huge tax breaks for Leaf (rated at 99 MPG)
11-09-10, 12:56 PM
#1
Lexus Champion
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huge tax breaks for Leaf (rated at 99 MPG)
NEW YORK (CNNMoney.com) -- The Nissan Leaf will carry a price tag of $32,500, but some California residents could drive one for just about $17,000 -- roughly the cost of a typical gas-powered compact sedan.
That low, low price is thanks to incentives from the federal government, which offers a $7,500 tax credit to buyers of plug-in cars; the state of California, which offers a $5,000 rebate; and local governments in California's San Joaquin Valley, which offer another $3,000 in rebates.
Many other states, and even cities and counties, offer their own incentives for plug-in cars. Those tax breaks and other goodies could be deal-makers for a lot of consumers, if they know about and can understand them.
The incentives are designed to encourage car buyers who are willing to do their part to help the environment -- provided it doesn't cost them anything.
"Survey after survey says 'I'm willing to drive sustainably but I'm not willing to pay one penny more,' " said Mark Perry, director of product planning at Nissan North America.
For the initial buyers of plug-in vehicles, however, those sorts of pay-offs probably will make little difference, said Jesse Toprak, an auto sales analyst with the website Truecar.com. The first buyers in line will be hard-core electric-car enthusiasts who've been waiting years to get their hands on one and who'll need little financial prompting.
"State incentives will be more of a factor as the early adapter effect diminishes throughout the year," Toprak said.
Nissan's cure for 'Range Anxiety'
Tax incentives for plug-in vehicles are cropping up in lots of places -- blue states and red, said Jay Friedland, legislative director for the group Plug-in America, an electric car advocacy group. That's in part because efforts to reduce fuel consumption appeal to people across the political spectrum, from those who want to reduce greenhouse gas emissions to those who want to cut dependence on foreign oil, Friedland said.
"It covers environmental issues all the way over the whole national security field," he said.
But some of the rules for getting these incentives can be confusing and not all define an "electric" or "zero emission car" the same way.
For example, Californians who buy a Nissan Leaf will be able to get a $5,000 tax credit and access to carpool lanes, but those who buy a 2011 Chevrolet Volt won't. That's because, under state rules, the Volt does not qualify as a "zero emissions vehicle," GM spokesman Shad Balch said.
The Volt does qualify for the federal $7,500 tax credit, though, as well as incentives in other states. With some engineering tweaks, it is expected to qualify for the California benefits by 2012, Balch said.
Some of the biggest state packages, according to Nissan:
* Colorado residents can get a tax credit of up to $6,000 for the purchase of a qualifying vehicle, plus a tax credit of up to 20% for the purchase of a charger.
* California is offering a tax rebate of up to $5,000 for the purchase of a zero-emission vehicle, plus use of carpool lanes. Many localities offer additional incentives, including tax breaks and free parking.
* Georgia offers an income tax credit of up to $5,000 as well as a tax credit of 10% for the cost of charging equipment. Qualifying vehicles also have access to carpool lanes.
* Hawaii residents can claim a rebate of 20% of the vehicle's purchase price up to $4,500. Rebates of up $5,000 are available if the purchase includes a charging station.
The Department of Energy maintains a database of federal and state incentives for electric vehicles on its website at http://www.afdc.energy.gov/afdc/laws/
http://money.cnn.com/2010/11/09/auto...dex.htm?hpt=T2
That low, low price is thanks to incentives from the federal government, which offers a $7,500 tax credit to buyers of plug-in cars; the state of California, which offers a $5,000 rebate; and local governments in California's San Joaquin Valley, which offer another $3,000 in rebates.
Many other states, and even cities and counties, offer their own incentives for plug-in cars. Those tax breaks and other goodies could be deal-makers for a lot of consumers, if they know about and can understand them.
The incentives are designed to encourage car buyers who are willing to do their part to help the environment -- provided it doesn't cost them anything.
"Survey after survey says 'I'm willing to drive sustainably but I'm not willing to pay one penny more,' " said Mark Perry, director of product planning at Nissan North America.
