Grants for Hybrid Vehicles
With rising oil prices and increased attention to climate change, hybrid electric vehicles are a sound economic and ecological choice for your next car. A hybrid car powered by both an internal combustion engine and a rechargeable battery can have up to twice the fuel efficiency of a car that runs on gasoline alone. Grants promoting hybrid vehicles are available for manufacturers, local government units, and individual buyers through the federal and state governments.
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Federal and State Grants
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During the 2008 Presidential campaign, then-candidate Barack Obama set a national goal to put one million hybrid cars on the roads by 2015. Following up on that promise in 2009, the White House announced $2.4 billion in grants to accelerate hybrid vehicle development. These grants include $1.5 billion for U.S.-based manufacturers to produce more and longer-lasting batteries, $500 million for manufacturers to produce electric drive components, and $400 million to improve electrical charging infrastructure. Individual grants range in size anywhere from $500,000 to $300 million.
Federal Tax Credits
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The American Recovery and Reinvestment Act of 2009 extends a tax credit between $2,500 and $7,500 to new hybrid purchasers. Vehicles must be purchased new, have four or more wheels, weigh less than 14,000 lbs and have a battery with at least four kilowatt hours that can be charged from an external electric power source.
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Renewable Energy Systems and Energy Efficiency Improvements Grant
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The U.S. Department of Agriculture Office of Rural Development offers grants and guaranteed loans for purchasing renewable energy systems and energy improvements for rural farms and small businesses. Eligible projects include conversion of diesel- and gasoline-powered vehicles to hybrid and electric power or to alternative fuels like biofuels, hydrogen and solar. To qualify, projects must be based in rural areas and employ commercially-available technology. Applicants for this grant must also provide at least 75 percent of the project's costs, and the maximum grant for a given individual or project is capped at $750,000.
Public Transit Grants
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In September 2009, President Obama announced $100 million from the Economic Recovery Act for the Department of Transportation to fund 43 transit agencies to implement environmentally-friendly technologies in public transportation systems. Criteria for the grants include a project's capacity to lower energy consumption and carbon emissions, as well as the ability to provide a viable economic return on investment.
Pollution Prevention Grants Program
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The Pollution Prevention (P2) Grants Program offers education and technical assistance for pollution reduction and prevention strategies, which include purchasing hybrid cars and converting gasoline-powered cars to hybrid and electric power. The program awards grants to states and U.S. territories, as well as qualified state agencies and colleges and universities, and is not offered to local governments, private universities, nonprofit organizations, private businesses or individuals. Matching funds are awarded and managed by the Environmental Protection Agency's regional P2 program offices, and grants are awarded contingent on Congressional funding to the program.
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- Photo Credit red car 3 image by Viachaslau Makouski from Fotolia.com
