There was much news about congress trying to come up with a new round of tax credit which was targeted to new plug-in electric and hybrid vehicles. These tax credits were ranged from $ 3000 for at least 6kWh battery and $ 7500 for the top most. In middle of all bailout plans this news important for electric cars and hybrids almost got lost…

Currently running Toyota Prius is having a 1.3 kWh battery, so it was stepped down as it was not able to satisfy the minimum criteria. Also the company was unhappy because of the reason the only vehicle is going to qualify in near future is the Chevrolet Volt. After this event there was a legislation passed in the assembly by the president which was supported by 171 out of 263. This legislation explained a complete $ 700 billion bailout plan. Out of this $1 billion were only for a 10 year plan for the plug-in Hybrid and electric cars. This was the moment when Toyota’s fears become law.

The initial requirements were also readjusted because of its inception at the senate. This changed the requirement to qualify to $4168 which was $3000 earlier. At this moment the minimum power requirement was also lowered down to 4kWh from 6kWh. While the maximum limit remained the same. This tax credit was for Chevrolet Volt which was capable of 16 kWh.

The Chevrolet Volt will be initially powered by a 150 HP, 273 lb-ft electric motor. Also there is a 1.4 liter gasoline engine that is primarily used to charge the lithium ion battery present, after the 40 mile distance of the battery is over. Studies and tests have shown that Volt is capable of saving around $1500 per year in the daily commute is 40 miles.

The tax credit which is provided to Chevrolet Volt will much emphasis on decreasing the price of the Volt making it more affordable. Because the current estimates say that the car will be for $40000 or a little higher.