With the electric cars starting to gain ground, you may probably be wondering how much do they really cost. While most people are quite aware of the long-term sustainability and the economic aspect of the cars, only a few actually know the exact cost of these electric vehicles (EV). If you are one of those with very little knowledge on costs, then this article can give you the right information to start with. It is, however, important to point out that due to the unique or advanced technological tools used to make these electric cars run, it is safe to conclude that the retail price of these EV’s is higher than the gasoline-powered cars.
The good news is – you need not cover the entire cost. There are now state legislatures that offer incentives to buyers of electric vehicles If you could recall, the same process was implemented during the US recession when rebates were provided to those who bought new vehicles to help out the dwindling industry of car manufacturing. However, the difference, this time, is that incentives are given to buyers of new vehicles to encourage more people to give the EV’s a chance. The incentive offers an excellent help to those who are in the process of changing their ride to electric cars.
Federal Tax Credits for Electric Vehicles
One of the essential information you need to know prior to purchasing electric vehicles is a number of federal tax credits that you are entitled. For pure electric vehicles, the credit is equivalent to $7,500. One of the basic criteria to avail is that you need to file taxes the year that follows. For the plug-in hybrid electric vehicles ( also known as the PHEVs), the federal tax credit may depend on the model. However, it generally ranges from $2,500 -$5,5o0. You may check with the dealers to better understand the amount of these tax credits.
When it comes to tax credits on state-level, the amount or range varies from one state to another. Note that state legislature are changing and this includes incentives given to buyers of electric vehicles or hybrid cars. Aside from the state itself, the difference in tax incentives is also dependent on the model or type of the batteries used. The amount is also based on the survey and studies performed by the federal and state governments. Get to know the 10 states that offer the largest incentives to buyers of electric cars.
States with the Biggest Incentives
One of the states that used to have the highest incentives covering around $6,000 plus the $7,500 from the federal tax credit is the state of Colorado. You can avail the cheapest electric vehicles in the said state. However, the federal state of Colorado has just passed a new house bill no. 1332 which is also known as the “flat tax” . The incentive has been pegged t $5,000 which gives taxpayers the opportunity for a big refund.
Before the onset of July 2015 , there was a debate that encouraged state lawmakers to pass a transformation bill which is the opposite of tax incentives. Georgia had been considered the most generous tax credit-friendly state. The amount of state tax credit is now worth $5,000. In addition , the federal tax credit is as high as $7,500 giving a total of $12,500.
The tax state can South Carolina is equivalent to $3,000 much less than in other states, but in the federal government is just same. The taxpayers in this state are known as Eco-friendly vehicles owner. The sales of electric vehicles continue to surge in this state. This state also encourages the auto users to make sure that all automobiles pass the partial zero emission test.
The State of Louisiana has the same incentives tax credit as South Carolina which amounts to$3,000 while for the federal government, it is still $7,500. Buying electric cars also prove to be one of the best ways to go around New Orleans.
The wonderful State of Maryland offers any individual taxpayer excise tax credit of $3,000 for only vehicles or specific electric cars regardless of whether they own it or it was only for lease. The State have likewise proposed rebates for electric vehicle charging station that been installed for individual .The said rebate ranges from $900 to $5,000.
The State of California has always been known as the most aggressive and concern for green vehicles. Manufacturers are required to pass and get certified before being able to sell electric vehicles. Qualified buyers are entitled to incentives or tax credit from the state government . Such credit is $2,500 for Evs and $1,500 for PHEV. Federal tax credit of $7500 is also applicable.
The State of Texas intends to be involved in green car manufacturing and promotion so that taxpayers in the said state have the privilege to avail the incentives for all automobile users. Under Legislature Bill and as per the Commission on Environment, any qualified taxpayers are entitled to the program for tax credit incentives up to $2,500. Updates on the tax credit incentives should be checked prior to purchasing electric cars in this state.
Automobiles in the State of Michigan are all made and manufactured from the land of the rising sun “Japan”. In this particular state ,you can’t avail an automobile from Tesla. However, you can still avail of the tax credit incentive of $2500 if you wish to purchase electric vehicles and as long as you have a charging box at home.
Massachusetts’ taxpayers with electric cars are qualified to the state incentives car credit of up to $2,500. And some may also be qualified to other incentive programs such as with Prius plug-in purchase, a $1,500 rebate is given. Even when purchasing electric motorcycles, the rebate will also be given amounting to$700. The rebate program will be last until the year 2017. All vehicles qualified for rebates are those which have been purchased after 18th of day June 2014.
Only purchased vehicles that are either Electric Cars or Plug-in Hybrid can avail of the $2500 rebate in the said state. Pennsylvania also offers a rebate of $500 to both electric motorcycles and electric scooters.
Other Reasons to Purchase Electric Vehicles
Aside from the whopping rebates and tax credits offered to buyers of electric cars, there are other reasons to make that switch. The automobile manufacturers are nowadays are focused more building green cars that are both sustainable and economical in the long run. They also wanted to contribute a small yet lasting solution to what the world facing now — Global Warming. Energy security and fuel economy are also the top two reasons why switching to electric vehicles make a lot of sense. With the emerging conflicts between nations, the resources for oil supply may be impacted sooner or later. Being ‘zero emission’ vehicle is also one of the criteria which make electric cars a better option today.
The availability of infrastructure such as the public charging stations is also a top reason for people to purchase electric cars. Refueling cars may be still convenient now, but the long-term economic benefit of using electricity will soon be realized by many. There are now about 13, 000 charging stations but the target is to create as many as 33,000 stations in just a matter of few years. The batteries used for electric vehicles can also be either bought or leased. The flexibility in the option makes it a viable option to those who are only interested in understanding the technology first. For these reasons, electric cars will remain one of the most in-demand cars of today and in the coming years.