Congress Proposes a $10K Incentive to Chevy Volt and Nissan Leaf Buyers in Select Cities

Congress Proposes a $10K Incentive to Chevy Volt and Nissan Leaf Buyers in Select Cities

Congress is considering giving buyers of the Chevrolet Volt and Nissan Leaf a $10,000 federal tax credit in some cities as part of a $10 billion plan to boost electric vehicles.

The House and Senate have slightly different versions of the incentive plan but the general aim is to create a viable and sustainable market for the vehicles.

The House version would dedicate $800 million to five “deployment communities” to speed 700,000 plug-in vehicles into use and establish recharging networks. The Senate version would spend about $10 million in up to 15 communities and extend the current $7,500 tax credit for 200,000 plug-in vehicles per manufacturer to 300,000. It would also raise the credit to $10,000 in those 15 communities.

The Senate bill also creates a $10 million prize for the first manufacturer of a battery with a range of 500 miles on a single charge and both bills set aside billions for battery research.

The Senate bill would require that one of the 15 deployment communities be a rural area of fewer than 125,000 people and would “reflect diverse populations” and geography.

The legislation is likely to be taken up after the Congressional summer recess.