Infrastructure, Not Tax Credit Will Help Sale of Electric Cars
February 9, 2015 Taxation in USA
WASHINGTON D.C. – The sale of electric cars in the USA could have been increased five-fold, if the government had invested into building charging stations instead of offering tax credits on the purchase of environmental friendly cars.
Late last week the US based National Science Foundation issued a new report, suggesting that the uptake and use of electric cars in the USA could be increased by providing more subsidies for the building of charging stations, instead of offering tax breaks for the purchase of environmentally friendly cars.
Currently taxpayers are eligible to receive up to USD 7 500 as a tax credit when buying an electric vehicle, and it is estimated that the tax benefit has been a positive influence in 48.5 percent of taxpayers’ decisions to purchase such a car.
Between 2011 and 2013 the tax credit has resulted in approximately USD 1.05 billion being paid out to taxpayers.
However, in its new report the National Science Foundation indicated that the funds given away as tax credits could be used to fund the building of at least 60 000 new charging stations around the country.
The improvement in infrastructure could have resulted in the sale of at least 5 times as many electric vehicles, ultimately helping an even greater number of people to switch to electric cars.
Photo By: Frank Hebbert