When it comes to pushing a new technology out, there are no better ways then incentives in the form of tax cuts and financial rebates. Different governments handle things differently. Find out what works, and what raises questions.
The gist is that while most car companies are scrambling to develop electric drive technologies while keeping it affordable and profitable, they also have to work with governments who try to balance an even bigger picture, that of maintaining a healthy economy. Different countries tackle problems differently, which accounts for sales of certain vehicles doing better in certain places, and not as well elsewhere.
West Vs East.
Comparing how both the West reacts and how the East tackles things is always enlightening. Having fundamental different ways of approaching solutions, Asia and western countries meet challenges differently. For instance, the Honda Insight sales have outperformed expectations in Asia but have not done nearly as well in the U.S., according to Earth2Tech. Upon further research, it seems to point to the higher price of gas in Asia.
Back To Gas Price.
If gasoline is cheap in the U.S., it is not in Japan, nor is it in Europe where smaller fuel efficient car sales are still holding up. If Asia, Europe and the U.S. offer somewhat similar tax incentives for hybrids and pure electric vehicles, EV, the results vary according to the price of gas at the pump. The U.S. still has cheap gas which has not deterred consumers from gas guzzlers... at least for now.
Certain countries adopt radical solutions that may put them well ahead of the curve in the long run. Denmark taxes gas cars 180%, via the Denmark site, which is a sure deterrence. Sweden has cut its fossil fuel energy buy more than 50%, according to the Regeringen. Most of it comes from hydro and other alternative sources. Mostly, what we can witness is that countries where gas is highly taxed offer more fuel efficient cars, which is logical. What it should do is pause for reflection and consider why car makers in Asia and Europe are doing ever so somewhat better than we have in the U.S.. Maybe there is something to higher gas taxes, if it does in a controlled and intelligent way.
Until the U.S. coherently tackles the problem of cheap gasoline and continues strong incentives toward cleaner cars, the fuel efficient car sales will lag behind others which will hold it back in the long run. Thankfully, OPEC is working to raise the price of gas, helped by investors coming back into the speculative petroleum market.
Showing posts with label Hybrid Auto Tax Credit. Show all posts
Showing posts with label Hybrid Auto Tax Credit. Show all posts
Monday, June 22, 2009
Sunday, June 14, 2009
Hybrid Tax Credit Available for Colorado Looming
As we near the last two state quarters available for existing tax credits, perhaps it’s not a bad idea to examine what hybrid tax credit qualifications are available.
According to a recent news story by ABC News Channel 13, KRDO.com, a deadline for available tax credits in the state of Colorado is looming. Governor Bill Ritter signed House Bill 1331 this week.
The bill will replace existing hybrid tax credits with a more expansive range of cars that are eligible to receive the credit, while phasing out other cars that are currently eligible.
Automobile manufacturers such as Toyota, Honda, and Ford produce hybrid vehicles that meet gas mileage and emission standards and qualify for a tax credit.
Although there are limits as to the amount of tax credits the federal government gives out. Once the manufacturer has sold 60,000 of a particular model the tax credit is no longer provided.
The state has an index discussing different aspects of the alternative fuel tax credit. Please see the web site to evaluate whether you would meet any of these tax credits when considering a hybrid purchase.
What does this have to do with the oil and gas industry here in Denver? I would answer that question in the most profound way I am able to come up with – it depends on how you look at it.
I believe every industry impacts the other, and, while this may factor into conservation of oil in the short term, it is important to note that oil and gas is utilized for so many other aspects of our everyday lives it is mind boggling to think about sometimes.
However, I think when prices are high as they were a year ago; consumers are prompted to take a closer look at how they personally use the most evident oil product in their lives and that is the fuel in their automobiles.
I fear, however, with the lower price of fuel at the pump in recent months, consumers are going back to their old behavior patterns, and the tax credit incentives may not be enough.
According to a recent news story by ABC News Channel 13, KRDO.com, a deadline for available tax credits in the state of Colorado is looming. Governor Bill Ritter signed House Bill 1331 this week.
The bill will replace existing hybrid tax credits with a more expansive range of cars that are eligible to receive the credit, while phasing out other cars that are currently eligible.
Automobile manufacturers such as Toyota, Honda, and Ford produce hybrid vehicles that meet gas mileage and emission standards and qualify for a tax credit.
Although there are limits as to the amount of tax credits the federal government gives out. Once the manufacturer has sold 60,000 of a particular model the tax credit is no longer provided.
