A number of friends and clients have asked about the hybrid and electric cars being produced. Well there are a number of new elements used in the production of these units. Just to name a few, body materials, transmissions, engines and the main power source, batteries. Over the next year and a half there will be a major move to the Lithium-ion cells and Lithium-ion batteries. Right now the major car companies are using old, old battery technology--Sealed Nickel-Metal Hydride Battery. In other words the batteries being used in the existing cars and trucks will be obsolete in two years. So, if you own one now, before your warranty is up, it may be almost time to sell and pick up a new generation electric or hybrid. The next battery is due in early 2009 has Lithium-ion cells which will increase range of the vehicle. Another battery due out in a year and a half that will be a Lithium-ion battery. It will make it possible for the Chevy Volt to travel 40 miles on a charge. They have figured that the majority of buyers will travel 15 miles one way to work, so the 40 mile range is reasonable. It will have an onboard gasoline generator that will recharge the battery if it runs low.With its onboard generator the vehicle has a possible range of up to 400 miles. The GM Volt can be recharged at a 110 house or office outlet in 8 hours. They are considering a 220 that may recharge in 4 hours. The vehicle will cost GM somewhere around $110,000 to $125,000 each but will sell for a base cost around $40,000 to $50,000. The vehicle is due out Nov. 2010

Toyota looks to be the first to explore many of the new technologies with the introduction of the New Prius. A new face lift, body panels and maybe a lithium cell battery by Jan. or Feb. GM has the vehicle for those of you who need a full size SUV and would like a hybrid that is rated at 21 city and 22 Hwy. It is a luxury 2wd Yukon with a 6.0 liter engine big enough to do some heavy towing. Even better, it looks like the tax code 179 is still in play for the independent contractor or company for a great way to take a huge double deduction on that heavy Hybrid expense. You need to contact your CPA or tax accountant for rules and regulations.