Why should you buy plug-in and electric vehicles or PEVs? As compared to fuel-powered vehicles, electric cars contribute less to air pollution because they do not use gasoline like the former. They are powered by electricity produced by coal, nuclear, natural gas, and other renewable resources.
And if the environmental incentives aren’t enough to convince you to drive electric, governments from around the world encourage the use of electric and plug-in vehicles by providing incentives in the form of tax deductions, reimbursements, and tax credits. Also, use of electric vehicles helps reduce greenhouse gas emissions and petroleum consumption, which further contribute to land and air pollution.
Under the stimulus bill or American Recovery and Reinvestment Act of 2009, electric car owners may avail of up to $7,500 federal income tax credits for electric vehicles sold after 2008. This was later replaced by a rule providing incentives to EV’s bought after 2010, but with the same amount of incentive (still up to $7,500).
EV owners must comply with the following to qualify for the tax credit:
(1) The EV is made by a manufacturer.
(2) It meets the definition of a motor vehicle under the Clean Air Act Title II.
(3) It has a GVWR or gross vehicle weight rating of not more than 14,000 pounds.
(4) It is not leased.
(5) It must only be used in the U.S.
(6) It must be for personal use.
The following are the 10 best PEVs state incentives in the new millennium:
Ontario’s Electric Vehicle Incentive Program was launched in mid-2010 to promote the use of battery electric or plug-in hybrid electric vehicles by allowing EV owners to apply for a rebate ranging from $5,000 to $8,500, depending on the capacity of the EV’s battery.
EV owners in Canada may qualify for Ontario’s Electric Vehicle Incentive Program by (1) applying within six months counted from the date of purchase or lease of the EV, (2) ensuring that their EVs are insured, registered, and plated in Ontario for 12 months at least, and (3) certifying that the EV is in the list of eligible vehicles provided by the Ontario Ministry of Transportation.
The state of Alabama has the power rate reduction incentive. Under this state law, consumers are given discounted electricity rates for charging EVs used for non-residential purposes. They provide a separate meter for charging electric vehicles to accurately determine the percentage of use and the exact amount of rate to be reduced.
EV owners in the state of California can obtain insurance discounts of up to 10%. They can also apply with the San Joaquin Valley Air Pollution Control District to claim up to $3,000 incentive funds for the purchase of an EV. If your EV does not qualify, don’t worry as they will give you a list stating your deficiencies.
The state of Florida exempts EV owners from premium surcharges imposed by insurance companies. Exemptions are based on the EV’s new technology, weight-to-horsepower ratio, passenger payload, and other factors as may be determined by the Florida Office of Insurance Regulation. However, the office may remove the exemption if an actuarial data submitted to it justifies the imposition of the surcharge.
The state of Kentucky has the Louisville Gas & Electric Rate Reduction, which provides resident EV owners discounted electric rates. However, the discount is limited only to the first 100 residents EV owners who qualify.
In the state of Massachusetts, EV owners can avail of discounts up to $2,500 for the purchase or lease of an EV under the Massachusetts Vehicle Rebate Project.
The Northern Indiana Public Service Company or NIPSCO provides rebates up to $1,650 for the purchase of EVs and free PEV charging during off-peak hours to those who qualify under the In-Charge Electric Vehicles Program.
EV owners in the state of Georgia are given tax credits of up to $250,000 (per taxpayer). However, 50% of the vehicle’s miles must be driven in Georgia.
In the state of Colorado, EV owners can avail of income tax credits (up to $6,000) for the purchase of EVs, under the Innovative Motor Vehicle Credit Program.
Residents in Connecticut who purchase or lease battery electric vehicles or BEVs can obtain a reimbursement of up to $3,000.
Take note of some business insurance quotes because they may help you decide what electric car to buy, as well as give you specific information about electric cars and the best electric and plug-in vehicle incentives.