The state has an index discussing different aspects of the alternative fuel tax credit. Please see the web site to evaluate whether you would meet any of these tax credits when considering a hybrid purchase.
What does this have to do with the oil and gas industry here in Denver? I would answer that question in the most profound way I am able to come up with – it depends on how you look at it.
I believe every industry impacts the other, and, while this may factor into conservation of oil in the short term, it is important to note that oil and gas is utilized for so many other aspects of our everyday lives it is mind boggling to think about sometimes.
However, I think when prices are high as they were a year ago; consumers are prompted to take a closer look at how they personally use the most evident oil product in their lives and that is the fuel in their automobiles.
I fear, however, with the lower price of fuel at the pump in recent months, consumers are going back to their old behavior patterns, and the tax credit incentives may not be enough.
Hybrid Tax Credit: 2010 Ford Fusion and Mercury Milan Highest
Boosting mpg is one thing, but just in time for tax season, the 2010 Ford Fusion and Mercury Milan promise to boost your rebate, too.
To the Ford Fusion hybrid’s list of highs—mpg, style, and fun factor in a hybrid—add one more: tax credit. Ford has announced that the hybrid Fusion and its mechanical twin the Mercury Milan qualify for the nation’s highest hybrid-vehicle tax credit, $3400.
But there’s a catch, and a well-timed one at that. Tax credits only apply to the first 60,000 hybrid vehicles sold by a manufacturer after January 1, 2006. Ford sold its 60,000th hybrid in the fourth quarter of 2008, and tax-credits have half-lives.
Therefore, beginning in the second quarter of 2009 (April 1), the Fusion hybrid tax credit will be reduced by half, to $1700, and by half again, to $850, in quarter three (starting October 1).
Honda and Toyota surpassed the 60,000-vehicle mark long ago and have already run through their draw-down periods, so buyers of their hybrids are no longer eligible for tax credits.
After April 1, 2010, there will be no tax credit on hybrid Fords, either. So if you were debating when to buy that hybrid Fusion, consider that buying before tax time this year will increase your credit substantially.
Buying the Fusion hybrid at the full tax credit also makes for an interesting comparison to the standard Fusion. Starting at $27,995, the hybrid’s standard-equipment roster is nearly identical to the $24,700 Fusion SEL’s.
The hybrid’s four-cylinder is a little down on power compared to the SEL’s, but the electric motor keeps them close in the stop-light drags, and who’s drag-racing hybrids, anyways?
Subtract the hybrid’s tax credit and it sells for $24,595, making the only real reason to buy an SEL in the next two months a serious lust for leather. Which we understand. It’s the same story for the Milan hybrid.
To the Ford Fusion hybrid’s list of highs—mpg, style, and fun factor in a hybrid—add one more: tax credit. Ford has announced that the hybrid Fusion and its mechanical twin the Mercury Milan qualify for the nation’s highest hybrid-vehicle tax credit, $3400.
But there’s a catch, and a well-timed one at that. Tax credits only apply to the first 60,000 hybrid vehicles sold by a manufacturer after January 1, 2006. Ford sold its 60,000th hybrid in the fourth quarter of 2008, and tax-credits have half-lives.
Therefore, beginning in the second quarter of 2009 (April 1), the Fusion hybrid tax credit will be reduced by half, to $1700, and by half again, to $850, in quarter three (starting October 1).
Honda and Toyota surpassed the 60,000-vehicle mark long ago and have already run through their draw-down periods, so buyers of their hybrids are no longer eligible for tax credits.
After April 1, 2010, there will be no tax credit on hybrid Fords, either. So if you were debating when to buy that hybrid Fusion, consider that buying before tax time this year will increase your credit substantially.
Buying the Fusion hybrid at the full tax credit also makes for an interesting comparison to the standard Fusion. Starting at $27,995, the hybrid’s standard-equipment roster is nearly identical to the $24,700 Fusion SEL’s.
The hybrid’s four-cylinder is a little down on power compared to the SEL’s, but the electric motor keeps them close in the stop-light drags, and who’s drag-racing hybrids, anyways?
Subtract the hybrid’s tax credit and it sells for $24,595, making the only real reason to buy an SEL in the next two months a serious lust for leather. Which we understand. It’s the same story for the Milan hybrid.
Energy Tax Credits by 2009 Stimulus Plan
One way the government hopes its 2009 economic stimulus plan will help jumpstart the economy is by investing billions of dollars in industries that support energy efficiency - everything from electric car battery technology to wind turbines to modernizing the country's power grid.
