Senate Finance Committee Markup Proposes Doubling PHEVs Eligible for Tax Credits to 500,000 Units
28 January 2009
A proposal in the stimulus package markup emerging from the US Senate Finance Committee modifies the plug-in electric drive motor vehicle credit by increasing the original 250,000 vehicle limitation to 500,000 four-wheeled units. It also modifies the definition of qualified plug-in electric drive motor vehicle to exclude low-speed vehicles.
The credit for light-duty PHEVs (up to 10,000 lbs.), with a minimum battery pack capacity of 4 kWh, ranges from $2,500 to $7,500.
This maximum amount increases to $10,000 for vehicles weighing more than 10,000 pounds but not more than 14,000 pounds, to $12,500 for vehicles weighing more than 14,000 pounds but not more than 26,000 pounds, and to $15,000 for vehicle weighing more than 26,000 pounds.
The proposal creates a new 10% credit for low-speed vehicles, motorcycles, and three-wheeled vehicles that would otherwise meet the criteria of a qualified plug-in electric drive motor vehicle but for the fact that they are low-speed vehicles or do not have at least four wheels. The maximum credit for such vehicles is $4,000.
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