The US federal government’s stimulus plan offers tax credits for buying electric golf carts. The selling price of electric golf carts can be between $8000 and $10,000. Although the credit amount ranges between $4200 and $5500 for buying an electric golf cart, when it is clubbed with other incentive schemes that are offered in various US states, almost half or even two-thirds of the price of the golf cart is taken care of. In fact, some models could be purchased at almost zero cost since the tax benefits cover their selling price in their entirety.
There is no limit to the number of electric golf carts one can buy under this scheme. Therefore, this comes as a good opportunity for people who would like to accumulate these cars and sell them at a higher price at a later date. Golf courses and golfers are reaping the benefits of this latest offering since they can now purchase modern equipment with tax relief from the government. The golf carts purchased under this scheme can be used on golf courses but since they are manufactured for use on the highways, they make the grade easily for the tax benefit. In fact, an Internal Revenue Service (IRS) ruling aids many golf carts to also meet the criteria for the scheme that provides for electric cars. Safety features like three-point seat belts and side and rear mirrors ensure that even golf carts are worthy of being driven on the roads.
This scheme was announced by the US federal government with the intention of supporting more consumers to purchase cars that give higher mileage. While they are not a fairly practical mode for transportation, electric golf carts are covered under this scheme. Since electric golf carts do not require oil to fuel them, concern for the environment is naturally being paid attention to by them.
The tax credit is not really a deduction but is more of a cash reduction in the federal income tax. The credit can be increased depending on the vehicle’s battery capacity. If any person wants to avail of the credit, first and foremost, he needs to buy a golf cart that meets the standards set by the scheme. The buyer should ensure that the golf cart is powered by electricity, meets the safety norms and is worthy of being driven on the roads. In case the safety features are not present, the buyer should get them installed in the vehicle for availing the maximum tax relief.
The buyer should choose an electric golf cart that gives an average mileage of 15-25 miles per hour and costs anything between $7500 and $10,000. Considering that all the other requirements are addressed, such a vehicle would attract a tax benefit of 60 to 70 per cent of the selling price.
Mark