Kansas Debates $2500 Hybrid Tax Credit

Feb. 7, 2007: Lawrence Journal-World—House Committee Considers Tax Incentives

kansascorn

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.

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  • Another Republican Who Loves H

    I hope Kansas goes ahead with this. Every state should offer an income-tax credit to people who buy a hybrid.

    I could see restricting the credit to hybrids that (1) get at least 45-50 mpg and (2) are made in America. We don’t want to subsidize hybrids unless they get better mileage than small conventional cars.

    And we shouldn’t subsidize foreign manufacturing – our industrial base is taking a beating, and our governments should make it more affordable for people to buy vehicles that are made here.

  • Rohit

    Its good to subsidise hybrid with low emissions but I think foreign hybrids should also be given subsidies to induce the domestic industry produce more hybrids than gas guzzlers to satisfy domestic demand. Ultimately, industry sees the demand and produces that product. Isn’t it?

  • Jerry

    Mr President please don’t let those bad other companies put us out of business just because they have better more fuel efficient cars they make more money. Let us sell overweight, smog producing vehicles so shareholders get better value not the american people.
    Thank You
    Big oil and Corporate greed

  • domboy

    Then they should also give subsidies to clean diesel vehicles… and I’m not talking about monster trucks.

  • Aaron

    Another Republican Who Loves Hybrids:

    A repulican who loves hybrids? Good job, my thumbs up. Though I am a democrat, I like to see you break away from the “conservatives drive gas-guzzlers” concept.

    Unfortunately, the American hybrids are far and inbetween, and still get pathetic mileage.

  • David

    Giving tax credits to buyers of GM & Ford hybrid trucks and SUV’s that only improve the fuel consumption by 1 to 2 mpg is a joke. And in response to the comments made by Rohit and the 2 restrictions quoted, “I could see restricting the credit to hybrids that (1) get at least 45-50 mpg and (2) are made in America” would eliminate tax credits for hybrids altogether, because there are no hybrid vehicles made by US companies that get 45-50 mpg. Maybe in the year 2093 our great great grandchildren can look forward to that.