EDTA: Yes, federal tax incentives spur alt-fuel vehicle sales
You won't say it, but we will.
That's what the Electric Drive Transportation Association (EDTA) appears to be saying in a response to a Congressional Budget Office (CBO) report on electric-drive vehicle incentives and their effect on vehicle sales.
While the CBO report stayed away from estimating what percentage of plug-in purchases stemmed from federal tax incentives, the EDTA made sure to highlight the idea that "tax incentives can help move electric drive into the mainstream and reduce gasoline use and emissions."
The CBO said in a report released Thursday that the federal government will spend about $7.5 billion on policies that will promote electric-drive vehicles, and that about a quarter of that amount will go directly towards vehicle-purchase tax credits. The federal government gives a tax credit worth up to $7,500 to those who buy plug-ins such as the Nissan Leaf, Chevrolet Volt or Toyota Prius Plug-In.
Pro- and anti-alt-fuel vehicle incentive rhetoric is heating up in advance of November's presidential election. Earlier this month, the Carnegie Endowment published a paper saying that electric-drive vehicle sales momentum is dependent on federal and local government incentives. Meanwhile, publications such as Forbes have been slamming the federal government for providing direct and indirect financial support towards sales of the Chevrolet Volt, which the publication recently termed a "scam."
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