That is equal to about 2/3 of a gallon of gas.  A 25 mile range in an economy car.  

That battery capacity costs about 8000 bucks retail.  In nimh batteries for instance. Maybe 12,000 in lithium ion batteries.

So for an overpowered car like the Volt it's about right.  But it excludes real economy cars.  Hyperlight carbon fiber plugin hybrids for instance, that can go 40 miles on the 4kwh battery.

A car like that would get 15 miles from 3000 bucks worth of batteries.  Give these cars the 2500 break too, for their ultralight weight and their batteries, but lower that 4kwh limit.

This is good news though.  More, more!!

How about going to a per kwh used (as a substitute for gasoline) formula for subsidy?

http://amazngdrx.blogharbor.com/blog John Schneider, Northern Wisconsin

Bailouts are for the losers.

Plugins are already geriatric technology.

That's good news, but will plug-in-hybrids show up in dealer showrooms while I still have enough money left to buy one?

Solar John

It's good to see the most important renewable energy technology, biomass, receiving its credits too.

Of course, given the fact that biomass is by far already the largest and the most cost-effective of the renewables, it doesn't need that many incentives.

Still, it would be nice to treat technologies equally.

For these incentives to be fully effective, Congress also must address the Alternative Minimum Tax. Under current tax law, these credits will be reduced or eliminated for anyone subject to the AMT. Since this is not inflation indexed and adjusted only for the current year, almost everyone who can afford to buy a new car or install a geothermal system is potentially subject to AMT. Congress always acts on this to raise the exemption near the end of the year, too late to actually make these investments.

I'm ready to put in a geothermal system but will wait until I'm sure I'll get a tax credit. I bought a hybrid and lost the tax credit but I certainly will wait longer for a plug in if the tax credit is questionable.

I'm afraid that once the first plug-in hybrids are on the market, we'll see a glut of "hey, look at me, I'm a plug-in hybrid too!" cars that really don't do more than get you down the street without turning on the engine.  It's already happened with regular hybrids (example: GMC Yukon Hybrid SUV - 20mpg).

By setting a hard number (and an expensive one to reach, at that), they're promoting innovation - not just marketing.