Electric Car Subsidy May Be Boosted in California

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Electric Car Subsidy May Be Boosted in California

 

Buying an electric car in California may soon get you a $4,500 subsidy from the state.

 

The California Air Resources Board is meeting this week to consider boosting the state rebate for purchasing an electric car from $2,500 to $4,500. This money comes from credits purchased by businesses in order to comply with the state’s cap-and-trade program aimed at reducing carbon emissions.

 

Currently the federal government offers a $7,500 tax credit for electric car purchases. However, this subsidy is designed to decrease once the manufacturers of electric cars grow large enough to sell 200,000 cars per company. As the companies reach this threshold (Tesla has already done so), the tax credit decreases in increments.

 

Supporters of increasing the electric car subsidy say these zero-emission vehicles are essential to combatting climate change. They say that these companies need government help to gain a market foothold and compete with conventional vehicles. Those who oppose the subsidies say the government should not be picking winners and losers in the automotive marketplace. They contend that if people want to buy electric vehicles, they should do so without government assistance.

 

The electric car credit is only one issue being considered by the Air Resources Board. The board members may also require fewer carbon emissions by oil companies, bigger subsidies for electric-charging stations, and a requirement that some mass transit systems in the state must buy only hydrogen- or battery-powered buses by 2030.

 

Do you support subsidies for people who purchase electric vehicles?

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