Dealers may offer tax refunds instead of IRS;
Posted on May 18, 2011
Filed Under Auto Industry News
The U.S. Transportation Secretary said that dealerships could be the ones responsible for giving out $7,500 tax incentives to buyers instead of the IRS as early as 2012. Congress is currently considering this proposal among other changes to tax and energy policies in the United States. Models like the Chevy Volt which will be sold at a Florida Chevy Dealer are some of the vehicles that are eligible for the tax rebate. However traditional gasoline models like the Chevrolet Impala and others are not eligible. The change was proposed earlier this year by the Obama administration. The way that the system is currently set up at the moment, those who purchase a vehicle that is eligible for the $7,500 tax incentive receive a refund when they file their federal income tax return.
Tax incentives help Brooklyn Park Chevrolet and other dealerships sell more hybrid and electric vehicles, and are important for the transition between gasoline and electric vehicles. At the moment Congress is debating whether or not to implement these changes among other updates to tax and energy laws. The incentives will continue into 2012 and are an important part of encouraging buyers to purchase alternative energy vehicles. Automakers like Nissan are focusing more on alternative energy vehicles, and Nissan is building a $1.6 billion electric vehicle battery plant in Smryna, Tennessee which will be the largest lithium ion battery in the United States.
Vehicles like the Nissan Leaf, Chevy Volt or other qualifying vehicle are eligible for the $7,500 tax refund which dramatically drops the price of these vehicles, and buyers receive the refund when they file their tax returns. If auto retailers are allowed to handle the incentive, buyers will not have to wait until they file their tax returns to receive the benefit of the refund. This is also thought to help encourage more customers to buy electric vehicles due to the more immediate reward.
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