Oklahoma EV Tax Credit Update

While the modern day version of the Oklahoma Land Rush ended in 2009, the legal dust related to the electric vehicle tax credits is still settling nearly two years later.  In early March an administrative law judge in the state issued a ruling allowing purchasers of Tomberlin LSVs in 2009 to receive income tax credits.  The Oklahoma Tax Commission is reviewing the decision.  Learn more:  Adaeveningnews.com

NJ Assembly Bills To Promote Electric Vehicles

A package of bills are being proposed in the New Jersey State Assembly to support electric vehicles. They include tax credits and tax deductions for charging infrastructure and the purchase of electric vehicles or plug-in hybrid electric vehicles as well as requirements for shopping center developers and the Turnpike Authority to install electric vehicle charging stations.

The most relevant for LSVs/NEVs are the tax credits for business and the tax deductions for individual tax payers for the purchase of electric vehicles.  According to the office of Assemblyman Daniel Benson, one of the bill sponsors, and my own reading of the bill, LSVs/NEVs would be eligible for these tax credits and deductions.  As currently written, for businesses, the tax credits would be available for three years starting with a $5,000 tax credit in year one, then declining to $3,000 in year two and $2,000 in year three.  For individuals the numbers are the same except it is a gross income tax deduction instead of a tax credit.  Learn more:  Paramuspost.com EV  Tax Credit/Deduction Bill

Update: The bills related to the tax credits and tax deductions for purchasing electric vehicles passed the Assembly on Thursday.  If the bills are passed by the Senate and signed by the governor, the credits and deductions will start in 2012 and run through 2014.  Learn more:  Paramuspost.com

Company News Briefs

Carrus BV buys golf cars and parts – Carrus BV of the Netherlands signed an agreement with a European supplier to purchase 3,300 used golf cars as well as thousands of parts and accessories.  Carrus is a brand-independent supplier of top brand cars, parts and accessories, and serves various European markets, including the leisure sector, golf courses and industry.  Learn more:  Golfcarnews.com

ZAP truck & van qualify for tax credit – ZAP recently announced that their electric truck and van have qualified for a ten percent federal tax credit, up to a maximum of $2,500, under the American Recovery and Reinvestment Act.  Vehicles purchased through 2011 will be eligible for the tax credit.  Learn more:  Autorevolution.com

Kawasaki announces new consumer credit program – This month, Kawasaki, in partnership with GE Money, is rolling out a new consumer credit program for purchasing Kawasaki’s motorcycles, ATVs, utility vehicles and watercrafts.  Learn more:  Marketwatch.com

RMD Technologies selects seat supplier for electric vehicles – RMD Technologies of San Marcos, CA has chosen PRP Seats of Murrieta, CA to provide seats for their small electric vehicles.  RMDT’s core business is providing electronics recycling services to businesses, state and federal agencies.  However in 2007 they decided to branch out into developing an  alternative energy vehicle using a large percentage of materials recycled from electronic waste.  Their electric utility vehicle is expected to hit the market at the end of 2010 or beginning of 2011. Learn more:  Cleanenergynews.blogspot.com

Company News

Global Electric Motorcars – Has produced a commercial to promote their vehicles and the federal tax incentives that are currently available for them.  Learn more & see the commercial:  Zachmarion.com

Valence Technology - Has won a $3.1 million contract to supply the Tanfield Group’s Smith Electric Vehicles with lithium iron magnesium phosphate batteries for their electric trucks.  The company also supplies batteries for Tanfield’s joint venture in the US, Smith Electric Vehicles US Corporation, that makes similar trucks.  Learn more:  Streetinsider.com

CT&T – Bavarian Luxury Auto Sales LLC has become the first dealer to carry their vehicles in South Carolina, the e-Zone LSV.  Learn more:  Poastandcourier.com Comment: – What is interesting is that while CT&T has generated a lot of press I have not come across too much hard evidence related to actual vehicle sales.  This may be  a start. – Marc Cesare

More Bad Boy Buggy News

Bad Boy Enterprises just announced that three of their vehicles, the Classic, XT and Stretch, are now qualified by the IRS as street-legal LSVs.  Each vehicle is eligible for a federal tax credit of $5,590.  Management reports that tax credit driven sales have, in part, caused them to increase their projected annual sales from $17 million to $20 million.  In addition, they report a 1,000 orders for their new XT vehicle and a positive response from their five-store market test with Bass Pro shops.  The retailer wants to roll-out the program with an additional 15 stores in the next three months.  Bad Boy is also talking with retailer Cabela’s about selling their vehicles.  Learn more:  Natchezdemocrat.com

