Electric Cars Get Boost From Obama Budget

Electric car buyers would immediately qualify for up to $7,500 rebate rather than having to wait to file for federal tax credit.

Published: 15-Feb-2011

NEW YORK (CNNMoney) -- In its effort to put 1 million electric cars on the road by 2015, the Obama administration's proposed budget supports a plan to give $7,500 directly to electric car buyers rather than make them wait for a tax credit.

Under the "Charging America Forward" act, put forward by Democratic Sen. Debbie Stabenow of Michigan, auto dealers and finance companies would give customers a simple on-the-spot discount, then get reimbursed later by the government.

A tax credit for plug-in vehicles already exists but, as it stands now, car buyers have to wait until tax time to get that money back. Consumers buying qualifying plug-in cars are eligible for a tax credit of between $2,500 and $7,500 depending on the size of the vehicle's battery pack.


President Obama tours plant in Wisconsin after 2011 State of the Union address.

President Obama challenges the nation to be first to put 1 million electric cars on the road by 2015


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