The maximum federal tax credit of $7,500 for electric vehicles will be changed to allow an immediate $10,000 rebate and applied to other alternative fuels as well, the Obama administration has proposed in its new budget.
“Making the credit available to a wider range of technologies, removing the cap placed on the number of vehicles per manufacturer that can receive the credit, and allowing for a scalable credit up to a maximum of $10,000 will help increase production of advanced vehicles that diversify our fuel use and bring down the cost of producing such vehicles,” states a Treasury Department explanation.
“Moving eligibility for the credit from the purchaser to the person that sells or finances the sale of the vehicle to the ultimate owner would enable the seller or person financing the sale to offer a point-of-sale rebate to consumers.”
The idea is for consumers to get an immediate break on an alt fuel vehicle purchase, rather than having to pay full boat up front for a tax credit they’ll enjoy later – if they’re savvy enough to file for it.
The actual size of the credit would depend on such factors as battery size and fuel efficiency.