Club Car Announces First Low-Speed Passenger Vehicle

From Club Car’s Press Release

Club Car announced that its first street-legal low-speed passenger vehicle will begin shipping this week, giving businesses and consumers time to take advantage of federal tax credits that amount to nearly 50 percent of the suggested retail price for the new Villager 2+2.
The zero-emission LSV from Augusta, Ga.-based Club Car carries up to four passengers and builds on the Villager’s history of providing dependable, energy-efficient transportation for thousands of businesses and consumers worldwide.
Customers have until the end of the year to take advantage of a federal tax credit – based on the Energy Improvement and Extension Act of 2008. The credit is equal to the sum of the base credit of $2,500 plus $417 for each kilowat hour of battery capacity in excess of four kilowat hours. For those who qualify, the credit would amount to $4,168, almost half the base price of the $8,876 Villager 2+2. Some states have additional tax credits that can lower the purchase price further. The credit amount is scheduled to reduce to a minimum of 10 percent of the MSRP at the end of 2009.
LSVs are the fastest-growing segment in what is known as the small task-oriented vehicle (STOV) market, increasing by nearly 50 percent in the last year, according to International Market Solutions, a NY-based research firm.
According to a study conducted by Green Car Institute, a nonprofit California research corporation, consumers and businesses are using LSVs instead of cars or trucks with gasoline internal combustion engines for daily short-distance trips and for cargo transport. In the same survey, LSV owners said they purchased the nimble street-legal vehicles because they offer an environmentally friendly mode of travel, save on gasoline and fit their lifestyle and business needs for economical transportation.
The four-wheeled motor vehicles weigh less than 3,000 pounds and have a top speed between 20 and 25 mph. Currently LSVs are allowed in 47 states and the District of Columbia on many roads where the posted speed limit is 35 mph or slower.
In accordance with LSV requirements, Club Car’s Villager 2+2 features headlights, taillights, brake lights, turn signals and a horn. In addition, a wrap-around impact-resistant bumper system and an onboard charger are standard. Colors include white (standard), beige and black (optional) and diamond white pearl, titanium silver, and desert sand (premium). Option packages are available.
Military bases, college campuses, residential neighborhoods and urban environments with congested driving and parking conditions are among the target markets for the new LSV, according to Robert McElreath, Club Car’s vice president of global marketing, who notes the vehicles’ wide-ranging benefits.
“Even when the purchase of an LSV does  not  replace a personal or commercial vehicle, it will replace many of the miles a vehicle with an internal combustion engine is used for, and that’s going to translate to fuel and energy savings as well as convenience,” said McElreath.
Club Car vehicles are sold through authorized dealers. To locate a dealer, go to clubcar.com and click on Dealer Locator.
Club Car, which is the world’s largest producer of four-wheel, small task-oriented electric vehicles, was one of the first manufacturers in the LSV market, partnering with General Motors in 2003 as part of a test program. In 2008 Club Car introduced LSV versions of its Carryall 2 and Carryall 6 utility vehicles aimed at commercial and government markets. The latest Villager model has been restyled to appeal to commercial and consumer users with a priority on comfort, convenience and efficiency.
Club Car’s more than 85 base models of small task-oriented vehicles serve thousands of commercial and consumer applications worldwide through more than 400 commercial and industrial utility vehicle dealers.

More about Club Car

Oklahoma LSV Tax Credit Update

Yesterday a county judge in Oklahoma ruled in favor of vehicle purchasers, declaring that they could receive the state tax credit for the LSVs that they purchased.  The lawsuit was brought by Ada Electric Cars and H20 Sports Unlimited and other dealers joined as well including GKU Electric Vehicles LLC, Heartland Outdoors LLC, Pat’s Archery Inc., and Xtreme Cycle and ATV LLC.

