The "cash for volts" technique is part of an effort by the Electrification Coalition, a 13-member group that comprises Nissan Motor Corp. and shipping giant FedEx Corp., to campaign for more government support for electric vehicles and the infrastructure required to make them more appealing to consumers and businesses.
The group has sketched a plan to put 100 million electric vehicles on the road by 2030, starting with pilot projects in six to eight U.S. cities. The Obama Administration in the beginning of this year awarded $2.4 billion in grants supported by the economic stimulus program to subsidize development of electric vehicle production in the U.S.
The tax credits would make up for the high costs of electric vehicles and the sustaining infrastructure. Auto industry executives worry that unless there is a considerable increase in gasoline prices, most consumers won't see the value of exclusive electric vehicles that have ranges between refueling stops of 100 miles or less.
The group notes that Japan and the European Union already offers huge financial incentives to encourage electric vehicle purchases.