You can help America Drive Clean and Green

Did your business receive a huge boost in the second half of 2009 due to electric LSV sales? If not, do you wish you would have benefited from the sales generated by consumer and business tax credits as high as $5800? Are you wondering if the Emergency Economic Stabilization Act (EESA) Tax Credit will include Low Speed Vehicles in 2010?

For those not familiar with the EESA Tax Credit, here is a brief description. The EESA bill was passed in 2008 and includes many elements designed to stimulate economic growth as well as helping to improve the environment through “Green” initiatives. Part of the bill includes a tax credit to individuals and businesses who purchase a street legal electric vehicle. The IRS definition of “Street legal vehicles” includes all electric passenger cars & trucks as well as LSV/NEV. The approved bill calls for 250,000 vehicles followed by a four quarter phase out period.

Did the bill stimulate the economy? Most industry dealers and manufacturers who participated in selling qualified LSVs in the second half of 2009 would say, “absolutely!”. While most manufacturers’ LSVs were not approved (IRS Certified) for the tax credit until late July or August, total electric vehicle sales in many of the companies with certified LSVs experienced sales increased two to three times total 2008 vehicle sales! At Star Electric Vehicles, we were blessed to be on the higher side of the growth curve as 12 of our Star brand LSVs qualified for the Tax Credit (most at $5,335). In many cases, retail dealers reported growth rates even more dramatic than those of the IRS certified group of manufacturers. Many of you who participated in selling Qualified LSVs are smiling large as you read this article.

So, did the economy and environment benefit from the inclusion of LSVs in the EESA tax credit? Few can argue the long-term benefits to the environment with the addition of approximately 30,000 new electric vehicles on the road. But, what about the economy? The effect for LSV manufacturers and dealers certainly increased sales and profits. In addition, many new jobs were created to support the incredible demand. This effect was felt downstream to many American businesses including battery companies, seat belt and windshield manufacturers, charger manufacturers, accessory suppliers…the list goes on.

Will LSVs continue to benefit from the EESA Tax Credit in 2010? The answer is “no”…at least for now. It appears that Congress has decided to exclude LSVs from the bill in 2010. Lawmakers caved to some select negative press and the notion that taxpayer dollars were being spent to subsidize “golf carts.” Well, this isn’t about politics, it’s about prosperity.

Instead of treating our industry like ‘Cash for Clunkers,’ lawmakers need to recognize the benefits of incentivizing the electric car market long-term. LSVs deserve a share of the road and we’re all aiming for more of it. If anything, we need big government to not stand in our way. Think of it: every electric car sold in the U.S., means job creation, sales growth and cleaner roads.

It’s time to be proactive, as we face a new year. Let’s stand together to pressure our lawmakers to reinstate this LSV tax credit. As manufacturers, we see this benefit. As dealers, we know you’re reaching more end users than ever before. As customers, why not get a better deal? It’s time to spread the word.

Those of us in the industry know that most of the LSVs that were IRS- certified for the tax credit are in fact used on road and not for golf. Since those of us closest to the industry clearly know how big and beneficial a continuation of the LSV tax credit would be for the economy and environment, it is up to us to spread the word and be vocal in recommending the reinstatement of LSVs to the bill.

So what can you do to make a difference? A well written, personalized letter, written to your local state representative is the single biggest way you can make an impact. Stress the ways your dealership and your suppliers’ businesses have benefited leading to economic growth in your area. Many of us are not good letter writers… so, if you go to starelectricvehicles.com, we have posted a letter that you can use as a starting point for your specific letter. Also, if you need contact information for your senator, check out the following website: http://www.senate.gov/general/contact_information/senators_cfm.cfm. Don’t wait. If we all submit letters now, we have a reasonable chance of seeing a change in this bill. Every letter makes a difference….yours will too!

In the meantime, a 10% tax credit is currently in place for LSVs. This tax credit applies to LSVs and is part of the American Recovery and Reinvestment Act (ARRA). See IRS.gov for more information. In addition, many states have joined in by offering tax credits of their own. Oklahoma will continue to offer a tax credit worth 50% of the retail price of the car on select LSV models. Most states and/or municipalities are offering tax credits for those purchasing LSVs.

You can check out pluginamerica.com for the latest LSV tax credit information by state. Either way, it is a great time to sell Electric Vehicles. So…… Let’s sell some cars!!