How people and politicians play politics with plug-in cars

How people and politicians play politics with plug-in cars:
Filed under: EV/Plug-in, Hybrid, AutoblogGreen Exclusive, Legislation and Policy, USA




In a U.S. presidential election season, anything can become political. Remember the height of trees in Michigan? Well, when you're dealing with such a barrage, it's sometimes good to remember that plug-in cars have been political for a long time and, despite some politicians best efforts, progress will continue.



Still, it's sometimes enlightening to take a look at how the debate over plug-in cars - which you would think would be a non-partisan issue - is being waged, especially the two biggest right-wing punching bags: the Chevrolet Volt and the Fisker Karma. There are plenty of examples conservative attacks on green cars in our archives (see here and here and here) but they quieted down earlier this year after some conservative push-back from people like Bob Lutz. Now, the attacks are back.

We don't agree that the government should, "repeal the costly EV tax credits that do little to help with foreign oil dependence and only further enrich already wealthy electric car buyers."

First, the Volt. Last month, Chevy started offering long-term "test-drives" of a sort for new buyers, the Chevy Confidence program, which allows buyers to have a new car for up to 60 days, including the Volt. Unsurprisingly, cries of tax credit abuse quickly rose from the same voices that have been attacking the Volt for ages. Namely, the National Legal and Policy Center's Mark Modica, who published an article called "Chevy Volt 60-Day Return Makes Tax Credit Abuse Likely." Not "reported," just likely, which is interesting. Modica describes a way for people to buy a Volt, submit the paperwork for the $7,500 federal tax credit, then return it after 59 days. The "buyer" would get the federal cash, GM would be stuck with a used Volt, and the taxpayers are on the hook. We don't agree with Modica that the government should, "repeal the costly EV tax credits that do little to help with foreign oil dependence and only further enrich already wealthy electric car buyers" but his suggestion that, "The IRS should also consider a minimum term of ownership for buyers of plug-in vehicles to qualify for tax credits" has merit.



We tried to get the IRS to clarify if the Confidence program could be abused in this way, but have not heard back. The terms and conditions of the Chevy Confidence program say, "You may be subject to federal, state, or local tax on any benefit paid." The small print on the TV ads say "Not available with some other offers." So, we're not sure if Modica is right, but we do know that his anti-Volt barrage got him invited onto Fox News to talk about "the Chevy Volt village" aka the Pecan Street Partnership (see inflammatory video below).
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How people and politicians play politics with plug-in cars originally appeared on AutoblogGreen on Wed, 15 Aug 2012 12:10:00 EST. Please see our terms for use of feeds.

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