Three ETFs to Consider as Nation Shifts Into Green Vehicle Tax Credits

Feb. 10, 2011 1:24 PM ETLIT, QCLN, PBW4 Comments
Eric Dutram profile picture
Eric Dutram

Despite a push for greener technologies across the board, consumers have been relatively slow to adopt electric cars here in the United States. In fact, only 1.5 million hybrids are currently on the roads in the country out of a total 250 million cars overall, while all-electric cars make up an even smaller amount that is more or less a rounding error when considering the overall car market. A major reason for this slow transition, in addition to the weak economy, has been the prohibitively expensive cost of these new vehicles. The difference between a hybrid version and the traditional one for the same make and model of a car is generally $5,000, if not more, depending on the quality and type of product in question, making it an easy choice for the cost-conscious consumer.

This is the reality for many even though generous tax breaks exist and gasoline prices are once again surging higher thanks to near $100/bbl. oil, two factors that have increased the appeal of switching over to hybrid or even all-electric vehicles. In an effort to boost the adoption of electric and hybrid vehicles and quicken their spread, legislators out of Washington have come up with a way to put money in consumers’ pockets quicker and thus hopefully spur more people to buy cleaner cars.

Current tax incentives for the purchase of all-electric cars and plug-in hybrids include up to $7,500 in tax credits at the federal level and a host of state-based incentives as well, including $5,000 in California, for example. However, the main downside to this system is that it requires individuals to wait to receive this at tax time, an event that can be more than year away depending on the time of year that the car is purchased. As a result, several legislators have proposed a system in which consumers

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Eric Dutram profile picture
I believe in a long term, buy and hold investment philosophy and that ETFs have greatly leveled the playing field for investors and have allowed for the continued democratization of investing. I focus on international stocks as well as dividend paying equities that provide great long term value for investors.

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