Senator Stabenow Proposes $7,500 Electric Vehicle Tax Rebate

Drivers who opted for a hybrid or other energy efficient vehicle could experience even greater savings thanks to a Michigan senator who’s pushing for a new electric vehicle tax rebate. The rebate would offer a $7,500 tax credit to those who purchase electric cars, as well as extend some previously-expired credits for hybrid vehicle buyers.

Electric and Hybrid Vehicles Could See Tax Breaks

Michigan senator, Deborah Stabenow, is pushing for tax incentives that would provide a $7,500 tax rebate to those who purchase electric vehicles. Unlike typical vehicle incentives, the rebate would offer buyers the money immediately instead of making them wait for a tax credit that they wouldn’t receive until they filed the following year.

In addition to the electric vehicle rebate, Stabenow proposed to extend some hybrid vehicle credits that have already expired to 2014. The credits could worth up to $100,000 and include SUVs, cars and even large trucks that showed appreciable increases in city fuel economy (10-20 percent) over their previous models.

Stabenow also proposed a measure that would ask for sweeping tax subsidies for smart grid systems, investments in storage properties and $2 million in grants for more investments in the construction of vehicle batteries.

The senator originally proposed these tax adjustments on Aug. 5, but since they weren’t strongly considered in the previous session, she is re-introducing her proposal in the latest Congress session.

Car Dealers Concerned about Proposed Incentives

A new USA Today article revealed that while the new tax incentives proposed could be popular with buyers, the nation’s car dealers are worried they will be stuck with the task of figuring out who is qualified for cash back.

The National Automobile Dealers Association (NADA) expressed worries that any new tax rebate system would put unnecessary burden on its members. Dealers would be expected to determine a buyer’s tax status in the showroom.

While it said that the tax-credit system in place now works well and shouldn’t change, it is willing to examine the proposal closely once the specifics are made public to determine whether it actually makes sense for both consumers and dealers.