Part of the budget includes increasing the tax credit for EVs and plug-in hybrids from the current maximum of $7,500 up to $10,000, according to The Detroit News. To make things even more enticing, the White House wants to convert the subsidy to an immediate rebate on the efficient models. That means the money would be slashed off the price during the purchase, rather than being recouped during tax season. Additionally, the proposed plan would broaden the incentive’s scope to more green models, like compressed-natural-gas fueled vehicles. President Obama has pushed for these initiatives in the past but to no avail.
According to Grist, the expansion of these tax subsidies is just part of the White House’s plan of environmentally friendly measures. Other portions of the budget include provisions to incentivize states to reduce greenhouse gas emissions, offer tax credits to solar and wind energy producers and increase research into renewable forms of power.
Keep in mind, all of these ideas are just proposals in the budget for now. The financial plan still has to make it through the Republican-controlled Congress to actually go into effect. It seems unlikely that any part of the President’s entire plan to become law without some serious compromises, if they make it at all.
