The White House budget proposal for 2015 includes a stipulation to raise the current Federal tax credit for electric cars.
The Federal government currently offers a tax credit of $2,500 to $7,500 to buyers of new plug-in cars – electric vehicles and plug-in hybrids – but the proposed budget would increase the federal incentive to $10,000.
The new proposal also expands the credit to other type of green vehicles, like cars and trucks powered by natural gas.
Perhaps the most interesting point in the budget proposal is the conversion of the tax credit into a rebate applied before purchasing the vehicle.
This is President Obama’s second rodeo in proposing these savings, both have been denied previously.
Back in 2011, the Obama administration set a high goal: 1 million plug-in electric cars on U.S. roads by 2015. Through January 1st, 2015, the U.S. has around 280,000 plug-in electric cars. Sales of EVs and plug-in hybrid vehicles rose about 20 percent in 2014, to approximately 119,000.[Source: GreenCarReports]