If the idea a Chevrolet Volt that can wean you off buying gas during your 40 mile round-trip commute has piqued your interest, but the thought of it costing your $40,000 has left you with some sticker shock, there is some good news. Buried in the recently passed $700 Billion bailout/stimulus (depending on your point of view) package was $1 Billion (over 10 years) in funding for a consumer tax credit of up to $7,500 for plug-in and fully electric vehicles.

 

The tax credit will vary from $2,500 to a maximum $7,500. In order to qualify, a plug-in hybrid would be required to have a battery capacity of at least 4kWh. For each additional kWh of battery capacity, the credit goes up $200. The Chevrolet Volt, with a battery capacity of 16kWh, would quality for the maximum credit of $7,500.

 

With a $7,500 tax credit, along with other state and local tax incentives, the price of a Volt, and other future plug-in hybrids, could become a lot more palatable to more potential buyers.