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.