A lot of people today think that electric and hybrid vehicles are new technology, but electric cars have been around since well before combustion engines arrived on the scene. Electric cars were quite popular back in the late 1800s and early 1900s. Even New York City’s first fleet of taxis were electric cars.
So, what happened? Well, the combustion engine was in its infancy. It was difficult to start, using a crank to get it going. Also, there were a lot of fumes and it smelled. This is why electric cars were more popular back then, but the popularity didn’t last. Combustion engine cars were simply cheaper to make and cheaper to buy. In the end, the lower price always wins out.
That’s not the whole story. There were other advancements in combustion engine technology. Not only did you get much more range, but fuel was cheap and abundant. Once they figured out how to do away with the crank to get the engine going, and added a tailpipe to send the exhaust out the back of the car, it all but sent the electric car into near extinction.
Environmental Concerns
Fast forward to modern times and we’re now dealing with an epidemic. Environmental concerns are making their way to the forefront of people’s minds. Pollution, due to more than a century of burning fossil fuels and other pollution, is threatening our planet. Now, people are giving electric and hybrid cars a second look as a means of reducing pollution.
The problem is, electric cars still aren’t cheap. They’re still more expensive than combustion engine cars by as much as 20%. The price is definitely keeping people away from investing in eco-friendly vehicles. To counter this cost, the government has decided to offer a bunch of different incentives and credit to inspire you to buy them.
Tax Credit and Incentives
There’s a lot of research you will have to do on your own before purchasing an electric car. There are a lot of varying factors that depend on what you buy and which state you live in. Federal rules can be difficult to understand, so find a dealer who knows what they’re talking about and bring your own research to the table.
The federal government will grant a tax incentive up to $7,500, but there’s a catch. It’s not a blank check to everyone. You only get the full $7,500 if you owe that much in taxes. If you owe $5,000, then you’ll only get $5,000 in credits. And no, you won’t get the difference. It is what it is. But state-level benefits exist too, but they vary per state. Of course, states like California have better incentives than those who are less environmentally savvy.
The credits will also depend on the side of the battery in the car. Different cars will have different benefits attached to them, so, again, do your homework. Some models will get you more incentives and some don’t have any at all.
