Aren't 50% of all E85 pumps in the USA located in the state of Wisconson? I'm pretty sure they have a good (and by good I mean selfish) reason to not endorce hybrids and instead endorse gas guzzling SUV's that run on E85 instead.

I do not know the statistics, but ethanol is a hot issue in Wisconsin and may have play a part in this decision. The legislator who co-sponsored the original bill plans to re-introduce it next year so hopefully things will work out if citizens put pressure on the legislature.
I realize the loss of the $1000 tax credit would not prevent most of us from buying a hybrid car, however it would go a long way in helping families on fixed incomes overcome the extra cost in purchasing a hybrid car....I have talked to many people who have been told the line that 'hybrid cars do not pay off' and this may help people to at least consider this option.

Thanks to all who posted info about the battery issue!!

You still get the federal tax credit.