Fixing the Federal EV Tax Credit Flaws: Redesigning the Vehicle Credit Formula

EV Adoption

The Qualified Plug-In Electric Drive Motor Vehicles (IRC 30D) tax credit – commonly referred to as the “Federal EV tax credit” has a number of flaws, but one of the biggest is the poorly-designed formula that determines the amount of the tax credit available for each BEV and PHEV sold in the US.

Volvo C40 Recharge EV coming to US with $58,750 MSRP

Green Car Congress

The Volvo C40 Recharge pure electric will start at an MSRP of $58,750 in the United States before tax credits. The C40 Recharge, along with the 2022 XC40 Recharge, introduces new specification level nomenclature: Plus and Ultimate.


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Volvo XC40 Recharge EV to start at $53,990 in US before qualifying tax incentives

Green Car Congress

The Volvo XC40 Recharge, the company’s first fully electric vehicle, will carry an MSRP of $53,990 when it arrives in US showrooms later this year. The purchase of an XC40 Recharge may qualify for a federal tax credit of up to $7,500.

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Rechargeable Zinc-Air Battery Company Approved to Receive $6.8M in Loans and Tax Credits from the State of Oregon and City of Portland

Green Car Congress

ReVolt Technology, LLC, a company that is developing rechargeable zinc-air batteries ( earlier post ), has been approved to receive a package of loans and tax credits from Oregon and Portland authorities totaling approximately $6.8 Under ARPA-E’s “Batteries for Electrical Energy Storage in Transportation” (BEEST) program, ReVolt will develop a powerful, safe and environmentally-sustainable rechargeable zinc-air battery system for electric vehicle applications.

Volvo XC40 Recharge arrives in early 2021, starts at $54,895

Green Car Reports

Volvo on Wednesday announced United States pricing for the XC40 Recharge electric crossover—its first mass-market electric car.

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Volvo XC40 Recharge and Polestar 2: EV cousins offer different takes on “premium”


It’s called the XC40 Recharge, and the earliest versions aren’t cheap, priced from about $55,000 including delivery. Volvo XC40 Recharge Volvo XC40 Recharge Volvo XC40 Recharge Volvo XC40 Recharge Volvo XC40 Recharge Volvo XC40 Recharge Volvo XC40 Recharge.

Jeep partnering with Electrify America to install chargers at select trailheads

Green Car Congress

With Level 2 charging, the 17 kWh battery pack in the Jeep Wrangler 4xe can be fully recharged in about two hours. Recharge times will be shorter for Wrangler 4xe owners looking to just top off the battery pack before heading out on the trail.

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2020 MINI Cooper SE EV comes to US with MSRP of $29,900

Green Car Congress

While the MINI Cooper SE has an MSRP of $29,900, federal tax credits and state electric vehicle tax credits make the MINI Cooper SE even more attractive. The MINI Cooper SE comes standard with a two-mode regenerative braking system to help maximize the recharging of the battery while meeting personal driving style preferences.

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EV Life Product Updates – August 2020

EV Life

See how your EV would recharge on your next road trip. What cars get the federal tax credit, state rebates, and carpool lane stickers?

2020 80

Chevrolet cuts price on Spark EV; with incentives and “bonus cash”, as low as $14,995

Green Car Congress

Depending on an individual’s tax situation, the Spark EV ( earlier post ) is eligible for federal tax credit up to $7,500. California and Maryland Spark EV owners may also qualify for a $2,500 California state rebate or $2,300 Maryland excise tax exemption. After full federal and state tax credits and Chevrolet bonus cash, the Spark EV could be as low as $14,995.

2015 195

2016 Audi A3 Sportback e-tron PHEV starting at $37,900 in US

Green Car Congress

Purchasing customers may qualify for applicable state and federal incentives and tax credits. Audi expects the PHEV to qualify for a federal tax credit of $4,168. Tax credits and incentives are subject to availability, and customers should consult their tax professionals and for more information about tax credits and incentives. Recharging through a 120-volt outlet takes approximately 8 hours.

2015 197

Chevrolet to begin selling Spark EV in Maryland

Green Car Congress

Spark EV is priced as low as $17,845, after federal and Maryland tax credits, and it features a locally sourced electric motor and drive unit, manufactured at General Motors’ Baltimore Operations facility in White Marsh, Md. Three available levels of recharging capability include the industry’s first use of the recently approved SAE combo charger for DC fast charging, which charges 80% of the battery in just 20 minutes.

