Friday, April 28, 2006

Tax incentive

I found a link that allows you to pick any state and find put what the state offers for tax incentives for buying a hybrid or electric vehicle.

If you look under the state of colorado it shows the amounts avialable for certain cars, which there are about only 6. One offers $4,718 for one year if u purchased a specific Toyota vehicle. There was not one tax credit amount under $1000 even on that list. Thats just unbelievable that we are getting taxed for other people buying cars and then giving them MORE money back. I find that just completely stupid and redundant.

In the state of Wisconsin allows the city to deduct almost the full cost of the vehicle.
"The full deduction is $50,000 for any truck or van with a gross vehicle weight rating (GVWR) of at least 26,000 pounds (lbs.) or a bus with seating capacity of at least 20 adults. The deduction is $5,000 for a truck or van with a GVWR greater than 10,000 lbs. and $2,000 for vehicles under 10,000 lbs."
However, they did starts a clean fuel school bus program, with some of those vehicles. The school runs the busses on biodeisel and files for reimbursement of the funds from the state. The state will incure the entire cost of the fuel being used, even when the biodiesel prices are higher than just petroleum diesel fuel.

So of the uses being provided state wise seems to be more rational that just simple tax credits to buyers of new vehicles. I like how the State of Wisconsin uses state money to fund a clean fuel bus line for the schools. The taxes are applied on the school program, as cost incure. The money is highly reguladed by the state and set aside for the program. If costs are lower than the tax credit amount the tax is allocated back to the people in a form of a utility credit.

Also one of the State Statues requires that "A state excise tax, based on the standard number of British thermal units per gallon generated by each alternative fuel, is imposed on the use of alternative fuels. No tax is imposed on alternative fuels used by vehicles for urban mass transportation of passengers." The state does not tax the excise tax on busses, but on personal vehicles. They are more efficient oh the use of the tax and the money the apply from those taxes.

I simply think that tax breaks on buying a more efficient car is the most efficient way or even a market ability that is necessary.

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