President Barack Obama wants to turn on the electric vehicle market and is proposing a significant increase in the already sizable tax credit available to buyers of battery cars and plug-in hybrids.
As part of his latest budget proposal, the President has proposed increasing the current $7,500 tax credit – available for vehicles like the Nissan Leaf and Chevrolet Volt – to $10,000 with the goal of boosting demand for the high-mileage vehicles.
The Obama Administration has strongly backed the push for electric propulsion – which many experts believe will be essential to meet the strict fuel economy mandates set to go into place in 2025.
But despite following through on a State-of-the-Union promise to also include $4 billion in new subsidies for the oil and gas industries, the overall budget proposal appears to have little chance of passage, at least without significant changes. Senate Minority Leader Mitch McConnell, a Kentucky Republican, denounced the Obama budget as little more than a “campaign document.”