2021 Jeep Wrangler 4xe: The legendary SUV brand’s first plug-in hybrid


The e-motor also provides regenerative braking to recharge the battery, and there’s an integrated 33 kW (44 hp) starter-generator as well. The e-Save button also toggles to invoke Battery Charge, which recharges the pack using engine power.

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8 ZEV states announce US ZEV sales top 260,000 units

Green Car Congress

The 8 ZEV states are working together to develop incentives to encourage consumers and businesses to purchase ZEVs, as well as collaborating to streamline codes and regulations dealing with recharging and refueling infrastructure. Since signing the MOU, Massachusetts has launched two new financial incentive programs to spur sales of ZEVs and installation of recharging stations.

2014 228

EPA rating for 85 kWh Tesla Model S: 89 MPGe, 265-mile range

Green Car Congress

EPA-rated power consumption for the 85 kWh model (with a starting price of $69,900 after the $7,500 federal tax credit) is 38 kWh/100 miles combined (38 kWh city, 37 kWh highway). 20 kW capable), Model S can be recharged at the rate of 62 miles of range per hour. The EPA has rated the Tesla Model S luxury EV equipped with the 85 kWh pack at 89 MPGe combined (88 MPGe city, 90 MPGe highway), with a range per charge of 265 miles.

2012 224

Mercedes-Benz B-Class Electric Drive priced at $41,450 for US; 85-mile range

Green Car Congress

Customers may be eligible for federal tax credits (which run up to $7,500) or state/local tax credits. In addition, the planned route can be displayed, showing where the vehicle can be recharged along the way, should this prove necessary. The MY14 B-Class Electric Drive. Click to enlarge.

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Chevrolet Spark EV to lease for as low as $199 per month; MSRP $27,945 pre-incentives

Green Car Congress

Chevrolet announced a low-mileage lease on the new 2014 Spark EV 1LT ( earlier post ) for as low as $199 per month for 36 months, with $999 due at lease signing including security deposit (tax, title, license dealer fees extra), making the vehicle one of the most affordable EVs on the market. With the full Federal tax credit, the net price of the Spark EV could be as low as $19,995, including $810 destination freight charge. Spark EV. Click to enlarge.

2013 261

Volvo To Go All Electric By 2030 – EV Week in Review: Feb 23-Mar 1

EV Adoption

Volvo reveals C40 Recharge “SUV coupe” – Volvo revealed its new C40 Recharge “SUV coupe” which according to the company “has all the benefits of an SUV but with a lower and sleeker design.”

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Zinc-Air Battery Company ReVolt Applying for $30M in Recovery Act Funds; Targeting EV Applications

Green Car Congress

ReVolt Technology, LLC, a spin-off from Norway’s SINTEF that is developing rechargeable zinc-air batteries ( earlier post ), is applying for $30 million in grants from US Department of Energy (DOE) under the American Reinvestment and Recovery Act to accelerate the commercialization of large format zinc-air batteries for energy storage and electric vehicle applications.

Tesla Takes 520 Reservations for Model S in a Week

Green Car Congress

The Model S can be recharged from any 120V, 208V or 240V outlet or quick-charged from an external direct current supply in 45 minutes. The anticipated base price of the Model S is $49,900 after a federal tax credit of $7,500. The base price of the Roadster is $101,500 after a $7,500 federal tax credit.

2009 163

Nissan Leaf – Taking Reservations

Revenge of the Electric Car

After a federal tax credit and state rebate, the price of these cars will come out at around a cool 20k. The Leaf’s suggested retail price of $32,780 drops to $25,280 after a $7,500 federal income tax credit. A top concern is “range anxiety&# because electric vehicles can travel a limited number of miles before needing to be recharged. The Leaf’s suggested retail price of $32,780 drops to $25,280 after a $7,500 federal income tax credit.

2010 140

Tesla Unveils Model S Electric Sedan

Green Car Congress

The Model S will carry an initial price of $57,400; applying the new $7,500 Federal tax credit for plug-ins will drop the effective price to $49,900. Tesla says that rapid charging will recharge the battery pack in 45 minutes. Tesla Motors Inc. unveiled its long-anticipated second model, the four-door Model S battery-electric sedan.

