The State of Illinois is offering an additional $1,000 rebate to consumers buying hybrid or energy-efficient automobiles. The rebate, dubbed “Green Rewards” was announced by State Treasurer Alexi Giannoulias this weekend. The state has the finances to offer this rebate for about 2000 residents who purchase a new Hybrid vehicle. The rebate is meant to offset some of the premium that consumers have to pay for an Hybrid vehicle over an gasoline-powered car. Research shows that it takes a few years to recoup the additional costs of a hybrid over gasoline. The consumer has to drive over 75,000 miles before breaking even on the cost. That is one of the reasons why the rebates and tax credits are so important.
Illinois has the highest average for gasoline prices in the nation. Besides the Hybrid gasoline electric models, pure electric, CNG (compressed natural gas) and hydrogen fuel cell powered cars are also eligible for the rebate. This rebate is in addition to any federal tax credits offered on certain models. Other States are already offering their own incentives or are sure to follow suit. Colorado has the highest rebate at just over $4,700 on certain models. Some States are offering Hybrid car owners to drive solo in the HOV lane.
The federal tax credits are also very valuable because they reduce your taxes, dollar for dollar. This means that if you get a rebate of $5,000 and your total tax bill for this year is $10,000/-, then you owe the IRS $5,000.
Besides States offering incentives, certain large corporations are also offering incentives to their employees to go green. Bank of America recently offered a rebate of $3000 to some of it’s employees. This coupled with the federal rebate would give a nice break to Hybrid buyers. For employees getting this offer, on the Toyota Prius they would get a total rebate of over $6,000. Google offers $5,000 to it’s employees purchasing an Hybrid or electric vehicle.
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