The potential electric car charging infrastructure

Electric Vehicle charging station tax credits a victim of US Govt budget battles

The latest round of the U.S. Federal budget showdown was averted with the deal on the payroll tax cut, but there was collateral damage with dozens of tax credits that were not extended and are now expiring on Saturday, including three related to electric vehicles and several more related to biofuel production.

The electric car charging infrastructure is a key to the chicken-and-egg quandary for electric vehicle adoption. The increasing number of electric cars on the road, means potential businesses and jobs will be created to install and maintain the charging infrastructure. That is, if the pattern of electric car adoption proceeds without hitch. The last few weeks has seen another of the divisive ugly budget showdowns in Washington DC. This time a package of tax credits, including EV Charging Infrastructure credits, got caught up in the battle and now those credits are expiring on Saturday, December 31, 2011, threatening the nascent EV infrastructure businesses.

Every year sees a cluster of tax credits expire, and Congress routinely attaches tax credit extension provisions to bills they're working on to extend all or some of the expiring tax credits. This year is no different in that 65 individual tax credits were due to expire in 2011, the majority expiring on Saturday. One of those was the temporary payroll tax cut that got so much heat earlier this month. While that one got a two month extension, other provisions did not, and will expire in a couple days.

The specific tax credits affecting electric vehicles are

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Comments

Hi David, I thought the Electric Vehicle charging station tax credits were extended, but at a lower 30% level in the middle of December. I read about it at PluginCars. Is this not correct? In any case, do you think fewer people will buy electric cars if the tax credit is lowered?
That was an article from December 2010 about the extension for 2011. Now this tax credit is dead.

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