China to Offer Rebate on Alternate Energy Vehicles

Here is an interesting article from Caijing.com.cn. China will apparently offer a similar rebate as the one offered in the United States. Since automobiles in China sell for less than those in the US, this is a larger percentage rebate. The Chinese appear serious about converting their fleet to alternate energy vehicles.

"The government of China is considering providing rebates of up to 50,000 yuan (US$7,300) to buyers of cars powered by alternative technologies, Industry and Information Technology vice minister Miao Wei told Caijing in an interview 12 March. Covered vehicles would include those powered by biofuels, electricity and hybrid systems.

The proposed rebates will range between 10,000 to 50,000 yuan ($US1,500-$7,300) depending on the energy efficiency of the cars, according to Miao, who formerly was president of Dongfeng Motor Corp., China’s third-largest automaker.

The reimbursement plan is being drafted by the Ministry of Industry and Information Technology and the Ministry of Science and Technology, which plan to release a scheme for classifying cars by energy efficiency in two months, Miao said."

Obama Economic Stimulus Plan May Include Help for Car Buyers

The House has already passed its version of President Obama's economic stimulus package and it was somewhere in the neighborhood of $815 billion dollars. It passed without one Republican voting in the affirmative. The Senate is having a little more difficulty, trying to cut out some of the pork and frivolous spending but have somehow managed to raise the price tag over $900 billion.

There is good news in all of this, believe it or not. Sen. Barbara Mikulski, D-Md., won a 71-26 vote to allow most car buyers to claim an income tax deduction for sales taxes paid on new autos and interest payments on car loans. This is a very significant stimulus and is estimated to be worth $1,500 on a $25,000 car. Of course, the down side is having to wait until you file your taxes next year to get the money. Getting a $1,500 refund next year would sure help to make a few payments though.

The best part of the proposal in my estimation is that the interest on the auto loan is tax deductible. It is almost like getting a 0% loan...almost. I am old enough to remember the days when interest paid on credit cards was tax deductible. Now that really helped get the big refunds!