Obama budget funnels higher EV credit through dealers

Obama budget funnels higher EV credit through dealers

President Obamas budget would raise the maximum tax credit for buying an electric vehicle from $7,500 to $10,000 and channel it though the dealer. The dealer could then pass it on to the consumer at point of purchase, rather than the buyer having to wait for a credit in the next tax filing. The tax credit would cost up to $4.2 billion over 10 years, depending on sales, and would expire after 2021.

The Alliance of Automobile Manufacturers supports the tax credit as a helpful sales incentive. But NADA is troubled by all the questions such a program would raise. Its never been done before, said Bailey Wood of NADAs legislative office. Would you have to bring your 1090 form? How does it impact the AMT [alternative minimum tax]? What if the dealer doesnt qualify? What if the consumer doesnt qualify?

Were all for anything that incentivizes, but it needs to work in the showroom, and this doesnt. Wood also pointed out that in the unlikely event that such a proposal came before Congress, it would never pass the Republican-controlled House.

The presidents budget never becomes law. But it offers discussion points and is always studied and debated by members of Congress, whether they agree with it or not.

The budget also provides for more research and development for new battery technologies and manufacturing processes that would lower the cost of electric vehicles, increase their range and allow them to charge faster. Another $282 million would be allocated to develop cellulosic ethanol and other biofuels.

As part of Obamas push for more infrastructure spending, the budget proposes spending $50 billion on immediate road projects. But House Transportation and Infrastructure Committee Chairman Bill Shuster (R-Pa.) said the president had offered no way to pay for the proposal.

One of the most essential questions in this debate is how do we finance infrastructure maintenance and improvements without adding to our debt, Shuster told thehill.com.

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