President Barack Obama proposed expanded tax credits and community research grants to make alternative-energy cars and trucks more attractive to buyers. Electric, natural gas and hydrogen-powered vehicles would be covered by the plan, which Obama announced today in the battleground state of North Carolina. Click below to read the story.
Obama called on Congress to make two changes in tax law to coax drivers into less-polluting vehicles.
One would raise the tax credit to $10,000 from $7,500 for the purchase of a so-called advanced vehicle.
The credit would be applied instantly at the dealership.
The administration’s goal is to make electric vehicles as affordable and convenient as gasoline-powered vehicles by 2020.
But the proposal comes as some automakers struggle to sell models powered by alternative fuels. General Motors will idle a Michigan plant for 5 weeks starting this month because of growing stockpiles of the Chevrolet Volt, a gasoline-electric hybrid.
“We need to invest in the technology that will help us use less oil in our cars and our trucks, and our buildings, and our factories,” Obama said. “That’s the only solution to the challenge. Because as we start using less, that lowers the demand, prices come down. Pretty straightforward.”
The average retail price for a gallon of regular gasoline was $3.76 as of Tuesday, according to the American Automobile Association. That’s up from $3.51 a year ago.
