US Auto Industry Opposes Aftermarket Plug-in Conversion Hybrid Tax Perk

Washinton DC July 12, 2007; The AIADA newsletter reporterd that the Detroit News said that support is growing in Congress for tax breaks for hybrid owners who convert their vehicles to plug-ins.

U.S. Rep. Ed Markey (D-MA) head of the House global warming committee who's been pushing a 40 percent boost in vehicle mileage standards by 2018, proposed his "Plug-in Hybrid Opportunity Act of 2007" yesterday.

It would give gasoline-electric hybrid owners a 35 percent tax credit to defray the costs of converting their vehicle to plug-ins. Automakers have been critical of the effort.

Converting a vehicle not only invalidates the manufacturer's warranty, but also requires the installation of several hundred pounds of batteries and often forces the removal of the spare tire.

Toyota says converting a hybrid risks vehicle fires, and actually increases greenhouse gas emissions. Charles Ing, Toyota's director of governmental affairs, told the Senate that tests of converted plug-in Toyota Prius vehicles show they had significantly higher emissions of nitrogen oxide.

"This raises the question of whether the government should be paying people to make their cars dirtier," Ing wrote. Markey will hold a hearing and demonstration today with A123's president and CEO, David Vieau. A123 is selling conversion kits for around $10,000.