The judge’s order states low-speed vehicles sold by manufacturers Tomberlin, Ruff & Tuff, Stealth, Fairplay and Bad Boy Buggie qualify for a state tax credit.  The order also includes, “any other low speed vehicles similarly equipped as those described above qualify for … ‘ the state tax credit. Specific models noted in the order include Tomberlin E-Merge E-2, Tomberlin E-Merge E-4, Tomberlin Anvil, Tomberlin E-Merge Classic, Ruff & Tuff NEV2, Ruff & Tuff NEV4, Ruff & Tuff Cruiser EV2, Ruff & Tuff Cruiser LX2, Ruff & Tuff Cruiser LX4, Ruff & Tuff Hunter 4×4, Stealth Patriot LSV, Stealth Patriot LSV 4 X 4, Fairplay EVE, Fairplay Goat and Bad Boy Buggie XT LSV.

The Oklahoma State Tax Commission responded to the announcement by stating that it would appeal the ruling.  The commission stated that the tax credits could cost the state more $40 million.  If this is true, at the high end an average tax credit of $8,000 per vehicle translates into 5,000 vehicles sold in the state and at the low end an average tax credit $4,000 per vehicle translates into 10,000 vehicles sold in the state. In either case the figures represent an enormous boost to the LSV market. – Marc Cesare

Learn more:  Enidnews.com Stilwater-newspress.com

Enidnews.com

Wheego Announces LSV To Full Speed Vehicle Trade Up Program

Last week Wheego Electric Cars announced their trade-up program that will allow customers to trade up their Wheego Whip LSV for Wheego’s Full Speed Vehicle (FSV) that is expected to launch in 2010.

Anytime within 24 months of their purchase of the Wheego LSV, a customer may trade up their Wheego LSV for a full speed Wheego (when available) and receive a trade-up credit of 50% of the original purchase price of their LSV toward the purchase of a full speed Wheego.

Any Federal or State tax credits that the customer received on their purchase of the LSV or on a new full speed car are theirs to keep and are not deducted from the trade-up value.

If the company can meet their price points for the FSV, the cost of the vehicle becomes quite attractive with the currently available federal tax credits.  The company provided the following trade up example.

Example (for illustration only; prices may vary):
Customer purchase price of Wheego LSV: $22,000
Fed Tax Credit: -$7,500
Net customer price for LSV: $14,500

Customer sample purchase price of Full Speed: $30,000
Wheego LSV Trade-up allowance: -$11,000
Fed Tax Credit: -$ 7,500
Net customer price for Full Speed Wheego: $11,500

As you can see in the example, a customer would end up spending more for the LSV than the FSV. The total cost to obtain the FSV in this example is $26,000, which is quite attractive for a full speed electric vehicle, and you get the use of an LSV for awhile. - Marc Cesare Learn more:  PRweb.com

Federal Tax Credit Appears To Be Significantly Boosting LSV Sales

Based on stories from around the country, the federal tax credit for new plug-in electric vehicles purchased during 2009 is providing a significant boost to LSV sales. The tax credit is included as part of the Emergency Economic Stabilization Act (EESA) and is credit of $2,500 to $7,500 for a four wheeled vehicle that draws propulsion using a rechargeable battery with at least four kilowatt hours of capacity. The base credit is $2,500 and increases depending on the size of the battery pack.  An additional $417 is added for each kilowatt hour above four kilowatts hours.  For many LSV this equates to a tax credit of roughly $4,000 to $6,000 depending on the brand of LSV and the battery pack option chosen.

A Tomberlin dealer in Oklahoma has reported a “dramatic” increase in sales, Bad Boy Buggies is hoping to launch their street legal vehicle shortly to take advantage of the tax credit fueled demand and in a recent story out of South Carolina a dealer reported a sales jump from 10 to 60 vehicles per month because of the tax credit.  South Carolina adds a state tax credit equal to 20% of the federal tax credit and Oklahoma adds a 50% tax credit for electric vehicles.  In addition, the major LSV manufacturers are all prominently touting the tax credit on their websites, often with the specific tax credit available for each model.  Learn more:  SCNow.com

Oklahoma Tax Commission Withdraws Tax Credit Ruling

The Oklahoma Tax Commission has withdrawn the ruling of September 17th that would have prohibited buyers of certain electric powered vehicles from qualifying for a substantial tax credit. Roger Gaddis, owner of Ada Electric Cars, sued the commission last week over the ruling. The reason for reversal, according to the tax commission, is that the ruling was meant to clarify the original ruling, but instead created more confusion. This is what spokesperson Paula Ross had told me about a week ago. Going forward tax credit qualifications will be based on the original rulings.  Learn more:  Edmondsun.com