Obama’s Stimulus Plan Contains Plenty For PHEV Fans

In a speech yesterday in Elkhart, IN, President Obama outlined the current state of the stimulus package, on which the Senate has voted to close debate. Some changes to the original plan include an increase in the number of plug-in vehicles eligible for a tax credit. A tax credit of $7,500-$15,000 will be extended to the first 500,000 claimants, up from 250,000 in the original plan.

PHEV conversions will now be eligible for a tax credit of up to 10% of the conversion cost, with a maximum credit of $4,000, provided that the conversions are "qualified."

Eligible vehicles will be defined as those with leased battery systems. Two- and three-wheeled vehicles will also be eligible for credits, as will some "neighborhood electric vehicles." The new credits are likely to take effect immediately.

The Post Office is looking to get into the act, too. In an Op-Ed piece in the New York Times, Postal Regulator Commissioner Ruth Goldway is advocating that some federal stimulus dollars be directed to the Post Office to assist in the conversion of at least some of the Office's 219,000-vehicle fleet to EVs. According to the piece, converting 65% of the fleet to electric vehicles could produce a savings of 68 million gallons of fuel annually.

The Post Office fleet seems like a natural conversion opportunity, and is still a full-fledged branch of the US federal government, but has not received any general assistance from the federal budget in years. Federal assistance with converting the Post Office's fleet, therefore, isn't a given. With a savings of 68 million gallons of fuel each year, and a (presumably) 65% reduction in carbon emissions, conversion of the USPS delivery fleet seems like a potential winner for everyone.

Photo Credit: Denise O'Brien