credit for vehicles under 10,000 pounds.

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