New York Adding $2,000 EV Incentive

Three quarters of US states offer an EV incentive to people who buy a hybrid, plug-in hybrid, electric, or fuel cell car. Despite its overall progressive stance, New York was not one of those states until recently. Starting April 1, New Yorkers will finally be eligible for a rebate of up to $2,000 when they buy an EV. The program was approved last year. At the time, April 1 was set as the latest the incentives could go into effect. Government being what it is, the state decided to wait until the very last day to offer the EV incentive.

Rebates are political hot potatoes. Most electric cars are priced well above what ordinary shoppers can afford, leading to questions about why taxpayers with lower incomes should help finance the purchase of new cars by people with higher incomes. States that are struggling to keep their budgets balanced are often reluctant to offer rebates and tax credits that are seen in some quarters as “budget busters.”

At the federal level, the whole idea of EV incentives may be under review as the new administration reconsiders any and all environmental policies that pertain to limiting human contribution to climate change. So long as the federal tax credit for electric cars remains in place, a New York resident who buys a new EV after April 1 could receive up to $9,500 in various state and federal incentives and credits.

Incentives remain an important consideration for those shopping for an electrified car. In Norway, where government incentives are particularly robust, sales of EVs account for more than 1/3 of all new cars purchased and that nation is looking at 100% EV sales by 2025.

In China, the government is worried it is spending too much money on incentives and has cut its EV incentive program by 20%. Sales promptly fell 74% the very next month. Georgia once had the largest state EV incentive at $5,000. It became a bright spot for electric car sales in America. Then Georgia repealed its rebate program. Sales of EVs plunged nearly to zero.

How America will proceed in its quest to put more EVs on the road from this point forward is anyone’s guess.

Source: Endgadget   Photo credit: matthiasmullie1 via Foter.com / CC BY-SA