Obama seeks to raise subsidy for electric vehiclesFebruary 9, 2015
Increasing subsidy could make electric vehicles more attractive
President Barack Obama has petitioned Congress to raise the subsidies for electric vehicles, yet again. The President has sought to increase these subsidies for some time, but has been unsuccessful in his efforts, for the most part. Subsidies offered by the federal government have helped make electric vehicles more accessible, allowing a wider range of consumers to purchase these vehicles. By increasing the federal subsidies, electric vehicles may become more popular to consumers.
Obama aims to raise the current subsidy to $10,000, up from $7,500
The current subsidy for electric vehicles is set at $7,500. Many lawmakers suggest that this is a generous offering that has helped boost the adoption of clean vehicles. President Obama, however, wants to see the subsidy raised to $10,000. He also wants to make this money a point-of-rebate offering, rather than providing it as a tax credit. This could be a benefit for some electric vehicle owners that do not make enough money to take advantage of the existing tax credit offering.
Natural gas vehicles would also be supported through the expanded subsidy
The President also wants to expand the subsidy to include natural gas vehicles. These vehicles are beginning to gain more attention, and natural gas powers approximately 15.2 million vehicles globally. As the title suggests, these vehicles use natural gas, which is a type of fossil-fuel. Natural gas is harvested through a process known as hydraulic fracturing, which is somewhat environmentally hazardous. By expanding the subsidy to support natural gas vehicles, President Obama’s initiative may manage to find more support.
Some lawmakers are not interested in raising the subsidies that support the adoption of electric vehicles
Whether or not the effort will be successful has yet to be seen. Some lawmakers are not interested in supporting the adoption of electric vehicles through the expansion of the current subsidy. Some argue that increasing the subsidy will be financially irresponsible, though others claim that making electric vehicles more affordable will benefit the country in the long term.