President Obama to Increase Vehicle Research Budget by 75% image

In his 2014 budget proposal, President Barack Obama proposed an increase in funding offered for vehicle research, high-speed rail and manufacturing.

Obama also plans to increase the Energy Department’s vehicle research budget by 75% to $575 million and also create a $2 billion trust fund to find solutions to get the US off foreign oil in the next decade.

“We’ll continue our march toward energy independence,” Obama said.

To boost sales of the electric vehicles the President calls for a tax credit increase for EVs to $10,000, allowing the customers to get the credit as a point-of-sale rebate instead of when they filed a tax return the following year. Republicans are against any of the President’s proposals to increase EV tax credits, opposing diverting oil revenue to fund more research. Back in 2008, Obama was confident that by 2015 the US will have on its roads 1 million plug-in vehicles, but numbers show that this goal is impossible as only 50,000 units have been sold since 2011.

President Obama has shifted attention from the EVs and now wants to expand a tax credit of up to $40,000 for fuel-cell powered medium- and heavy-duty trucks in order to focus on the alternative-fuel technologies.

“We generally support incentives that can help move our models from dealer lots to people’s driveways,” said the Alliance of Automobile Manufacturers, “but we defer to policymakers in setting the precise dollar amount needed to increase sales.”