Yesterday I wrote about the battle between electric car sales and the price of oil, they follow the fact that for every action there is a reaction, i.e. when one goes up, the other goes down!
I commented on the fact that some Governments use tax credits or other methods to help create sales of electric or hybrid vehicles and this morning I read that the Federal tax credit on Fuel Cells expires at the end of the year. With the U.S. Government in turmoil after the mid terms, it is concerning the industry that these credits will expire just as the manufacturers hit the market with new cars.
Toyota, Hyundai and others have spent billions developing hydrogen based fuel cells that are stronger and safer than earlier versions. BMW have had a range of 7 Series under test for years. Now however, the cost of them will increase from the 1st January and this could put a damper on sales, especially as the infrastructure isn’t widely available for owners to refuel.
The tax credits could simply be extended for many more years, the Congressional Budget Office estimates that it would cost $10 million per year, although the more vehicles sold, the higher the cost will naturally be!
Any support from Government benefits both the industry and the owners of these vehicles and if the cost is really that low, then it should be extended – I suspect that it will lapse and then be added back in when the Government settles down a bit.