Federal Rebates For Electric Cars

Federal Rebates For Electric Cars

With the mandate coming from the President of the United States, the government has since provided for funding for federal rebates for purchases made by individuals of electric cars in their states. These include both direct and indirect subsidies for these kinds of purchases.

The basic rebate currently provided, irrespective of state is $ 7,500. This rebate can be obtained after compliance with requisites such as first time purchase and the purchased vehicle is a zero emission vehicle. This kind of rebate need not be obtained by the purchaser as the car manufacturer passes on the claim and gives the vehicle to the purchaser less the rebate provided.

Depending on the state located or the purchase is made, there may be rebates provided at the local level. In California, there is an additional $ 5,000 state rebate on electric car purchases. Hawaii also is on the verge of providing rebates for electric car purchases at the $ 5,000. This together with the federal rebate provided, there is a 38 percent discount on electric car purchases.

Another federal tax credit provided to electric car owners is in the purchase of their home charging units. Federal rebates amount to $ 2,000 for purchasing charging infrastructure for the home. This is a good amount for an individual seeking to provide an electric charger at home not only for the personal electric car but also for electric cars in the neighborhood.

Thus in real terms, purchasing a Nissan Leaf, Chevy Volt or Tesla Roadster would greatly be eased up in terms of cost with the aforementioned rebates. In money terms, a Nissan Leaf currently costs $ 32,500 and with the federal rebate, the cost would become $ 25000. If the purchase were done in California, then the cost of the new Nissan Leaf would be at $ 20,000. Clearly, this makes electric cars much more affordable despite the claims of expense and pricing. In actuality, the electric car would even be cheaper not only at purchase but in the long run because of these rebates.

Not only is the United States the only country that provides for rebates for the purchase of electric cars. The United Kingdom and other countries in Europe have also instituted price rebates either in terms of subsidies, direct rebates or lower environment tax impositions for owners of electric cars. In the long run, these rebates not only help the individual purchaser but also help the environment. This is also only a short-term solution to make the electric car revolution a reality and the full costs of owning an electric car can only become more inexpensive as the technology improves and costs fall.

Bobby Castro is the online editor at the Electric Vehicle Forum, where he has published a number of articles about the Electric Car industry