Obama's budget plans to give cash to EV buyers

In an effort to push electric vehicle sales closer towards Obama's 2015 goal, the President's new budget has modified federal tax credits for purchasing EVs.

During the recent state of the Union address to the nation, President Obama announced that he was aiming to have one million plug-in electric vehicles on the road within four years. shortly after the speech, however, many began to question the viability of the goal, with one collegiate study concluding that the only way to make that possible would be to increase federal incentives.

The Obama administration apparently saw that study, as Obama's new budget plans released today calls for a $7,500 cash rebate to be enacted in lieu of the current federal tax credit plan, according to CNNMoney.

The proposed changes are outlined in Democratic Senator Debbie Stabenow's bill, the "Charging America Forward" act, which would aim to entice buyers with immediate rebates rather than rebates that can take months, and would also give business tax credits of anywhere between $15,000 and $100,000 for the purchase of electric vehicles.

Neither the President's budget or the bill proposed by Stabenow have been approved, and both face scrutiny from the GOP in the coming weeks, which will determine if these plans make it to market or not.

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