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Bigger electric car tax credits?

By Tara Baukus Mello ·
Saturday, March 31, 2012
Posted: 9 am ET

If you've been watching gas prices climb and thinking about buying an electric car to stop that sucking sound of the money rushing out of your wallet at the gas pump, then there may be additional incentives within the next year. Recently, President Barack Obama asked Congress to increase tax incentives for buyers of alternative-fuel cars and trucks.

The president proposed raising the current $7,500 tax credit for the purchased of a so-called advanced vehicle to $10,000 in a credit that would be applied upon purchase at the dealership. The credit would apply to electric cars as well as those powered by natural gas or hydrogen. Additionally, the president proposed giving commercial vehicle buyers who bought an electric or natural gas-powered commercial truck a 50 percent tax credit for half the additional cost over the gasoline equivalent.

The president's proposal comes at a time when the current administration has been criticized for rising gas costs, which currently average $3.92 per gallon of regular unleaded nationwide, a 20 cent increase from a month ago.

Tara Baukus Mello writes the cars blog as well as the weekly Driving for Dollars column, providing both practical financial advice for consumers as well as insight into the latest developments in the automotive world. Follow her on Facebook here or on Twitter @SheDrives.

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1 Comment
April 05, 2012 at 9:06 pm

that would be nice...