Government Incentives for Using Plug-In Cars
There are many advantages for driving plug-in cars in place of those powered solely by internal combustion engines. We all know that as electric cars, plug-in cars are a lot cleaner, thus being good for the environment. We also know that electricity is much cheaper than gasoline, so that it is more economical to fully charge and drive your car, compared to loading it up with gas. There is also the issue with how plug-in cars make it possible to help alleviate the issue of gridlock in the future.
All these advantages are good, but we also know that the sticker price of plug-in cars these days are still much higher than ordinary petroleum-based cars. While the long term advantages of plug-in cars may seem more than enough to compensate for its tag price, realistically, people who are not rolling in cash will not opt for a plug-in car without added perks.
Governments know this fact, which is why the US government is giving out incentives in order to encourage people to buy plug-in cars, or at least convert their petrol-based cars into a hybrid car. In the United States, the most common incentives given out by the government include rebates, tax benefits, and access to carpool lanes.
Rebates – The amount of rebates usually depend on the kind of plug-in vehicle you have. Obviously, the larger and more expensive your plug-in car is, the larger your rebate will also be. In some states you can get up 20% of the vehicle purchase price in rebates. This is a lot of savings, whether you managed to negotiate down the price of your plug-in car or not. Rebates are also given for additional charging equipment. It is also not just the government that hands out rebates, but some utility companies also give rebates or discounted rates to plug-in car owners for charging the vehicles during off-peak hours.
Tax benefits – The total amount of income tax credit plug-in car owners can claim depend not just in the state they live in, but also on the total price of the plug-in car owned. In some states, income tax credits are also given to owners of cars that have EV chargers installed. In addition to these, licensing fees and registration fees for plug-in cars are also lower in some states. Sales tax are also given to car dealers to encourage them to push plug-in cars even more. The construction of charging stations are also given tax incentives by the government, usually in the form of infrastructure tax credits for these businesses. These helps not just the businesses, but plug-in car owners in the end since it helps increase charging station accessibility.
Access to carpool lanes – While this reward is not a monetary reward, it is a very attractive incentive, specially with the mounting problems in traffic congestion these days. Plug-in cars are automatically given access to carpool lanes since the environmental reasons for carpooling are pretty much achieved when you use a plug-in car.