Senator Stabenow proposes new incentives for electric cars image

U.S. Senator Debbie Stabenow plans to introduce legislation today offering rebates on electric cars.
Stabenow’s proposal would allow purchasers to get the $7,500 as a rebate at the time of purchase — such as at a car dealership.

The Michigan legislator sees potential to generate sales in the alternative-fuel technology, which all U.S. automakers are pursuing as part of their effort to reduce the auto industry’s dependence on petroleum.

The incentive would be a rebate – not a tax refund – Stabenow is telling reporters at the Detroit Free Press.

Stabenow, D-Mich., also plans to propose giving businesses a tax credit for purchasing commercial plug-in hybrid trucks. “These vehicles represent the jobs of the future, and the more that are sold, the more jobs will be created,” she said in a statement.

In a phone conference Monday, she stated that other countries are on the heels of Michigan when it comes to advanced battery and electric vehicle technology.  She says in order to “out-compete, we have to out-innovate.”  One way she proposes to do this, is to give these tax breaks to potential vehicle purchasers.

Last month, the White House endorsed making the $7,500 tax credit for electric vehicles available at the time of purchase. “You won’t have to wait,” Vice President Joe Biden said at an a Indiana battery assembly plant, adding it would be like the cash-for-clunkers program.