Chevy Volt now $7500 less thanks to new tax credit

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Bob Lutz confirmed few months ago that the Volt will retail for about $40,000 and generate no profit for GM. The company hopes to make money as it rolls out later versions of the vehicle and other plug-in models.

Now there is some good news to all the Volt fans in the states, it’s called the Transportation and Domestic Fuel Security Provision.

This provision provides a tax credit for buyers of plug-in electric vehicles. It provides a base of $2500 plus an additional $417 per kwh for batteries greater than 4 kwh. For the Chevy Volt, that works out to $7500 per car, a number GM had lobbied for.

The credit will be applied to the first 250,000 plug-in cars sold in the US and will be phased out to 50% for the following two quarters, and 25% for the two quarters after that before ending. The total cost of the credits will be $758 million.

Source: gm-volt