GM is Lobbying for Tax Breaks on Chevy Volt

GM is pushing hard for a tax break on plug-in hybrid cars. With the onset of the Chevy Volt in 2010, GM is hoping a tax break will cut costs to the consumer. And that's not a small thing when recent estimates put the final price tag close to $40,000.

With extensive design issues and technological question marks, the cost to develop the Chevy Volt has been extensive.

GM is pushing for a $7,000 tax break. That sort of savings could make or break the Volt, as hybrid tax credits helped get Toyota and Honda out of the low production numbers and into a high production fight to reduce cost. But still, when you compare the Volt against the Prius, you come away with one big question. Is plugging in worth an extra $10 grand?

Without a significant tax break, GM may sell the Volt at closer to $30,000, but due so at a significant loss. GM has publicly stated they are ready to lose money on the Volt in order to regain their public image.

The House did set up a bill to create a tax break of $3,000 for plug-in hybrids like the Volt, but it's unlikely to pass the Senate or be passed into law by Bush. The next president and Senate may have a different take on a tax incentive for plug-ins, however.