Corporations aren't the only ones receiving incentives, however: Individual taxpayers can reap considerable tax benefits by improving their home's energy efficiency - not to mention the long-term savings they'll incur from reducing their utility and fuel bills.
Here are a few highlights:
l The total tax credit you can claim for many energy-efficiency home improvements made during 2009 and 2010 has increased from $500 to $1,500. That's a cumulative total of $1,500, so you can break it up between the two years however you choose.
l You may now claim a tax credit for 30 percent of the purchase price for a variety of home improvements, up to the $1,500 limit. Credit for installation costs is also allowed in certain cases, such as for HVAC (heating, ventilation and air conditioning) systems, biomass stoves, water heaters, solar panels, geothermal heat pumps, wind energy systems and fuel cells.
Tax credits for many energy-efficiency home improvements that were previously allowed in 2006 and 2007 but then disallowed in 2008 are once again eligible during 2009 and 2010. Some common covered expenses include:
l Home shell improvements designed to prevent heating and cooling leaks, including insulation, metal and asphalt roofs, exterior and storm windows, doors (including patio and sliding glass), skylights and weather stripping.
l HVAC systems, including central air conditioning, air-source and geothermal heat pumps, and natural gas, propane and oil furnaces.
l Gas, oil, propane, solar and electric heat pump water heaters.
l Biomass (plant matter) stoves.
l Other renewable energy technology including small wind generators and photovoltaic systems.
l Hybrid, diesel, battery electric, alternative fuel, fuel cell and plug-in electric cars.
Note that there are specific requirements and restrictions for each of these products, so be sure to do your research before purchasing them. For example, with vehicles, there are only a finite number of credits available per manufacturer, so verify with the dealer.
A good resource for rules is the government's Energy Star Web site, which has detailed information on the various tax credits available (www.energystar.gov/taxcredits).
A few additional tips:
l Experts agree that before making major investments like HVAC systems or solar panels, you should first improve your home's insulation. Proper insulation can reduce your heating and cooling bills by 20 percent or more.
- Save all receipts and ask contractors to separate labor and materials costs in case you are ever audited. Also keep copies of manufacturer certification statements for your records.
l Even though they aren't covered under the federal tax credit program, many other Energy Star appliances like refrigerators, washing machines and dishwashers may qualify for certain state and local rebate programs. These energy-efficient appliances consume up to 50 percent less electricity and water than standard models. Ask for details where you buy the appliance.
Feel good about the impact you can have on the environment - and on your wallet - by taking advantage of these energy-efficiency tax credits.
Corporations aren't the only ones receiving incentives, however: Individual taxpayers can reap considerable tax benefits by improving their home's energy efficiency - not to mention the long-term savings they'll incur from reducing their utility and fuel bills.
Here are a few highlights:
l The total tax credit you can claim for many energy-efficiency home improvements made during 2009 and 2010 has increased from $500 to $1,500. That's a cumulative total of $1,500, so you can break it up between the two years however you choose.
l You may now claim a tax credit for 30 percent of the purchase price for a variety of home improvements, up to the $1,500 limit. Credit for installation costs is also allowed in certain cases, such as for HVAC (heating, ventilation and air conditioning) systems, biomass stoves, water heaters, solar panels, geothermal heat pumps, wind energy systems and fuel cells.
Tax credits for many energy-efficiency home improvements that were previously allowed in 2006 and 2007 but then disallowed in 2008 are once again eligible during 2009 and 2010. Some common covered expenses include:
l Home shell improvements designed to prevent heating and cooling leaks, including insulation, metal and asphalt roofs, exterior and storm windows, doors (including patio and sliding glass), skylights and weather stripping.
l HVAC systems, including central air conditioning, air-source and geothermal heat pumps, and natural gas, propane and oil furnaces.
l Gas, oil, propane, solar and electric heat pump water heaters.
l Biomass (plant matter) stoves.
l Other renewable energy technology including small wind generators and photovoltaic systems.
l Hybrid, diesel, battery electric, alternative fuel, fuel cell and plug-in electric cars.
Note that there are specific requirements and restrictions for each of these products, so be sure to do your research before purchasing them. For example, with vehicles, there are only a finite number of credits available per manufacturer, so verify with the dealer.
A good resource for rules is the government's Energy Star Web site, which has detailed information on the various tax credits available (www.energystar.gov/taxcredits).