For the initial buyers of plug-in vehicles, however, those sorts of pay-offs probably will make little difference, said Jesse Toprak, an auto sales analyst with the website Truecar.com. The first buyers in line will be hard-core electric-car enthusiasts who've been waiting years to get their hands on one and who'll need little financial prompting.
"State incentives will be more of a factor as the early adapter effect diminishes throughout the year," Toprak said.
Nissan's cure for 'Range Anxiety'
Tax incentives for plug-in vehicles are cropping up in lots of places -- blue states and red, said Jay Friedland, legislative director for the group Plug-in America, an electric car advocacy group. That's in part because efforts to reduce fuel consumption appeal to people across the political spectrum, from those who want to reduce greenhouse gas emissions to those who want to cut dependence on foreign oil, Friedland said.
"It covers environmental issues all the way over the whole national security field," he said.
But some of the rules for getting these incentives can be confusing and not all define an "electric" or "zero emission car" the same way.
For example, Californians who buy a Nissan Leaf will be able to get a $5,000 tax credit and access to carpool lanes, but those who buy a 2011 Chevrolet Volt won't. That's because, under state rules, the Volt does not qualify as a "zero emissions vehicle," GM spokesman Shad Balch said.
The Volt does qualify for the federal $7,500 tax credit, though, as well as incentives in other states. With some engineering tweaks, it is expected to qualify for the California benefits by 2012, Balch said.
Some of the biggest state packages, according to Nissan:
* Colorado residents can get a tax credit of up to $6,000 for the purchase of a qualifying vehicle, plus a tax credit of up to 20% for the purchase of a charger.
* California is offering a tax rebate of up to $5,000 for the purchase of a zero-emission vehicle, plus use of carpool lanes. Many localities offer additional incentives, including tax breaks and free parking.
* Georgia offers an income tax credit of up to $5,000 as well as a tax credit of 10% for the cost of charging equipment. Qualifying vehicles also have access to carpool lanes.
* Hawaii residents can claim a rebate of 20% of the vehicle's purchase price up to $4,500. Rebates of up $5,000 are available if the purchase includes a charging station.
The Department of Energy maintains a database of federal and state incentives for electric vehicles on its website at http://www.afdc.energy.gov/afdc/laws/
http://money.cnn.com/2010/11/09/auto...dex.htm?hpt=T2
11-09-10, 01:21 PM
#3
The Volt is the only "electric" car that seems practicial. All others have that SEVERE range limitation.
They like to say that something like 90% of people drive less than 40 miles round-trip for work. That's fine. But, what's the percentage of people who NEVER drive their car more than 100 miles? Ever?
The Volt is the only plug-in electric that could really be your ONLY car. All others are a "second" car (or third).
Sorry, not everyone can afford a second car just for commuting...or have the ability to park a second car somewhere (that's a HUGE factor in big cities).
So, if I'm only gonna buy one car, it's gonna be one that meets ALL of my needs, not just one that works "most of the time".
Of course, California doesn't see it that way. Screw practicality. Saving the environment means making sacrifices.
Guess you're just never gonna see grandma again kids, sorry.
They like to say that something like 90% of people drive less than 40 miles round-trip for work. That's fine. But, what's the percentage of people who NEVER drive their car more than 100 miles? Ever?
The Volt is the only plug-in electric that could really be your ONLY car. All others are a "second" car (or third).
Sorry, not everyone can afford a second car just for commuting...or have the ability to park a second car somewhere (that's a HUGE factor in big cities).
So, if I'm only gonna buy one car, it's gonna be one that meets ALL of my needs, not just one that works "most of the time".
Of course, California doesn't see it that way. Screw practicality. Saving the environment means making sacrifices.
Guess you're just never gonna see grandma again kids, sorry.
11-09-10, 03:47 PM
#6
The Volt is the only "electric" car that seems practicial. All others have that SEVERE range limitation.
They like to say that something like 90% of people drive less than 40 miles round-trip for work. That's fine. But, what's the percentage of people who NEVER drive their car more than 100 miles? Ever?
The Volt is the only plug-in electric that could really be your ONLY car. All others are a "second" car (or third).
