The Industry
The era of electricity becoming a mainstream transportation fuel is imminent. Major automakers, including General Motors, Toyota, Ford, Mercedes, Volvo, BMW and Nissan are developing a new generation of energy efficient cars called Extended Range Electric Vehicles (EREV), plug-in hybrid electric vehicles (PHEVs), and all-battery electric vehicles (BEVs). voltIn addition, other car companies such as Tesla Motors are already shipping BEVs. General Motors, Toyota and Nissan have all
announced plans to have BEVs, EREVs or PHEVs available in 2010. All of these cars have one thing in common: They must all be recharged. They need to connect to the existing electric grid to recharge their batteries. Exclusively electric Plug-in vehicles are the next generation. The term “plug-in vehicles” refers to any vehicle that can be recharged from the electric grid. Today's hybrids offer efficiency of up to 60 miles per gallon; plug-in cars are projected to deliver 100-150 miles per gallon or better in an all electric operation.
U.S. Grants and Tax Initiatives
In an effort to reduce America’s dependence on foreign oil and to commit America to a clean environment, the United States Government is utilizing grants and tax incentives to jump start the EV industry, as listed below. We intend to utilize this unprecedented resource towards the expansion of our business. In September of 2008, Congress approved a $25 billion automotive retooling program earmarked for the electric car industry. The fact that the government is strongly committed in its support of the EV industry bolsters our work and increases confidence in our industry.
Alternative Fuel Vehicle Refueling Property Credit
- The Energy Policy Act (EP Act) of 2005 (Pub. L. No. 109-58, § 1342) provided an income tax credit equal to 30 percent of the cost of installing new alternative fuel vehicle refueling property at each location by the taxpayer but was limited to a maximum of $30,000 in the case of business property
- The American Recovery and Reinvestment Act (H.R.1) passed on February 10, 2009, increases the credit from 30% (capped at $30,000) to 50% (capped at $50,000) for business property placed in service in 2009 and 2010
- If the refueling property is acquired by a tax-exempt organization, governmental unit, or a foreign person or entity, and the use of that property is described in section 50(b)(3) or (4), the company that sold the fueling equipment can claim tax credit – but only if they provide the customer with written notification of the credit value
California Assembly Bill 118 (AB118)
- AB118 signed into law in 2007
- $120M/year available for clean fuels and vehicle technology to address climate change
- Funds will be distributed in May or June of 2009 through the California Energy Commission
Other Incentives
- Up to $7,500 Federal Tax Credit for purchase of new electric cars – based on battery size
- The U.S. stimulus package contains EV and infrastructure incentives