Thursday, September 07, 2006

Congress: Plug-in hybrids or extended tax credits for hybrids?

O.K., even oil man, President Bush, says we gotta end our foreign oil dependency, and I think the majority of Americans agree. Consequently, the big talk lately has focused on plug-in hybrid vehicles, and even the largest utility in California is now promoting plug-in technology (more).

I say, 'hold on'.

Plug-in hybrids are an excellent direction to push automotive technology towards, and getting the government involved is both wise and necessary. However, the current tax credit for hybrid vehicles is a far more important issue - for now.

Right now, the market for hybrid cars is dominated by the Toyota Prius. Yet, the Prius and every other Toyota are going to soon see smaller tax credits, quickly followed by no tax credits.

This is how Toyota is rewarded for doing the right thing? This is how consumers are rewarded for doing the right thing? But, back to plug-ins.

Plug-in hybrid technology just isn't cost-effective - at least not mentally - for most Americans. While the technology might pay for itself in the long run, Americans think about today, maybe tomorrow, not 7 years from now.

Plug-in hybrid technology just isn't there yet. Current hybrid vehicles are a hard enough sell for most with tax credits, but without.....?

That doesn't mean we shouldn't strive for plug-ins. We absolutely should strive for plug-in hybrid vehicles, and nothing pushes automobiles towards plug-in technology faster than current hybrid vehicles. The more current hybrids that sell, the faster plug-in hybrids will hit the market.

Plug-in hybrids are a great idea, a great idea that might never see the light of day if tax credits for hybrid vehicles are not extended.

Almost certainly, millions of small business owners have received far more tax incentives for buying gas-guzzling SUVs, so I think the government can afford tax incentives for foreign oil dependency fighting hybrid cars - even if they are Japanese.

Join our campaign for extending the tax credits on hybrid cars.

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