June 19, 2007
U.S. senators introduce bill to help develop plug-in hybrids
Washington, D.C. – A new bill has been introduced by U.S. senators Maria Cantwell and Orrin Hatch, which will help develop commercially viable plug-in hybrids and other electric-drive vehicles.
“With the rapid industrialization of countries like India and China, the demand for gasoline is unprecedented, and that’s translated into higher costs at the pump,” Hatch says. “We’re already feeling the pain of that, and it’ll get worse unless we start shifting our transportation sector away from liquid fuels and on to electrons. The best way to motivate that shift is with these market-based incentives, rather than federal mandates.”
The bill would provide significant tax credits to consumers who purchase plug-in electric drive vehicles (PEDVs), which include pure battery electric, extended-range electric, plug-in hybrid electric, and plug-in fuel cell vehicles. For a limited time, there would also be a tax credit for consumers who convert their existing hybrid electric vehicles to high-quality plug-in hybrid vehicles.
The bill also provides tax credit incentives for the U.S. production of PEDVs and their dedicated parts, and to electric utilities to provide rebates to customers who purchase the vehicles. The incentives would be scaled to provide the largest incentives to utilities producing the greenest energy.