Plug-In Hybrid Vehicle Credits Sweeten Bailout Bill

11/02/2008 05:12 am ET | Updated May 25, 2011

The original "bailout plan" by Treasury Secretary Paulson was 3 pages long. The Senate version that was passed last night (H.R. 1424) is now 451 pages long and it has "sweeteners" for everybody and their dogs.

PHEV Credit
One of those is a plug-in hybrid vehicle tax credit that was probably first seen in some GM wet dream: "The credit is a base $2,500 plus $417 for each kWh of battery pack capacity in excess of 4 kWh, to a maximum of $7,500 for light-duty vehicles," up to $15,000 for vehicles weighting more than 26,000 pounds. Because the Chevy Volt has a 16-kWh battery pack, it would get the maximum credit.

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