Fiscal Cliff bill supports environmentally-friendly vehicles and NASCAR
President Obama has signed the bill that prevented America going off the so called 'Fiscal Cliff'. The House has approved the legislation, which sees tax increase for rich households, does not concern middle and low income families and also does not involve healthcare. All good then! Well, almost, as no cuts were made for the Government and the over-bloated defense expenses. But how will this cuts affect the automotive industry?
Surprisingly it is not all bad news as expected for us gearheads, as over the next two years tax credits have been extended for the automotive industry. The best incentives have been given to alternative fuel and low emission vehicles, but also large circuits have received a substantial extension to pay their debts.
Let's see in detail which sectors of the automotive industry have been benefit from the Fiscal Cliff bill:
1. Extension of the alternative fuel infrastructure tax credit, such as bio-fuel and bio-diesel industry.
2. Expansion of the existing green-energy tax credit for people interested in purchasing plug-in vehicles and electric motorbikes.
3. Extension of the “seven-year cost recovery period” for motorsports circuits and racing tracks facilities, such as NASCAR.
4. Extension of the alternative energy and fuels tax credit.
5. Extension of the existing tax credit for owners of electric vehicles recharging facilities.
It seems that Washington wants to push people into alternative energy, in order to lower the bill of these still relatively costly vehicles. Extended incentives for buyers and users of such transports will also support the development of new technologies aimed at finding secondary options to petrol and diesel. Obviously we could see a few irate faces at the back of the House.