Obama to credit green car buyers
President Barack Obama proposed expanded tax credits and community research grants to make alternative-energy cars and trucks more attractive to buyers, as he pitched his energy agenda in the battleground state of North Carolina.
Electric, natural gas and hydrogenpowered vehicles would be covered by the plan, which Obama said is part of his strategy to buffer the U.S. against rising oil costs.
“Both you and I know there are no quick fixes to this problem,” Obama told his audience at a Daimler Trucks North America plant in Mount Holly, N.C.
Obama has been focusing on energy in public appearances and speeches over the past two weeks as rising gasoline prices threaten to impede the recovery and the issue is being raised by the Republicans seeking to run against him in November.
The average retail price for a gallon of regular gasoline was $3.76 as of Tuesday, according to the American Automobile Association. That’s up from $3.51 a year ago.
“We’re not going to be able to just drill our way out” of higher energy costs, Obama said, repeating a message he’s been delivering to counter Republican criticism of his policies.
Obama is asking Congress to make two changes in tax law to coax drivers into less-polluting vehicles. One would raise the tax credit to $10,000 from $7,500 for the purchase of a socalled advanced vehicle. The credit would be applied instantly at the dealership, according to a White House fact sheet.
The second tax change would target buyers of electric and natural gas-powered commercial trucks, including semi-tractor trailers. Those vehicles would qualify for a 50 per cent tax credit for half the additional cost over a conventional truck, to help overcome the initial upfront cost. Obama also offered a new, $1 billion program to as many as 15 U.S. cities to finance investments in clean-vehicle infrastructure.