A few additional tips:
l Experts agree that before making major investments like HVAC systems or solar panels, you should first improve your home's insulation. Proper insulation can reduce your heating and cooling bills by 20 percent or more.
- Save all receipts and ask contractors to separate labor and materials costs in case you are ever audited. Also keep copies of manufacturer certification statements for your records.
l Even though they aren't covered under the federal tax credit program, many other Energy Star appliances like refrigerators, washing machines and dishwashers may qualify for certain state and local rebate programs. These energy-efficient appliances consume up to 50 percent less electricity and water than standard models. Ask for details where you buy the appliance.
Feel good about the impact you can have on the environment - and on your wallet - by taking advantage of these energy-efficiency tax credits.
Consumers to Buy A New Car for Decent Credit Now
Buying conditions that favor consumers are not uncommon in an economic downturn.
Savings can be found on impulse buys and small-ticket items, and the more one spends, the better the savings become. That leads many to believe this is one of the best times ever to buy or finance a new car.
Stuart Lasser, president of Subaru Kia of Mount Olive, as well as three other dealerships, believes things are working both in favor of — and against — the consumer.
"You still need to have decent credit to be able to finance," Lasser said. "It's marginally better than it was two or three months ago, and easier than it was three or four months ago, but not as easy as it was a year or two ago."
Finding the right car at the right time is still the most important priority for any consumer, but it might make sense to shorten the time period a bit. If one had not planned on purchasing a new car until the end of this year, now may be the time to begin shopping around.
"There are some very low-rate programs from the manufacturers," Lasser said. "If you have decent credit right now, you can make a good deal for yourself.
"If your credit is really shaky right now but your car is running OK — keep driving it," Lasser said. "If you've been thinking about a new car and you have good credit, now is the time to look for one."
Prices are being cut, and direct rebates from manufacturers and dealerships are being offered. But the best way to cash in might be through financing. A good credit score now will make financing a new car cheaper than almost any other time.
"What's happened is the auto industry has slowed production," said David Ayers, president of Ayers Chevrolet. "They're heavily incentivizing cars to move along the line of production," he said of the various programs to attract buyers.
Ayers agrees that credit is still the number one thing to have in order before attempting to buy or finance a new car.
"A much higher standard is put on the credit score than there was a year ago," Ayers said. "It's important to have verifiable credit because a loan at a reasonable rate is hard to find."
The highest rebates are attached with the most expensive cars. The make and model does not affect the rebate as much as the price tag does.
Ayers sees it as a good time to get maximum value for a trade-in.
"Rental companies are holding onto cars longer because leasing is not as attractive as it once was," Ayers said. "The availability of fresh used vehicles is smaller than it once was. This has pushed the market for used cars up. A car today would have a higher trade-in value than a car in the same condition would a year ago."
"If you have a car you would feel comfortable selling to a relative or friend, now is the time to trade it in," Lasser said.
Not many dealerships are reverting to gimmicks or come-ons in an attempt to get people to purchase from them. Having an honest relationship, with decent rates and payments on time is all either side seems to be looking for right now.
"We've never been a dealership that has sold a lot of back-end products," Lasser said. "We don't put extras on the car unless people want them. Sometimes we sell extended warranties. We're just selling cars — not doing anything extraordinary."
Savings can be found on impulse buys and small-ticket items, and the more one spends, the better the savings become. That leads many to believe this is one of the best times ever to buy or finance a new car.
Stuart Lasser, president of Subaru Kia of Mount Olive, as well as three other dealerships, believes things are working both in favor of — and against — the consumer.
"You still need to have decent credit to be able to finance," Lasser said. "It's marginally better than it was two or three months ago, and easier than it was three or four months ago, but not as easy as it was a year or two ago."
Finding the right car at the right time is still the most important priority for any consumer, but it might make sense to shorten the time period a bit. If one had not planned on purchasing a new car until the end of this year, now may be the time to begin shopping around.
"There are some very low-rate programs from the manufacturers," Lasser said. "If you have decent credit right now, you can make a good deal for yourself.
"If your credit is really shaky right now but your car is running OK — keep driving it," Lasser said. "If you've been thinking about a new car and you have good credit, now is the time to look for one."
Prices are being cut, and direct rebates from manufacturers and dealerships are being offered. But the best way to cash in might be through financing. A good credit score now will make financing a new car cheaper than almost any other time.
