Congressional Budget Office Says More Electric Car Subsidies
Tax and rebate have helped many buy electric cars, but will more incentives drive a wider mass adoption of electric cars?
The Congressional Budget Office, CBO has recently released a report saying we need to more than double subsidies in order to make electric cars cost competitive.
The Congressional Budget Office estimates that federal policies to promote the manufacture and purchase of electric vehicles will have a budget of about $7.5 billion through 2019. One fourth of that budget goes to tax credits for buying electric vehicles, and according to the CBO are likely to have the greatest impact on vehicle sales. The CBO defines electric vehicles as Plug-in hybrid vehicles powered by an internal combustion engine that can run on gasoline or other fuel that feed an electric motor powered in part by an externally rechargeable battery, the rest is All-electric vehicles, also known as battery electric vehicles that run entirely on battery power.