Electric Cars: Obama Wants To Give $7,500 Rebates To Get To 1 Million by 2015

The Obama Administration wants to initiate a $7,500 rebate for electric cars, according to the Detroit Free Press.

This would be instead of a tax credit, and a $200 million grant program for communities for electric vehicle infrastructure. Apparently this proposal will be included in Obama’s budget, and of course will need to be stamped by Congress.

Currently, people who buy an electric car qualify for a $7,500 tax credit in the next year. The new rebate system would reduce the price of buying the car.

As stated in Obama’s State Of The Union address, the Administration’s aim is to put one million electric cars on the road by 2015. Obama first voiced his aim of getting a million electric cars on the road as far back as during his presidential campaign.

The proposal excludes conventional hybrid vehicles, such as the Toyota Prius and Ford Fusion hybrid, which automakers can already make at competitive prices without government incentives.

Including conventional hybrids, only around 250,000, or 2.4% of the 11.6 million cars and trucks sold in the U.S. in 2010 were hybrid, plug-in or electric vehicles.

The Obama Administration is also seeking to raise federal subsidies for vehicle technologies nearly 90% to $590 million.

Vice President Joe Biden stated,

“We’re going to have batteries that go 300 miles on a charge, with 10 bucks of electricity instead of 50 bucks”

Would you consider buying a fully electric car if you got this $7,500 rebate, instead of a tax credit, or would it not make much difference to you?

Chevrolet Volt image CC licensed by 246-You