Tax Breaks for Electric Cars Used Only By Wealthy
September 25, 2015 Taxation in USA
WASHINGTON D.C. – Tax breaks for electric cars, solar panels and other green-technology in the USA are not being used by everyday people but by the country’s richest individuals.
New analysis completed by the researchers from the University of Carolina shows that tax breaks in the USA aimed at encouraging consumers to use green technology is being used almost exclusively by the richest people in the country.
Currently the federal government is offering tax credits of up to USD 7 500 for the purchase of electric vehicles, in an effort to encourage the use of such environmentally friendly technology.
However, over the course of 2006 to 2012, the latest years for which data was available, approximately 90 percent of these tax breaks were taken by the top 20 percent of earners in the country.
It was also confirmed that other green tax breaks saw a similar distribution, with the wealthiest individuals taking advantage of credits for solar panel installations, credits for alternative-fuel vehicles, and residential energy improvements.
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