FARGO
Global Electric Motorcars in Fargo expects that recently enacted federal energy tax legislation will help drive its sales and create jobs.
The legislation is part of the Emergency Economic Stabilization Act, commonly referred to as the bailout bill. It gives people who buy a qualified electric car at least $2,500 in income tax credit.
All of the cars manufactured by GEM meet the legislation's qualifications, said Rick Kasper, president and chief operating officer of GEM, a Chrysler company.
The sales incentive, which drops a GEM vehicle's price by 19 to 32 percent, will keep GEM cars attractive even with dropping gas prices, which won't likely last, said Rep. Earl Pomeroy, D-N.D. Pomeroy and Kasper announced the tax incentive Tuesday at GEM.
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The language for the tax incentive was developed in the Senate. Pomeroy wrote a letter to the chairman of the House Ways and Means Committee urging that the legislation be kept in any final package, said Melanie Rhinehart Van Tassell, Pomeroy's legislative director. Pomeroy is a member of the committee, which has jurisdiction over tax policy.
"Credit is tight. Money to expand is tight. Having a tremendous drop in sales price because of this tax credit is exactly what the doctor ordered," Pomeroy said.
The tax credit will be available Jan. 1 through 2014.
"With the current focus on energy and environmentally friendly vehicles, GEM is proud to be a leader in this industry," Kasper said.
Pomeroy also brought up talks General Motors and Chrysler have held about a merger or an acquisition of Chrysler by GM. The possibility has caused many to worry about potential lost jobs should the two automobile manufacturers become one.
The Forum of Fargo-Moorhead and the Herald are Forum Communications Co. newspapers.
