White House to pump $4.7 billion into advanced vehicles image

The U.S. Government has announced it will put $3.7 billion on the table in new tax credits for electric vehicles, commercial trucks and other advanced-technology vehicle.

In addition, the White House is proposing to spend $1 billion to help up to 15 communities speed the deployment of advanced-technology vehicles. President Barack Obama also wants to broaden a government tax credit that was initially created to support Evs, in order to include other types of advanced vehicles such as those that use compressed natural gas. The change of plans comes as electric cars are not adopted by Americans as fast as experts predicted.

According to the White House, the deployment fund would allow “10 to 15 model communities to invest in the necessary infrastructure, remove the regulatory barriers, and create the local incentives to support deployment of advanced vehicles at critical mass.” The new proposal is „fuel neutral”, as it allows communities to decide if electrification, natural gas or other alternative fuels are best fitted to their needs.

The White House wants to spend $2 billion to expand the EV tax credit from $7,500 to $10,000 and turn it into a point of sale rebate. It is also proposing to spend $1.7 billion to create a new credit to allow commercial truck buyers to get credit for half of the additional costs of buying an advanced-technology vehicle.