According to the Congressional Budget Office’s presentation at this year’s Energy Information Administration conference, which took place on June 24th, based on the 2011 prices, the tax credits offered by the government could not offset the higher lifetime cost of EVs compared with the gasoline-fueled cars.
The government is currently offering subsidies on purchases of EVs and hybrids, which are fitted with an externally charged battery which can be powered by gasoline. The subsidy can be between $2,500 and $7,500 in tax credits, and depends on the battery’s capacity. The report also says that the federal tax credit should see a boost for the EVs to be as cost effective as traditional vehicles.
Read Article