To reach that goal, the President will propose in his Budget a new effort to win the future by supporting advanced technology vehicle manufacturing and adoption in the U.S. through new consumer rebates, investments in R&D, and competitive programs to encourage communities that invest in advanced technology vehicle infrastructure.
- Making electric vehicles more affordable with a rebate up to $7,500: The President is proposing to transform the existing $7,500 tax credit for electric vehicles into a rebate that will be available to all consumers immediately at the point of sale.
- Advancing innovative technologies through new R&D investments: Building on Recovery Act investments, the President’s Budget proposes enhanced R&D investments in electric drive, batteries, and energy storage technologies.
- Rewarding communities that invest in electric vehicle infrastructure through competitive grants: To provide an incentive for communities to invest in EV infrastructure and remove regulatory barriers, the President is proposing a new initiative that will provide grants to up to 30 communities that are prioritizing advanced technology vehicle deployment. This approach builds on bipartisan ideas and proposals.
The President’s New Initiatives to Support Advanced Technology Vehicles
The President’s Budget proposes to make the United States the world’s leader in manufacturing and deploying next-generation vehicle technologies through three new initiatives, expanding funding for vehicle technologies by almost 90 percent to nearly $590 million and enhancing existing tax incentives:
- Making electric vehicles more affordable and accessible for American consumers: A transformation of the existing $7,500 tax credit into a rebate will give consumers the ability to receive this benefit at the point of sale, similar to “Cash for Clunkers”. The current individual credit will be reformed into a tax credit claimable by dealers or financers with clear transparency requirements to ensure the benefit of the credit is passed on to consumers.
- Advancing innovative vehicle and battery technologies through increased R&D: Increased investments in R&D will be critical to the deployment of new technology. ARRA and prior year investments are already making progress on advanced technology vehicles through research initiatives like an ARPA-E grant to develop a battery that will go 300 miles on a single charge. This year’s Budget will significantly broaden R&D investments in technologies like batteries and electric drives – including an over 30% increase in support for vehicle technology R&D and a new Energy Innovation Hub devoted to improving batteries and energy storage for vehicles and beyond.
- Rewarding communities for leadership in reducing regulatory barriers and developing comprehensive electric vehicle-friendly infrastructure: The Department of Energy is beginning a competitive program to help communities across the country become early adopters of electric vehicles through regulatory streamlining, infrastructure investments, vehicle fleet conversions, deployment of EV incentives (e.g., parking, HOV access) partnerships with major employers/retailers, and workforce training. The FY 2012 Budget will expand this initiative so that that up to 30 communities across the country would receive grants of up to $10 million each on the basis of their ability to demonstrate concrete reforms and use the funds to help catalyze electric vehicle deployment.
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