For a while now, I have been looking for an article on President Obama's stimulus plan. This article not only gave information about his stimulus plan, but was specific about different alternative energy grants and tax breaks.
Some of the features of the stimulus plan would benefit the development and use of electric cars.
For electric cars to really be green, they need to have clean sources of electric energy. I think some of the proposals for increasing solar and wind power would help renewable energy production. For solar energy, grants will be available instead of just a tax credit. These would offset 30% of the cost of installing a solar energy system at a business. Wind energy will keep receiving production tax credit through 2012. Wind energy developers also can obtain a 30% investment tax credit to offset the cost of installing a wind farm. These proposals could really help create renewable electric energy for uses like electric cars.
My research has shown electric energy delivery to homes and charging stations will have to improve. A significant amount of stimulus money will be used to improve our electric grid and the delivery of electricity. The fact that the government will fund 50% of the cost of smart-grid demonstrations projects and contribute $4.25 billion to build a grid that will shift power around the country, will really help deliver the electricity to the homes and businesses where it is needed. The Western Area Power Administration and the Bonneville Power Administration will also be able to borrow $3.25 billion each year to build transmission lines. I think these projects are essential for the country.
Some money will be used more directly to jumpstart electric car production and usage. There will be a tax credit of up to $7,500 for buying a plug-in hybrid electric car and a lower tax credit will be available to buyers of neighborhood electric cars, electric motorcycles and three-wheeled electric cars. I believe there should be an even greater tax credit for people to buy these relatively expensive cars. A larger tax credit would encourage more people to buy plug-in hybrids from Ford, GM, and Chrysler. This would keep more Americans working and paying taxes and keep these companies from going bankrupt. Selling more electric cars would also assist the companies in paying back the money they borrowed from the government.
Some additional stimulus money will be used for technology necessary for the transition to electric cars, including battery technology. There will be $2 billion in grants for manufacturing advanced batteries for cars and other devices in the United States. Batteries are probably the most critical element determining the success of the electric car. Progress in this area is absolutely essential. I think the range of these cars needs to be at least 200 miles per charge.
Obama's stimulus plan is a stimulus for the electric car, almost as much as it is for the national economy.
Monday, March 9, 2009
Obama Signs Stimulus Package (10)
This article at http://www.greentechmedia.com/articles/obama-signs-stimulus-package-5736.html gives information about different features of President Obama's $787 billion dollar stimulus plan.
A 30 percent investment tax credit will be available for companies that make equipment for renewable energy systems, energy storage equipment, smart grid, energy-efficient lighting, electric transmission and distribution and carbon capture and sequestration.
Here are some other provisions:
Solar: Grants will be available, instead of a tax credit, for offsetting 30 percent of the cost of installing a solar energy system at a business. Large-scale solar plants, often developed to sell power to utilities, also are eligible. This applies only to systems that are installed in 2009 and 2010. Projects that begin before the end of 2010 and put in service by Jan. 1, 2017 also qualify. The U.S. Department of Treasury will still need to work out the details of the program.
Wind: The production tax credit has been extended through 2012. Last October, Congress extended the credit by only one year. Wind energy developers also can opt for the 30 percent investment tax credit to offset the cost of installing a wind farm, instead of getting the production tax credit.
Businesses that operate small-wind projects can get a true 30 percent tax credit during the year the projects are put in service, instead of a tax credit that was capped at $4,000.
Smart Grid: The government could reimburse as much as 50 percent of the costs of carrying out smart grid demonstration projects. It also has set aside $4.5 billion for electric grid improvements, including the use of demand-response equipment; the money also will be used to carry out energy storage research and deployment.
Electric Transmission: The Western Area Power Administration and the Bonneville Power Administration will be able to borrow $3.25 billion each year to build transmission lines. The two federal organizations operate transmission systems that serve the western half of the United States.
Fuel-Efficient Cars: A tax credit of up to $7,500 for buying a plug-in hybrid electric car. The new law expands the previous legislation, making the tax credit available to 200,000 cars per manufacturer, instead of 250,000 for the whole car industry. A lower tax credit will be available to buyers of neighborhood electric cars, electric motorcycles and three-wheeled electric cars.
Alternative Fueling Stations: A 50 percent tax credit, instead of the previous 30 percent tax credit, for gas stations or other businesses that install alternative fueling pumps that dispense E85 fuel, electricity and natural gas. There is a cap of $50,000 per installation project. Hydrogen fueling stations would get the usual 30 percent tax credit, but the cap has been increased to $200,000 instead of $30,000. All these tax credit increases will be available only for installations that take place in 2009 and 2010.
Batteries: $2 billion in grants for manufacturing advanced batteries for cars and other devices in the United States.
A 30 percent investment tax credit will be available for companies that make equipment for renewable energy systems, energy storage equipment, smart grid, energy-efficient lighting, electric transmission and distribution and carbon capture and sequestration.
Here are some other provisions:
Solar: Grants will be available, instead of a tax credit, for offsetting 30 percent of the cost of installing a solar energy system at a business. Large-scale solar plants, often developed to sell power to utilities, also are eligible. This applies only to systems that are installed in 2009 and 2010. Projects that begin before the end of 2010 and put in service by Jan. 1, 2017 also qualify. The U.S. Department of Treasury will still need to work out the details of the program.
Wind: The production tax credit has been extended through 2012. Last October, Congress extended the credit by only one year. Wind energy developers also can opt for the 30 percent investment tax credit to offset the cost of installing a wind farm, instead of getting the production tax credit.
Businesses that operate small-wind projects can get a true 30 percent tax credit during the year the projects are put in service, instead of a tax credit that was capped at $4,000.
Smart Grid: The government could reimburse as much as 50 percent of the costs of carrying out smart grid demonstration projects. It also has set aside $4.5 billion for electric grid improvements, including the use of demand-response equipment; the money also will be used to carry out energy storage research and deployment.
Electric Transmission: The Western Area Power Administration and the Bonneville Power Administration will be able to borrow $3.25 billion each year to build transmission lines. The two federal organizations operate transmission systems that serve the western half of the United States.
Fuel-Efficient Cars: A tax credit of up to $7,500 for buying a plug-in hybrid electric car. The new law expands the previous legislation, making the tax credit available to 200,000 cars per manufacturer, instead of 250,000 for the whole car industry. A lower tax credit will be available to buyers of neighborhood electric cars, electric motorcycles and three-wheeled electric cars.
Alternative Fueling Stations: A 50 percent tax credit, instead of the previous 30 percent tax credit, for gas stations or other businesses that install alternative fueling pumps that dispense E85 fuel, electricity and natural gas. There is a cap of $50,000 per installation project. Hydrogen fueling stations would get the usual 30 percent tax credit, but the cap has been increased to $200,000 instead of $30,000. All these tax credit increases will be available only for installations that take place in 2009 and 2010.
Batteries: $2 billion in grants for manufacturing advanced batteries for cars and other devices in the United States.
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