The current state of a typical rush hour in the states is bumper to bumper. The cars that you can see are overwhelming and you might get scared of getting caught in all the traffic. The abundant cars on the highways are one of the main contributors of the climate change problems and all the issues about air pollution especially the carbon dioxide emissions of petroleum powered cars. Americans are too dependent on oil that it increases not only the environmental problems but also the economical crisis.
This is the reason why the Clean Vehicle Rebate Project (CVRP) in California was formed. Funded with the total amount of $4.1 million, the rebate project was established to promote, fuel- cell vehicles, plug-in vehicles and zero-emissions vehicles (ZEV).
So that is why the US government is investing a lot of money in electric cars. Having an electric vehicle little by little replacing the internal combustion engines that are flooding the streets is a good start in cleaning up the environment.
Some people think it’s high time that the government will do something about it but are the people ready for that change? The first federal tax credit on electric vehicles is the Energy Improvement and Extension Act of 2008 and the latest is the American Recovery and Reinvestment Act of 2009 (ARRA).
These authorized tax credits are also for converted plug-ins, though it is lower compare to a new PEV. Plug-in electric conversion drive kits are also eligible for the 2009 ARRA tax credit that is equal to 10%. This credit will help the cost of conversion to a qualified PEV. Maximum tax credit is $4,000 and this will apply in service after February 17, 2009. Conversions after December 31, 2011 are not qualified for the funding.

The House of Representatives and the Senate are both proposing bills that can help motivate people to try electric cars and most environmentalists are happy with the content of that bill. The bills are suggesting that there should be 15 pilot communities for the assimilation of electric cars in the state. The chosen community’s residents will be eligible for up to $10,000 rebates on plug in vehicles and it could expand to other heavy duty vehicles like commercial SUVs and pickup trucks. And in the Senate’s bill there is a $1.5 million research fund for the development of a battery that could last up to 500 miles when fully charged. These funds are not just for big companies but also for small battery-makers who could improve the current battery technology.
Each pilot community will focus on different cars and not only passenger cars. The first 100,000 residents buying the electric cars in the pilot community will be eligible for $2,000 rebates and or other incentives like a tax credit up to $2,000 when purchasing. Also installing the charging equipment of the car will also help businesses to get up to $50,000 of tax credits when they buy and install charging stations. So isn’t it a sweet deal? Well, the two bills will also extend and increase the incentives of the car manufacturers and also the supporting infrastructures like charging stations. And also the charging equipment’s installations tax credit will be extended until 2017; the rise would also include half than third of the price of the equipments purchased.
Battery production is one of the concerns in the US if they want people to buy electric vehicles.

The poor battery technology is considered as an obstacle for the growing market of PEVs. With this reason the government is giving grants for battery makers to support the green movement. These companies include Ford that will receive nearly $100 million, $240 million grants for General Motors, $70 million grants for Chrysler and the biggest grant is for Johnson Controls for its production of lithium ion battery packs. These grants are given to make the US based battery makers keep up with their Asian counterparts.
According to an automotive analyst R.L Polk & Co. the sales of Plug-in Electric Vehicles (PEV) will be doubled by 2012 as the president himself announced a $2.4 billion grant for developing hybrid and EV companies.

The grants are not just for battery makers and EV manufacturers but also for universities. These educational institutions are provided with these grants to train the future generation engineers and consumers as well as to create awareness of the plug-in technology and fuel-cell vehicles.

Public transit grant is also available for any state and municipal government. The U.S. Department of Transportation is urging any government agencies to make use of the plug-in and hybrid technology in purchasing their public transportation. The funding is to help create the awareness on clean-fuels, hybrid electric system including its batteries and fuel cells. The President himself has proclaimed his new standards for fuel economy and has said that one million plug-ins of all kinds will be available by 2015 on all American roadways. The Obama administration has also set aside a whopping $2.8 billion of grants for the research and development of electric cars.

And not just that, the government is also offering a tax rebate of $2,500 to $7,500 to private buyers. These rebates are outright deduction of the vehicle cost that will help boost the PEV sales. The Plug-ins tax credit is worth $2,500 including $417 for each kilowatt-hour of battery capacity over 5 kwh. Part of the credit will be verified by the battery’s capacity that will not exceed to $5,000 which will bring a total credit of $7,500 for PEV.

Let’s be realistic here. Not all buyers can afford or have enough income to purchase an EV and with the rebate it will cut the purchase cost and make it reasonable for everyone. This direct purchase rebate will help jumpstart the country’s transition to zero-emission vehicles. EV vehicles that are under this rebate include the 2012 Nissan LEAF, 2011 Chevrolet Volt, Fisker Karma and Toyota’s Plug-In Hybrid the 2012 Prius.

The Nissan LEAF is one of the new PEVs that are eligible for the $7,500 tax credit while the Toyota Prius is qualified for a $2,500 tax credit due to its smaller battery capacity.
The President himself has proclaimed his new standards for fuel economy and has said that one million plug-ins of all kinds will be available by 2015 on all American roadways. The Obama administration has also set aside a whopping $2.8 billion of grants for the research and development of electric cars. The industry may have to supply the needed amount of batteries in the future to supply the demands for the upcoming rise of electric cars. Although there are still a long way to go for electric cars with their batteries and plug-in technology, there is a huge possibility that this may be a start of a new trend in protecting the environment.