"What's happened is the auto industry has slowed production," said David Ayers, president of Ayers Chevrolet. "They're heavily incentivizing cars to move along the line of production," he said of the various programs to attract buyers.
Ayers agrees that credit is still the number one thing to have in order before attempting to buy or finance a new car.
"A much higher standard is put on the credit score than there was a year ago," Ayers said. "It's important to have verifiable credit because a loan at a reasonable rate is hard to find."
The highest rebates are attached with the most expensive cars. The make and model does not affect the rebate as much as the price tag does.
Ayers sees it as a good time to get maximum value for a trade-in.
"Rental companies are holding onto cars longer because leasing is not as attractive as it once was," Ayers said. "The availability of fresh used vehicles is smaller than it once was. This has pushed the market for used cars up. A car today would have a higher trade-in value than a car in the same condition would a year ago."
"If you have a car you would feel comfortable selling to a relative or friend, now is the time to trade it in," Lasser said.
Not many dealerships are reverting to gimmicks or come-ons in an attempt to get people to purchase from them. Having an honest relationship, with decent rates and payments on time is all either side seems to be looking for right now.
"We've never been a dealership that has sold a lot of back-end products," Lasser said. "We don't put extras on the car unless people want them. Sometimes we sell extended warranties. We're just selling cars — not doing anything extraordinary."
Monday, June 1, 2009
Japan's May Incentives Boost Hybrid Vehicles Sales
Japanese incentives for ecological gadgets are helping lift electronics sales, according to ministry and industry data, in what may be an early sign of some recovery in a recession-battered economy.
Under a government stimulus package, that kicked in May 15, people who buy energy-efficient flat-panel TVs, refrigerators and air conditioners accumulate "eco-points," which the government promises will convert to discounts or trade-ins for products that have yet to be announced.
Despite the mystery of what the perks may be, the Ministry of Economy, Trade and Industry said electronics sales were up 50 percent during the week after the "eco-point" system started, compared to the same period last year.
Last week they were up 30 percent from a year earlier, the ministry said.
Gfk Marketing Services Japan, a private sector researcher that monitors sales data at about 4,500 electronics stores nationwide, found sales of flat-panel TVs were up 60 percent in the May 18-24 week from a year earlier.
Sales of refrigerators were up 9 percent for that week, Gfk said Monday.
Green gadget incentives are part of a larger government package meant to wrest the world's second largest economy from its worst recession in postwar history.
Japan has also made gas-electric hybrid vehicles tax-free and reduced taxes on other ecological vehicles.
Sales of both the Prius hybrid from Toyota Motor Corp. and the Insight hybrid from Honda Motor Co. are booming in Japan.
Orders for the Prius nationwide have topped 110,000, although Toyota had targeted selling just 10,000 Prius cars a month. Honda's Insight was Japan's top-selling car in April, the first time a hybrid clinched that spot.
A separate cash-for-clunkers incentive of up to 250,000 yen ($2,500) for trading in a vehicle 13 years or older won legislative approval Friday, and will take effect in coming weeks.
Under a government stimulus package, that kicked in May 15, people who buy energy-efficient flat-panel TVs, refrigerators and air conditioners accumulate "eco-points," which the government promises will convert to discounts or trade-ins for products that have yet to be announced.
Despite the mystery of what the perks may be, the Ministry of Economy, Trade and Industry said electronics sales were up 50 percent during the week after the "eco-point" system started, compared to the same period last year.
Last week they were up 30 percent from a year earlier, the ministry said.
Gfk Marketing Services Japan, a private sector researcher that monitors sales data at about 4,500 electronics stores nationwide, found sales of flat-panel TVs were up 60 percent in the May 18-24 week from a year earlier.
Sales of refrigerators were up 9 percent for that week, Gfk said Monday.
Green gadget incentives are part of a larger government package meant to wrest the world's second largest economy from its worst recession in postwar history.
Japan has also made gas-electric hybrid vehicles tax-free and reduced taxes on other ecological vehicles.
Sales of both the Prius hybrid from Toyota Motor Corp. and the Insight hybrid from Honda Motor Co. are booming in Japan.
Orders for the Prius nationwide have topped 110,000, although Toyota had targeted selling just 10,000 Prius cars a month. Honda's Insight was Japan's top-selling car in April, the first time a hybrid clinched that spot.
A separate cash-for-clunkers incentive of up to 250,000 yen ($2,500) for trading in a vehicle 13 years or older won legislative approval Friday, and will take effect in coming weeks.
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