2009 174

2017 Chrysler Pacifica Hybrid PHEV minivan EPA-rated at 84 MPGe in electric-only mode; role of eFlite dual-motor/one-way clutch strategy

Green Car Congress

A large share of credit goes to the vehicle’s eFlite dual-motor electrically variable transmission (EVT). The battery pack, covered by up to a 10-year/150,000-mile transferable warranty, may be fully recharged via the 6.6-kWh on-board charger in as little as two hours using a 240-volt (Level 2) charger, available from Mopar through dealers. With a 120-volt (Level 1) charger, which comes standard with the vehicle, the Pacifica Hybrid can be fully recharged in approximately 14 hours.

2016 228

Cadillac boosts performance of ELR plug-in hybrid for MY2016, cuts MSRP by $9K; $58,495 net after Fed credits

Green Car Congress

Cadillac has greatly enhanced the performance of its ELR extended range electric vehicle (plug-in hybrid) ( earlier post ) for the 2016 model year, and is also cutting the MSRP by $9,005, bringing the starting price down to $58,495 net after the $7,500 US federal tax credit (MSRP = $65,995). MSRP for MY2014 was $75,000, with a net price of $67,500 after the Federal credit.

2015 240

An iconic sedan gets electrified: the BMW 330e PHEV offers 22 e-miles

Current EV

Tax credits are another great reason to drive a hybrid or PHEV. The 2021 330e qualifies for a $5,836 federal tax credit. BMW’s announcement in 2017 that it had decided to make EV and plug-in variants of every single BMW and MINI model was met with some skepticism.

2020 52

Road Test: 2021 Kia Niro PHEV EX Premium

Clean Fleet Report

The Niro PHEV qualifies for federal tax credits and state rebates, and in some states, is eligible for a HOV sticker. Road Test: 2021 Volvo SC90 Recharge PHEV. A Winning Formula. Story by John Faulkner. Photos by John Faulkner and Kia.

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BMW’s 2021 luxury sedan, the 745e PHEV, comes with 16 pure-electric miles

Current EV

Using electric power only, the car will take you 16 miles before the 12.0kWh Lithium-ion battery needs to be recharged. A Federal Tax Credit will knock off $5,836. The BMW 7 Series is a full-size luxury sedan which has been produced by the German automaker since 1977.

2020 52

First Drive: 2016 Hyundai Sonata PHEV and HEV

Green Car Congress

kWh Li-ion polymer that can recharge in less than three hours with a Level-Two charger. Sonata Plug-in Hybrid buyers will be eligible for a $2,500 fixed federal tax credit and a variable federal tax credit based on battery capacity that will also be over $2,000. Recharge time ranges from less than three hours at a 240V Level-Two charging station to less than nine hours using a standard 120V outlet.

2015 220

Education key in WM Motor’s plan to create a second-hand EV trading platform

China EV

BEVs can qualify for up to $7,500 in federal tax credits. Some consumers who have bought second-hand EVs reportedly had a lot of trouble recharging because they weren’t allowed to install chargers at their place of residence, or other road blocks.

2019 52

Road Test: 2021 Chrysler Pacifica Plug-in Hybrid

Clean Fleet Report

The Pacifica Hybrid has a regenerative braking system, which recharges the 16-kilowatt-hour (kWh) lithium-ion (li-ion) battery. So driving around town, stuck in stop-and-go rush hour highway traffic, or coasting down hills recharges the battery. Impressive Efficiency. Impressive Luxury.

What Does GM’s “30 New EVs By 2025” Promise Mean for the US Market?

EV Adoption

In the 12 months since sharing the forecast below, multiple new crossover/SUV EVs including the Mustang Mach-E, Volvo EC40 Recharge, Polestar 2, Tesla Model Y Standard Range, Nissan Ariya, VW ID.4, Under promise, over deliver.

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Hyundai introduces 2018 Sonata Hybrid and Plug-in Hybrid models at Chicago Auto Show

Green Car Congress

Sonata Plug-in Hybrid buyers are currently eligible for a $4,919 federal tax credit. km), and it can recharge in less than three hours with a level-two charger. Hyundai unveiled the redesigned 2018 Sonata Hybrid and Plug-in Hybrid models at the Chicago Auto Show.

2018 195

Are You Plugged In?

Revenge of the Electric Car

Plug-in hybrids differ from hybrids on the road today in that they can go longer distances on battery power and can be recharged via electrical outlets. All will qualify for a $7,500 federal tax credit. The Think City, a two-seater with optional back seats for children, can travel at speeds of up to 60 miles per hour and go as far as 100 miles per charge, but it is also the most expensive, at about $37,500 before a tax credit.

