Texas To Offer $2,500 Tax Credit For Alt-Fuel Vehicles

Though Texas may not be a fan of Tesla’s direct sales model, the Lone Star state is ready to offer alternative-fuel vehicle buyers some extra cash. As soon as next week, buyers of CNG, propane, plug-in hybrid, and electric vehicles will be eligible for a $2,500 state tax credit. Combined with the $7,500 Federal tax credit, this could chop $10,000 off the cost of a new alt-fuel vehicle.

The credit only applies to vehicles with a Gross Vehicle Weight Rating (GVWR) of 9,600 pounds or less, which is generous enough to apply to many commercial vehicles like the VIA X-Trux. The only other eligibility factor is that EVs must have a battery size of at least 4 kWh, a low barrier of entry that applies to pretty much every hybrid or EV out there, including the Chevy Volt. I wonder if this isn’t also an olive branch to Tesla Motors in a bid to bring the Tesla Gigafactory to Texas.

Actually, scratch that; the tax credit doesn’t apply to Tesla vehicles as they’re “illegal” to sell in Texas, requiring customers to jump though numerous hoops to get their EVs.

Alas, this tax credit is also limited-time offer, expiring in next August and with just enough funding to pay for 2,000 CNG/LPG and 2,000 electric or plug-in hybrid vehicles. With 26 million people calling Texas home and more than 1.275 million new car sales in 2012 alone, this tax credit isn’t likely to make it to next year. It’s an interesting dichotomy going on in Texas, a state where green energy is big business, but dug-in interests seem are doing what they can to halt the march of progress.

If you’re a resident of Texas in the market for a cleaner car, you might want to get a jump on this offer while you can.

Source:  Charged

What It Takes To Buy A Tesla Model S In Texas

Elon Musk is on a very-public crusade to challenge the established car dealership lobby, and while he has had some success at the state level, he has also lost in one of America’s largest car markets; Texas. A recent report highlights just how many hoops you have to jump through if you want to buy a Tesla Model S in the Lone Star State.

Because of very strong dealership franchise laws and a buttload of lobbying money, Tesla store representatives are prevented from giving you any kind of pertinent of useful information related to pricing. That means potential buyers are in the dark regarding costs, tax credits, financing, and leasing options. Tesla sales people can’t even offer test drives, and many customers leave the two Texas-area stores frustrated due to lack of info.

The most Tesla store reps can do in Texas is refer you to the website. If you actually want to buy a Tesla Model S, you have to do so through a California dealership. Tesla will then ship you your car on an unmarked transport with no new-car orientation or anything. They drop off the car and you’re on your own.

It’s the same case with Tesla-owned service centers, which cannot advertise that they offer Tesla service, or even display the Tesla Motors logo. They can’t even tell customers if there is a problem with their car; all that info has to be re-routed through Tesla’s California headquarters. Texas Tesla Model S are ineligible for Tesla’s buyback program, and because the sales are handled as out-of-state transactions, some customers are paying a higher interest rate, if they can get financed at all.

Even so, Tesla has managed to sell over 1,000 Model S sedans in Texas, though those numbers would no doubt be much higher if it were easier to buy the electric car. This has Musk considering a campaign on Washington to dismantle dealership franchise laws nationwide. It won’t be an easy fight, but it could have far-reaching consequences for more than just Tesla.

Source: Green Car Reports