GM hasn't announced pricing on the Chevy Volt electric car, in part, because it is waiting for Congress to decide whether Volt buyers should qualify for a tax credit to help them offset the cost.  Yesterday, they got their answer.  Yes, Congress will provide tax rebates to Volt buyers.  But no, not the $7,500 tax break that GM had asked for.

Kicking Tires reports, "Buried in the bill that's popularly dubbed the Off-Shore Drilling Bill, or H.R. 6899, is a section that details a tax credit for 'New Qualified Plug-In Electric Drive Motor Vehicles.'  The credit kicks off at $3,000, and for every kilowatt hour of the battery over 5 kWh, it goes up $200, to a maximum of $5,000." 

No similar proposal has passed the Senate, and it isn't yet clear that President Bush would sign it if it did, so GM lobbyists have a long way to go in making the tax credit law. 

The Volt's battery is rated for about 16 kWh, so Volt buyers would be eligible for the full $5k.  The credit will apply to the first 60,000 Volts sold.  Since GM is planning to produce about 10,000 Volts in the car's first year, the credit should be available into the second year of the Volt's run. 

Current hybrid vehicles like the Toyota Prius, we should note, all produce 1.3 kWh or less -- so the credit would not apply to them.  It would apply to buyers of the $100,000 Tesla Roadster, with its 52.4 kWh, and to future electric vehicles produced by other manufacturers.

That fact has Toyota steaming.  Autoblog Green reports, "Toyota is preparing a statement for a congressional hearing on the progress of EVs, the results of which could influence legislation that gives a big $7,500 tax credit to any hybrid with a battery pack rated at 6 kilowatt-hours of electricity or more. Toyota argues that the legislation is too restrictive and redefines what a hybrid is since the only vehicle eligible (that we know about) would be the 2011 Chevy Volt with its 16 kilowatt-hour battery pack, though Toyota never calls out the series hybrid by name." 

Autoblog points out that "The plug-in tax credit would take effect after December 31st, 2008, though the first eligible vehicle won't be available for another two years."  Even that estimate depends on the Volt arriving on time -- something that isn't yet assured.

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