

Legislation that includes tax credits for plug-in electric vehicles has passed the Senate. Now the House gets a chance to look things over and put it to a vote. The tax credits allow buyers of PHEVs to receive a credit as high as $7,500 and as low as $2,500 depending on the capacity of the vehicle's battery. Toyota had raised concerns that the bill focused solely on battery capacity, as its currently announced hybrid plans do not include anything that would approach the maximum credit. In fact, the Chevy Volt sits alone as the only product that has enough battery capacity for the top tier. Chrysler's recently shown electric vehicles would theoretically qualify if they ever see the light of day.
Once 250,000 qualifying PHEVs are sold, the credits begin to get smaller until they go away completely. At this point, the legislation -- and the vehicles -- have a long way to go before anybody could actually purchasing a qualifying car, but the framework is now in place.
Most know House Resolution 6899 as the offshore drilling bill, but it also contains the plug-in tax credit that Toyota complained about yesterday, as well as a mandate that all gas stations offer an alternative fuel pump by 2018. The U.S. House of Representatives passed the bill today with a vote of 236 - 189, and the details of the plug-in tax credit are different than what Automotive News reported yesterday. Kicking Tires reports that the tax credit would apply to any "new qualified plug-in electric drive motor vehicle" with a battery of at least 5 kWh. It would start at $3,000 and add $200 for every kilowatt hour over 5 up to a maximum of $5,000. The 2011 Chevy Volt is the only plug-in vehicle officially confirmed for sale so far, and with a 16kWh battery would max out the credit at $5,000. The bill also reveals that the plug-in tax credit would have an identical lifespan as currently available hybrid tax credits, which means the first 60,000 vehicles per company that meet the requirements would be eligible, and the credit would be reduced by 25% then 50% before being phased out. If passed into law, the plug-in tax credit would take effect after December 31st, 2008, though the first eligible vehicle won't be available for another two years. As for the section on mandatory alternative fuel pumps, it requires that every gas station owned by a major gas company have at least one alternative fuel pump by 2018. The bill specifies "alternative fuel" as natural gas, E85 or higher, biodiesel, renewable diesel or hydrogen. Any company not in compliance by 2018 would be fined $100,000 per station, though a $50,000 tax credit would be offered to stations that choose an E85 pump.

Before Cerberus took over Chrysler, the Auburn Hills-based automaker announced that it would build a new axle plant in Marysville, MI as part of a broader plan to spend $3 billion on infrastructure upgrades. The new plant is under construction and scheduled to open in 2010, but the three headed dog's keen eye(s) on cash preservation has lead to talks with transmission maker ZF to somehow share the facility. It is unclear at this point what ZF, which is known for its transmissions but also produces axles for Mercedes, would get out of the deal, but the supplier would likely run the plant and get to build and sell axles for Chrysler, as well as other automakers, at the facility. The move to share the Marysville facility with ZF makes sense for Chrysler from a cash standpoint, and it could supply axles for one of the Pentastar's many collaboration projects with other automakers like Nissan. Regardless of whether ZF or Chrysler ends up owning the facility, the plant would still use the union workforce being abandoned from the soon-to-close Detroit Axle plant.
Before Cerberus took over Chrysler, the Auburn Hills-based automaker announced that it would build a new axle plant in Marysville, MI as part of a broader plan to spend $3 billion on infrastructure upgrades. The new plant is under construction and scheduled to open in 2010, but the three headed dog's keen eye(s) on cash preservation has lead to talks with transmission maker ZF to somehow share the facility. It is unclear at this point what ZF, which is known for its transmissions but also produces axles for Mercedes, would get out of the deal, but the supplier would likely run the plant and get to build and sell axles for Chrysler, as well as other automakers, at the facility. The move to share the Marysville facility with ZF makes sense for Chrysler from a cash standpoint, and it could supply axles for one of the Pentastar's many collaboration projects with other automakers like Nissan. Regardless of whether ZF or Chrysler ends up owning the facility, the plant would still use the union workforce being abandoned from the soon-to-close Detroit Axle plant.
Giveth, and taketh away, isn't that always the story? On the taketh away side, GM has recently lost a serious chunk of change. On the giveth side, The General received a $56 milion package of tax credits and grants to keep an SUV factory open in Ohio. It has also just received another package of tax credits from the city of Flint, Michigan to aid its investment in a factory that will build engines for the new Volt and Chevy Cruze. Approved over some constituent disapproval by the Flint City Council, getting GM to build the factory there will keep 300 jobs in the city. GM is now looking to the state of Michigan for more tax incentives.



Presumptive Republican nominee for President, John McCain has wrapped up his tour and speaking engagement at General Motors, where the Arizona Senator discussed the U.S.'s current fuel situation and the proliferation of electric cars. Addressing the General's assembled workers, McCain said, "I would support tax credits for Americans who choose to buy the Volt and other automobiles that put us on track to energy independence." McCain later specified that the credit should be $5,000 as "an integral part of our ability to eliminate our dependence on foreign oil."
McCain has already issued his support for federal funding of research and development of battery-powered cars and made it clear that individual states should have the ability to set their own fuel economy standards.
