Just about everyone wants to save energy and reduce his or her environmental footprint on the world. There are many methods people and companies employ to save energy, including using energy-saving appliances, utilizing solar power, recycling and even using electric or hybrid cars in order to reduce the levels of harmful gases in the environment, including carbon dioxide. Since their inception, electric cars have continued to grow in popularity and more and more drivers are selecting them when it comes time to get a new vehicle.
Tax Incentives Are Attractive
Besides the environmentally friendly and gas-saving attributes that these vehicles provide, there is another popular benefit for those who choose electric. Many of these cars also include tax credits and other financial benefits. These tax breaks and financial incentives are a great way for buyers to manage the expensive price tags that usually accompany these cars. However, as more and more customers choose electric over internal-combustion vehicles, some wonder if the majority of these electric owners really need such a tax break incentive. It would seem that saving money would be OK for all, but some people are critical of these incentives because a lot of the tax breaks are going to wealthy buyers, which critics feel is unnecessary.
Who’s Getting the Money?
In fact, many owners of electric vehicles could very likely afford their vehicles without the tax break. A recent study by the Energy Institute of Haas, at the University of California showed that most electric car tax credits actually go to wealthier households. In fact, according to the study, 60 percent of the $18 billion in tax credits for electric vehicles purchased between 2006 and 2012 went to families or individuals making more than $200,000 a year. By comparison, about 10 percent of the total tax credits were distributed to families that earn less than $75,000 a year. To sum it all up, six out of every $10 that were given in electric car tax credits ended up going to the top 10 percent of the country’s highest earning households.
Tax Breaks for All
Remember, however, that if you’re in the market for an electric car, you can get these incentives no matter what your income level is. This data just shows that the majority of individuals who buy electric cars appear to be people in higher-income brackets. With automakers like Tesla and BMW getting into the electric car race many buyers can’t afford these types of vehicles, which means the people who can afford them probably don’t need a tax incentive. However, just because higher-income owners might not necessarily need an extra tax incentive that shouldn’t preclude them from receiving one. They are still doing their part do reduce harmful emissions and cut back on oil consumption.
Go Electric, Get a Tax Break
So whether or not you think it’s unfair that the many of the country’s wealthiest individuals are receiving these tax breaks, the fact is they will continue to get them unless the government decides to change the rules of the program. In the meantime, you too can earn a tax break incentive if you want to go electric.