February 17, 2009

President Barack Obama today signed the American Recovery and Reinvestment Act, which contains $11 billion to build a state-of-the art national energy grid, $6 billion in loan guarantees for renewable energy, $2 billion for advanced battery manufacturing, $5 billion for home weatherization, $3.2 billion for state energy efficiency and clean energy grants, $17.7 billion to modernize and expand rail transit, and billions more for other clean energy programs.

The Act provides a tax credit for Plug-in Electric Vehicles. The base amount of the credit for plug-in electric vehicles (none of which are yet on the market) is $2,500. The credit will be reduced after the manufacturer sells 200,000 cars. The Recovery Act also allows the credit against the alternative minimum tax beginning in 2010.