Sorry, not everyone can afford a second car just for commuting...or have the ability to park a second car somewhere (that's a HUGE factor in big cities).
So, if I'm only gonna buy one car, it's gonna be one that meets ALL of my needs, not just one that works "most of the time".
Of course, California doesn't see it that way. Screw practicality. Saving the environment means making sacrifices.
Guess you're just never gonna see grandma again kids, sorry.
They like to say that something like 90% of people drive less than 40 miles round-trip for work. That's fine. But, what's the percentage of people who NEVER drive their car more than 100 miles? Ever?
The Volt is the only plug-in electric that could really be your ONLY car. All others are a "second" car (or third).
Sorry, not everyone can afford a second car just for commuting...or have the ability to park a second car somewhere (that's a HUGE factor in big cities).
So, if I'm only gonna buy one car, it's gonna be one that meets ALL of my needs, not just one that works "most of the time".
Of course, California doesn't see it that way. Screw practicality. Saving the environment means making sacrifices.
Guess you're just never gonna see grandma again kids, sorry.
And GM said they will try to improve it in 2012/2013.
It is mind boggling.
11-09-10, 04:36 PM
#7
Recovering Lexus Addict
I agree with Habious. All-electric vehicles are great for urban commuters and especially delivery / service vehicles that scoot around town and get charged all night. However, I have a long commute and make 250 mile one-day round trips to visit relatives. An electric utility vehicle or sports car I could drive on weekends would be the only electric options for me.
Then there's the question of comparing pollution or CO2 (which is not a pollutant) of an internal combustion engine v. electricity generated by a coal fired power plant and the inefficiencies involved in electricity transmission and battery storage.
Then there's the question of comparing pollution or CO2 (which is not a pollutant) of an internal combustion engine v. electricity generated by a coal fired power plant and the inefficiencies involved in electricity transmission and battery storage.
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11-09-10, 05:15 PM
#8
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It's called renting. . . it's like those people who get a full-sized pickup to haul that occasional couch once every 2 years. Many Californians I know only use their pickup to commute. It would have cost far less to just rent a pickup for $40 once a year. . .
Some people never really drive that much, ie my friend only put 60,000 miles on his Corolla in 5 years, never taking long trips. A $17k leaf would be significantly more economical. Plus the rapid recharge time of the Leaf is VERY reasonable.
Some people never really drive that much, ie my friend only put 60,000 miles on his Corolla in 5 years, never taking long trips. A $17k leaf would be significantly more economical. Plus the rapid recharge time of the Leaf is VERY reasonable.
11-09-10, 05:18 PM
#9
Lexus Champion
For an individual who rents and doesn't own a house where the charger is to be installed, he or she is discriminated against when it comes to Leaf ownership.
Last edited by tzu911; 11-09-10 at 05:29 PM.
11-09-10, 08:12 PM
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I find it so odd people will justify spending $10,000 more on something bigger than they really need, when they can occassionally rent it for $50/pop. . . if they visit grandma more than 200 times per the life time of the car. . . then maybe. Factor in gas saving and it'll throw the whole thing off the chart. Really, I think it makes sense to rent a nice car when you need it. . . or a truck, or whatever the situation demands. And drive the basic necessity for the day to day. But if you don't care about money, they you probably don't care about fuel economy, so if luxury is the name of the game, yes, it's a fail. But that's not the market for this car. At $17k, this car makes a TON of sense.
11-09-10, 08:24 PM
#12
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Hmm, I wasn't aware that California had paid their estimated $80 billion of debt to allow them to subsidize private sector products $5,000-$8,000 a pop. That's pretty impressive since just this year they were issuing IOU's to its residents. I wonder what California's secret to success is?
11-09-10, 08:34 PM
#13
Until the cost of electricity starts to soar as California's already struggling power grid struggles even more to keep up with the increased demand daily recharging of electric cars will create. Just because you have an outlet in your garage doesn't mean electricity is just always going to be there.
11-09-10, 08:38 PM
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Even if you mark up electricity 400%, based on the estimated power draw of these cars, it will never come close to 50% of the cost for a traditional i.c.e. engine. But yeah, CA's electrical grid sucks. We need more nuclear plants.