2010 126

How the EV Charging Industry Is Emerging and Evolving

EV Connect

Newer, direct-current, fast-charging technology now makes it possible to recharge 60- to 80-miles worth of driving in 20 minutes. Most of the time, evolution moves slowly. But sometimes it’s lightning-fast.

2020 52


Revenge of the Electric Car

From the article: ‘The New York study anticipates that by 2015, electric vehicle prices should decline because of reduced battery costs, that there will be a sufficient supply of electric vehicles to purchase, and that consumers will take advantage of the existing federal tax credit of $7,500 for new electric cars. Instead, while you recharge your battery after a long day at work, your new electric car could be recharging as well.

2010 144

Nissan Promises EV for 2010

Revenge of the Electric Car

Regardless, once the $7,500 tax credit is accounted for, and the much lower maintenance costs, these should be about the same as buying a gas car, only the fuel will be less than a dollar a gallon equivalent. The Nissan official said that while the cost for a conventional vehicle of similar size may range from $28,000 to $30,000, the federal government is offering a tax credit of up to $7,500 on the electric. Nissan is a first tier OEM building a pure EV in the U.S. -

2010 133

Expert panel report finds achieving 1M plug-in vehicles in US by 2015 would require concentrated action to overcome barriers

Green Car Congress

These policies include generous tax credits for consumers and producers, new regulations of vehicle manufacturers, special access to high occupancy vehicle (HOV) lanes and city parking, loan guarantees and subsidies for companies in the PEV industry, grants for recharging infrastructure, and federal R&D support for more advanced battery technologies. Recharging Infrastructure. Support for Recharging Infrastructure.

2011 195

First drive: US spec Audi A3 Sportback e-tron plug-in hybrid; 83-86 MPGe with 16-17 mile EV range

Green Car Congress

240-volt charging replenishes the battery in about 2 hours and 15 minutes; recharging through a 120-volt outlet takes approximately 8 hours. Charge Battery mode uses the gasoline engine to recharge the battery while driving at highway speed. Purchasing customers may qualify for applicable state and federal incentives and tax credits (e.g., federal tax credit of $4,168).

2015 235

Revolt makes bid for $30million grant

Green Cars News

Switzerland based ReVolt Technology, a spin-off from Norway’s SINTEF, is developing rechargeable zinc-air batteries and wants $30million in grants from the US Department of Energy to accelerate their commercialisation for both energy storage and electric vehicle applications. By locating in the US state it becomes eligible to apply for Business Energy Tax Credits from the Oregon Department of Energy for battery research and production.

Georgia Tech study finds MD electric urban delivery trucks have cost advantages over diesel in some conditions; relative benefits depend on numerous factors

Green Car Congress

Credit: ACS, Lee et al. In a paper published in the ACS journal Environmental Science & Technology , they report that the relative benefits of electric trucks depend heavily on vehicle efficiency associated with drive cycle; diesel fuel price; travel demand; electric drive battery replacement and price; electricity generation and transmission efficiency; electric truck recharging infrastructure; and purchase price. Credit: ACS, Lee et al. Credit: ACS, Lee et al.

2013 228

Ford and Edison

Plug In Partners

Ford, utility join to promote plug-in vehicles Reuters India Sat Jul 7, 2007 DETROIT (Reuters) - Ford Motor Co and power utility Southern California Edison will announce an unusual alliance on Monday aimed at clearing the way for a new generation of rechargeable electric cars, the companies said. SCE has said that its existing power-generation facilities would be capable of supplying millions of vehicles if they were recharged at night when demand is low.

2007 100

OECD paper presents and analyzes policies and programs to foster market growth of green cars

Green Car Congress

These measures can address this barrier by (i) raising the price of the most polluting and energy-inefficient vehicles, e.g. through taxation, or (ii) by lowering the price of cleaner fuels and propulsion technologies, e.g. through tax credits and direct subsidies. Tax credits and subsidies may end up being highly regressive, and only reward those who need them the least. Timing and sequencing of energy technology policy. Source: OECD. Click to enlarge.

2012 290

Software Upgrade to Prius PHEV NiMH Conversion Kit Enables All-Electric Driving At Up to 70mph

Green Car Congress

PICC’s existing conversion kit allows Prius owners to recharge their vehicles in six hours using a regular 120-volt outlet, or in as little as two hours with an optional high-capacity charger. The company also intends to complete crash testing of PICC-converted vehicles so that future owners can qualify for green-vehicle tax credits. Poway, California-based Plug In Conversions Corp. PICC) has completed a software upgrade to its 6.1

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