Some California Residents Can Save $13,000 on the Purchase of an EV
August 24, 2012 9:14 AM
comment(s) - last by
Some residents qualify for a local rebate of $3,000
The state pushing the hardest to transition drivers from gasoline-powered vehicles to electric vehicles and hybrids is California. Part of the state’s push to get people to adopt electric vehicles has come by way of tax credits and rebates (which are in addition to rebates available at the federal level).
All of those rebates can be combined making for a significant discount off the purchase price of an electric vehicle. The state of California offers a $2,500 rebate on the purchase of an electric car. The federal tax credit for buying an electric vehicle is $7,500. However, the San Joaquin Valley Air Pollution Control District recently announced that it is offering drivers in the district another $3,000 to purchase an electric vehicle.
When combined the local, state, and federal tax rebates, this represents a total of $13,000 off the price of an EV. To compare, in the state a new gasoline-powered Toyota Corolla has a sticker price of just under $18,000. By comparison, the
electric Mitsubishi iMiEV
has a sticker price of $29,975. That is a huge difference between factory MSRPs for the vehicles, but when you knock off the $13,000 in credits, the purchase price of the Mitsubishi EV is a more palatable $16,975.
Despite the significant discount, most drivers still stay away from electric vehicles. The biggest reason is range anxiety and long charging times. However, electric vehicles can be cheaper to operate. An example would be to drive the gasoline-powered Corolla mentioned before with a travel distance of 40 miles a day with gasoline at $3.95 per gallon would cost the driver $150 a month. Charging the electric car to drive the same distance each day would cost about $50.
President Obama is also seeking to
expand tax credits
for EVs by bumping the federal credit from $7,500 to $10,000, making the price gap even less if approved.
This article is over a month old, voting and posting comments is disabled
RE: More hanouts for the rich
8/24/2012 8:32:42 PM
You cannot come out net-positive for the year on federal taxes via this credit.
However, if you've been making estimated Federal income tax payments all year - and if you work a normal job they've automatically been deducting it - then you can get up to all of that money back in the form of a refund check.
So if your tax liability for the year is $7,500 or more, and that tax has already been given to the government in the form of estimated withholdings, then yes you would get a refund check for the full $7,500.
Only if your Federal liability is less than $7,500 would you not be able to get the full amount. Chances are though, if you're even considering buying a new car, you probably owe more than $7,500.
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
Obama Thinks $7,500 EV Tax Credit Isn't Enough, Proposes Increase to $10,000
February 15, 2012, 4:40 PM
$27,990 Mitsubishi EV Qualifies for $7,500 Federal Credit, $4,500 Hawaii Rebate
April 26, 2011, 12:02 PM
Ford Expects Four-Cylinder Engines to Significantly Increase in Popularity
May 21, 2013, 8:56 AM
Toyota Wants to Increase Lithium-Ion Battery Production to 20,000/Year
May 20, 2013, 9:30 PM
Mercedes Aims for 45 MPG Highway on New E250 Bluetec 4Matic Diesel Sedan
May 20, 2013, 8:20 AM
Tesla to Issue More Stock, Pay Off Energy Loans with Proceeds
May 16, 2013, 1:58 PM
NC Becomes Latest State to Threaten Tesla's Direct Sales to Customers
May 14, 2013, 11:33 AM
Consumer Study Shows Buyers Are Embracing Fuel Sipping Vehicles
May 8, 2013, 11:09 AM
Most Popular Articles
High School Student Creates Storage Device that Can Charge in 20 Seconds
May 20, 2013, 6:51 AM
Google Announces "Pure" Galaxy Nexus S4 for $649, Android Updates
May 15, 2013, 1:42 PM
Seawater Cooling Saves Data Center Big Bucks, Energy, Despite Jellyfish Issues
May 17, 2013, 3:23 PM
U.S. Federal Traffic Board Wants to Make Drunk Driving Threshold Far Harsher
May 15, 2013, 11:32 AM
Newegg Legal Chief: "We don't Feed the Trolls"; Defeats Bell Lab Shell Comp.
May 17, 2013, 10:11 AM
Latest Blog Posts
Quick Note: Sony "Teases" PS4 Ahead of Xbox Reveal in New Video
May 20, 2013, 12:33 PM
Nokia Introduces Instagram-Like App of Its Own to Help Lumia Sales
May 20, 2013, 7:10 AM
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
Elon Musk Willing to Spend More Money on Widening of 405 Freeway
Apr 26, 2013, 7:28 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information