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.
2011 Chevrolet Volt Production model