The federal government has been trying to urge consumers to make eco-friendly purchasing decisions with tax credits and other incentives. The problem is that most people want the money upfront, rather than having to wait until they file their income taxes.
That could change soon for people looking to purchase electric vehicles. U.S. Transportation Secretary Ray LaHood recently stated that the Obama Administration wants consumers to be able to get instant cash back for electric cars. Revisions to the existing law that allows $7500 as a tax credit (instead of a tax rebate) could be made in the next year.
LaHood’s comments were made last week at a tour of Nissan’s lithium-ion battery plant in Smryna. Nissan, which manufactures the all-electric Nissan LEAF, could benefit from a change in the tax laws that would allow instant cash back for electric cars. Currently, the LEAF costs about $32,500, which could make it difficult to justify spending more on an EV, rather than a gas-powered car. If a $7500 rebate is allowed on the day of purchase, the price falls to a more competitive $25,000.
LaHood discussed how the new tax program might work if consumers could receive a $7500 tax rebate the day of their EV purchase. Combining the rebate with state incentives, people would be able “to own a Leaf for what most average people can afford,” he said.
We’re thinking that instant cash back for electric cars sounds like a great idea! What are your thoughts?