The Bush administration is keen to encourage more consumers to try electric hybrid vehicles, and is looking at offering tax credits as an incentive.
The Bush administration is keen to encourage more consumers to try electric hybrid vehicles, and is looking at offering tax credits as an incentive.
Bush had previously said that tax credits for advanced technology cars was not one of his priorities, but, he has since changed his mind. This could encourage Americans to move away from their much-loved fuel-guzzling sports-utility vehicles.
The plan is to offer a range of credits, depending on the vehicle’s fuel efficiency. The maximum credit would be offered only on a vehicle that gets at least 30 per cent of its power from its rechargeable batteries and has a fuel economy rating that is at least two and a half times that of a comparable petrol-only vehicle.
The administration has asked Congress to approve tax credits of up to R44 000 for buyers of hybrid-powered vehicles, and up to R88 000 for purchasers of fuel-cell-powered vehicles. The fuel-cell-powered vehicles are not on the market yet, but will be sold during this decade.
Manufacturers have welcomed the plan as hybrids are more expensive than normal cars and any incentive would help. "Tax credits are important to get consumers to adopt new technologies," said Eron Shosteck, spokesman for the Alliance of Automobile Manufacturers. "We’re gratified the administration is looking at tax credits," said Mike Morrissey of General Motors.
Electric hybrid vehicles are holding on to top place in the annual US survey of vehicle fuel efficiency. The Honda Insight managed 3,6 litres per 100 km in the annual survey of vehicle efficiency for 2002 models conducted by the Environmental Protection Agency and Department of Energy. The Insight retained the No 1 position for the third year in a row.
It was followed by Toyota’s Prius, which came in at 4,9 litres per 100 km.
