Part of the Wall Street bailout bill that was passed today and signed by President Bush includes $1 billion in tax breaks for plug-in electric vehicles, reports the Detroit News.
The provision would grant all-electric vehicles or plug-in models with at least a four-kilowatt battery pack a $4,168 credit. The Chevrolet Volt, for example, has a 16-kwh battery and would qualify for the maximum $7,500 credit.
"We fully support the plug-in vehicle tax credit," said GM spokesman Greg Martin. "Consumer tax incentives are traditionally one of the most effective ways to accelerate early adoption of energy-saving technology."
Toyota also is happy about the tax breaks.
"We support consumer tax incentives in the early years for advanced technology vehicles, like hybrids and plug-ins, to help get the technology into the market as we work to refine the technology and reduce costs," said Toyota spokeswoman Martha Voss.