Kansas Debates $2500 Hybrid Tax Credit
Feb. 7, 2007: Lawrence Journal-World—House Committee Considers Tax Incentives
Available hybrids don’t make use of corn-fed ethanol just yet, or Kansas lawmakers might look on the bill more favorably.
Summary: Not surprisingly, it’s hard to please everyone. Those who would have to administer the law are a tad gloomy:
"But the Kansas Department of Revenue said the proposed state bill was expensive and could produce some disgruntled taxpayers.
"Under House Bill 2222, the tax credit would be capped at $2.5 million, which means 1,000 people would be eligible. There were approximately 1,500 hybrid vehicles sold in Kansas in 2005, the agency said."
Expense isn’t the only thing stopping Kansas from paying hybrid buyers. Should the credit be limited to vehicles that are made in the USA? One lawmaker pointed out that some hybrid pickups and SUVs represent only a small improvement in gas mileage. What about reserving it for hybrids with significantly better fuel efficiency than their non-hybrid counterparts?
One thing is certain: it will be interesting to watch as states begin to enact their own policies toward hybrids as federal incentives fade.