Monday, January 9, 2012

My Electric Car Tax Breaks -- Thanks!

I am very thankful for the attractive tax breaks I will be receiving for purchasing my Chevy Volt and installing a 240V charging station in my garage. The tax breaks are designed to help accelerate the rollout of Electric Cars, which are a clear way to lower the carbon footprint of many Americans. Also, driving a Chevy Volt significantly cuts down on the U.S. dependence on foreign oil that often comes from countries hostile to the U.S. Here are the tax breaks I will be receiving:

1. $7,500 Federal Tax credit for purchasing my Chevy Volt
2. $1,500 State Tax (Oregon) credit for purchasing my Chevy Volt
3. ~$2,000 for a 240V charger from Blink. The charger, I estimate it costs $800, plus $1,200 for installation are paid by Ecotality. Ecotality received a grant from the U.S. Department of Energy to study the effect of electric cars on the grid. To get the free charger, I have to sign an agreement stating I will let the system automatically upload my usage data for a few years.

Total Tax breaks = $11,000

Believe me, I pay my share of taxes. But the more important point is this pales in comparison with the massive tax subsidies for Oil and Gas. One study pegged the Oil and Gas subsidies to be over $10B per year ($70.2B over the 7 years from 2002 to 2008). More on this analysis can be seen here. I doubt the subsidies have lowered since the final year of the study -- 2008.

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