No Tax Incentives for Cleantech

Count me among those not in favor of ANY tax incentives for hybrid or plug-in vehicles. While good intentioned, the only certainty is that they artificially inflate the price of vehicles and do so on the backs of taxpayers. Basically what happens is that auto manufacturers manufacture scarcity in order to ensure profit margins price points, then use the “well you are getting $x thousand back as a tax incentive” as part of their sales pitch.

Auto manufacturers use the argument that they are selling these vehicles at a loss in order to achieve manufacturing volume efficiencies. Bullshit, if they aren’t willing to absorb the loss in order to get to profitable manufacturing scale then stay out of the business altogether instead of asking taxpayers for a handout. I’d rather not see my tax dollars lining the pockets of car companies through the offsetting nature of tax incentives (consumer gets a tax incentive, business gets to charge higher prices).

BTW, I still want one.

General Motors is lobbying for a $7,000 tax credit for buyers of the $30,000 $40,000 2011 Chevy Volt — more than double that originally offered for Prius buyers. The automaker’s arguing the credit should be based on battery capacity. “What we favor is actually a sliding scale depending on how much battery you have on board,” said Jon Lauckner, GM VP for global program management. “When I talk about $6,000 to $7,000, we’re talking about a battery that’s at least two times the size of a typical conversion plug-in or even a plug-in hybrid that we would offer.”

[From 2011 Chevy Volt: Volt To Get Twice The Batteries, GM Wants Twice The Tax Credit]

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