Senate Strives for Palatable Energy Bill; Plug-in Credits In

The Detroit News is reporting on the efforts in the Senate to craft a viable energy bill. As presently consitituted, the Senate bill drops the requirement of electricity generators to achieve 15% renewable sources, but includes higher CAFE standards and major provisions for plug-ins, including conversions.

The bill also increases to just more than $1 billion consumer tax credits for buying a plug-in hybrid, with a $5,000 per-vehicle maximum. It also creates a 20 percent tax credit for consumers who convert their vehicle to a plug-in, or up to $2,500.

$5000 could cover, certainly goes a long way, to make up the differential between a gasoline only hybrid and a plug-in. Over 200,000 PHEVs. And if the OEMs don't step up to the plate, $2500 should push a significant number of hybrid owners to contemplate conversions coming to market in 2008.