Obama Budget to Subsidize $10-K For Each Electric Car Sold

February 17, 2012 - 12:52 PM

(CNSNews.com) - President Barack Obama wants to use more taxpayer funds to encourage the purchase of green vehicles.

The government currently offers up to a $7,500 tax credit for those that purchase natural gas or electric vehicles, but the president’s latest budget proposal wants to increase the amount to $10,000 and allow for consumers to receive the tax incentive at the dealership when they purchase a qualifying vehicle.

While detailing the budget proposal at a White House event, Assistant to the President for Economic Policy Gene Sperling said, “You will see in here a new consumer tax incentive for buying advanced vehicles - technology vehicles. These are technologically neutral, there at the point of sale, they’re worth $10,000 and we don’t pick between natural gas or electric vehicles we’ll let the market determine that and give consumers the incentive to buy these cars.”

It’s not just the federal government offering up tax payer funds for purchasing electric vehicles. Some states have been getting in on offering tax rebates as well. California recently made the move to offer a $1,500 rebate when a qualifying 'green' vehicle is purchased.

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