The U.S. government has pushed automakers hard on the issue of reducing their fleets average fuel consumption and CO2 emissions – and even though it made some concessions, it eventually won their support.
What’s surprising is the fact that during a time that many plug-in hybrid or pure electrical vehicles are ready to enter the North American market, the government has decided to let the tax credit for installing home as well as commercial charging equipment expire on Sunday, January 1, 2012.
According to the IRS, the government subsidy deducted 30 percent of the cost of EV chargers installed in homes up to US$1,000, while on commercial units the tax break was up to US$30,000.
Genevieve Cullen, president of the Electric Drive Transportation Association trade group for the electric vehicle industry, told USA Today: “The timing couldn’t be more unfortunate.” Tom Saxon of Plug In America joins in, stating that “the credit create a growth opportunity for a new industry”.
On the other hand, the US$7,500 government subsidy for new EVs will continue.
GM spokesman Rob Peterson commented that the end of the tax credit will have “minimal impact” on sales of the Chevrolet Volt, since almost 40 percent of its owners use their garages’ 110-Volt chargers anyway instead of the faster, but costlier, 220-Volt fast chargers.
The good news for current or future EV / plug-in car owners comes for the Energy Department as it announced that it has granted US$7 million to four companies to develop a new, low-cost charger that will halve the cost of home charging.
