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http://thepage.time.com/prepared-remarks-of-obamas-energy-speech/

...

"First, we will help states like Michigan build the fuel-efficient cars we need, and we will get one million 150 mile-per-gallon plug-in hybrids on our roads within six years."

With technology we have on the shelf today, we will raise our fuel mileage standards four percent every year. We’ll invest more in the research and development of those plug-in hybrids, specifically focusing on the battery technology. We’ll leverage private sector funding to bring these cars directly to American consumers, and we’ll give consumers a $7,000 tax credit to buy these vehicles.

But most importantly, I’ll provide $4 billion in loans and tax credits to American auto plants and manufacturers so that they can re-tool their factories and build these cars. That’s how we’ll not only protect our auto industry and our auto workers, but help them thrive in a 21st century economy.

Lol, I saw you saying that no one was discussing the phev tax credit and went to find this thread, where I was sure there would be a lengthy thread...

Even with the $7,000 tax credit, though, most people who _really_ need to save on gas still won't be able to afford an phevs, especially if the price of the Chevy Volt is any indication of a trend. Does anyone know how much the 2010 phev prius is supposed to cost?

Yes... That actually puts the Hymotion kit into reach.


COST
Hymotion kit: | $10,495
Tax Credit: | $(7000)
- - - - -|- - - - -
Out of Pocket: | $3,495


Savings / Mile
Cost / Mile '07 Prius @ 80 MPG & $8.50/gal | $0.106
Cost / Mile '07 PHEV Prus @ 120 MPG & $8.50/gal | $0.071
- - - - -|- - - - -
Savings / Mile for PHEV @ $8.50/gal | $0.035

Financial Break Even Point
Current Miles / Year| 13,333
Number of miles to re-coup cost | 98,682
- - - - -|- - - - -
Number of Years to accrue Savings | 7.4



So basically, with the tax credit, if I hold my car till 118k miles in the year 2015, I'll have saved the same amount I spent ($3,495), the whole time actually contributing less to Oil Barrons! That's the first time those equations have ever balanced within the life span I intend to hold the Prius.

So that would make my Prius 8 years old, with 118k miles and a PHEV kit. I'll make a mint on resale! Also.. The calculations on the average price of gas over the next 8 years is accurate. It's 3.80 now, it increases at a rate of 20% per year historically, that puts it at $15 / gal in later half of 2015 or an average of about 8.50 / gallon over those 7.4 years.

I'd actually do this on two conditions:

Someone actually passes the tax credit law
The tax credit doesn't get canceled by AMT like my two hybrid credits did


11011011

But the tax credit only works on taxes you pay end of year?

So you still have to pay that upfront $10,000. Probably off a load if you can't afford it. Then your just getting a credit to use on taxes. But what you pay in taxes could be much less, perhaps you've only saves $2000-$3000.

$10,000 is still a great deal of spending. It only makes sense if you pay enough in taxes to make full use of the credit.

Hi Dan:

___Good calc's!

___The tax credit means we will not receive anything. AMT has killed that one off for anyone that can afford to throw a $10K conversion at their Prius.

___Fuel use. You would not use any fuel with a PHEV conversion :D

___2011 Volt and Prius-III OEM PHEV’s would be a great start for the country however!

___Good Luck

___Wayne

$10,000 is still a great deal of spending. It only makes sense if you pay enough in taxes to make full use of the credit.Thought I covered that...I'd actually do this on two conditions:

Someone actually passes the tax credit law
The tax credit doesn't get canceled by AMT like my two hybrid credits did
Your correct though that unless you make more than 42k / year, you don't pay 7k in taxes. There is a big assumption that this is an "income tax credit". Those who make 30k a year, have 4k in "income tax", but another 5-7k in "other" taxes. Gas tax, sales tax, property tax, license tax, Universal Service tax... but I digress...

references: http://www.irs.gov/pub/irs-pdf/i1040tt.pdf

11011011

The most exciting part of the tax credit is its ability to boost demand and increase economies-of-scale on the supply side.

Yeah, AMT may mean Hymotion is not a $3k conversion today after the credit.

But the credit may mean Hymotion is $5k pre-tax sooner than we think. :)

let me get this straight. if i buy the hymotion setup (say i pay cash for it) i will get a credit of? how much? i thought the kit was only 4kwh? that's a credit of 2,500, right? if not, what is the credit? i had thought the credit was for vehicles only, not kits....thanks, chris