Talking About Green

If you have been looking into greening up the way you drive by purchasing a hybrid vehicle, you may be disappointed to discover that most of the tax credits for these vehicles have gone the way of the dodo.  Now you have to purchase one of the new plug-in hybrids to get the credit (as well as carpool exemptions), which means your plans for a certified pre-owned vehicle have gone out the window.  But tax credits for green cars may be on the way out entirely by 2012.  Instead, buyers could see instant rebates coming from the dealer rather than the IRS, meaning that those who buy green cars will see an immediate return in greenbacks.  Although it won’t affect which cars are eligible for cash returns or write-offs, it could definitely change the way the consumer public looks at buying automobiles.

The current process is a bit convoluted.  First, you have to buy a qualifying car, which includes fully electric vehicles like the Nissan Leaf (and the upcoming Ford Focus Electric) as well as the new class of plug-in hybrids, such as the Chevy Volt.  When you purchase one of these vehicles, you claim it on your taxes for the year and the IRS issues a tax credit in the form of a return check.  Depending on the type of vehicle you buy, you could get up to $7,500 for the car itself, with another $2,000 for the installation of a charging station.  And that’s just at the federal level.  Some states also provide additional incentives (California will give you up to $5,000 on top of the federal credit).  The only problem is that you have to wait for your money, possibly for over a year.  Considering that these newer vehicles can be pretty pricy (especially since you must also install a charging station at your home), many consumers are not willing to make the leap to eco-friendly transportation.

But the new system could provide some encouragement to buyers that are on the fence.  Consider the success of the 2009 Cash for Clunkers program, which gave incentives to those with heavy polluters that they wanted to upgrade.  This is basically the same idea.  By giving the rebate at the time of purchase, consumers could save a lot of money outright on a plug-in hybrid or electric vehicle.  This might provide just the incentive needed to opt for a fuel-efficient (or zero emission) automobile rather than a more expensive gas-guzzler.  Saving on gas and getting money back on taxes are both great, but most consumers want immediate savings, and they simply haven’t been able to see them with green vehicles in the past.

The Obama administration seems to be on the right track towards encouraging a boost in the sale of eco-friendly vehicles.  In addition to offering this rebate option as early as 2012, they have begun to prepare for the prospect of increased sales by loaning $1.4 billion to Nissan to build a plant in Tennessee for the purpose of creating the lithium-ion batteries needed to fuel electric vehicles (like their Leaf).  This will create jobs for Americans (which are sorely needed) and ultimately do more to curb greenhouse gas emissions.  In short, it appears to be a comprehensive plan that will yield all kinds of rewards for the United States (and the current President, as he heads into an election year).

Sarah Danielson writes for Trucker to Trucker where you can find a box truck, and browse through a section called sell my used truck, and search the classifieds to find a dealer near you.