Texas considering $5,000 tax credit for plug-in hybrids on top of federal incentives

$10.3 billion is waiting in the wings for the Volt if GM clears the hurdles

$10.3 billion is waiting in the wings for the Volt if GM clears the hurdles

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With all the talk of the Environmental Protection Agency (EPA) reconsidering allowing states to implement their own fuel-economy emissions and regulations, and the negative flow on effects this would have on carmakers that would be forced to tailor cars to meet varying standards across the country, lawmakers in Texas have offered a glimmer of hope. The state’s Governor, Rick Perry, has revealed that he’s considering implementing a tax break for plug-in hybrid vehicles.

Late last year, the Bush administration signed a tax credit of up to $7,500 for plug-in hybrid and similar high-tech vehicles. Instead of waiting for the federal law to come in, Governor Perry is looking to encourage innovation right now. Speaking the Wall Street Journal, he explained that he supports giving Texans a $5,000 incentive towards the purchase of plug-in hybrid vehicle using funds already paid to reduce emissions.

If it passes Texas legislature, the proposed incentive would be in addition to the federal government’s own plug-in hybrid credit. This means that some buyers would be able to receive up to $12,500 off the price of a new car such as the upcoming Chevrolet Volt.

The story doesn’t end there as the federal government’s maximum tax credit could jump as high as $10,000 if a proposed adjustment in the $700 billion stimulus bill being considered in Washington goes ahead. The only downside to all these credits is that they will come with a limit to how many individual vehicle sales will be eligible. The proposed limit currently stands at 500,000 vehicles, which means if you bought the 500,001st plug-in hybrid you would not get a credit.
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Comments (5)
  1. I still think this will be an awesome little car.
    Now that it's $5,000 cheaper, maybe it's worth it to more people.
    I'll tell you this much, if I were replacing my Expedition, and I didn't have a boat and toys and such, and I had a place to plug it in, I would seriously consider it.

  2. I thing that I'm still waiting on is if I will fit inside this little car! Being over six foot I do not fit in many compact cars...

  3. Laz... have you sat in a prius? when i see this car i really do think they went after the prius segment more than initially thought. it looks like a standard boat of a midsized car (remember i love compacts :p), but it looks like that sort of C/D class that the prius is.. something between.

    i'm 6'2" and 250 lbs (of solid muscle of course) and i have no problem with my focus (when the seats are adjusted properly ofcourse)

    there's a guy on the Mazda3 forums that i track and he's 325 lbs at 6'4"... loves his hatch. but anyways...

    yeah $5000 is going to make this an easier pill to swallow.. but id like to comment on just how stunning this car looks. i really do think that GM could ask 30-40 grand for this car if they were to slap a saab sticker on it and put a normal drive train in it. people will buy it not JUST because its a friggen cheap car to opperate (80 cents for a 40 mile charge anyone???), but cause it IS elegant looking.. it looks like its made well... the interior is NICE...

    SID: NEW SITE LOOKS @$#%&%$#&*(#^_)*#@$ING AMAZING... keep up the good work!

  4. I ride my bike to work.. I have a pretty $$ taste in titanium/carbon fiber frames that run 6k-7k. I don't polute the environment like these stupid battery powered cars.. all the energy to create that material.. then when its old and dead, where do you dispose of those batteries? So anyway, where is my $5000 incentive? I run on beer, a renewable resource.

  5. Hey,
    tried to compile a list of what energy tax credit where, when, why and how (much) ... :)
    Using (rotten) wood for generating energy is the exactly same method already used in Neanderthal. Last time I checked they were extinct...

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