Electric Drive Transportation Association was not happy with Congressional Budget Office’s report last week that federal tax incentives for consumers buying electric vehicles are a wasted effort. The EDTA statement made sure to highlight the idea that “tax incentives can help move electric drive into the mainstream and reduce gasoline use and emissions.”
CBO reported that the federal government will be spending about $7.5 billion on policies to promote EV sales, and about a quarter of that will go directly to vehicle-purchase tax credits, with the rest of it going to battery makers and to unpaid portions of the $25 billion in loans to manufacturers of advanced vehicles. The government offers up to $7,500 to consumers buying a plug-in, such as the Nissan Leaf, Chevy Volt, or Toyota Prius Plug-In. As the presidential election approaches, this topic is a good one for editorials supporting (such as a Carnegie Endowment published paper) and slamming the federal government (such as an article in Forbes).