Future hybrids buyers in the state of IL may get $1000 rebate!

http://www.chicagotribune.com/news/l...ck=1&cset=true

 

Copy and Paste of Tribune Article


State offering rebates on hybrid vehicles

By Ofelia Casillas
Tribune staff reporter
Published July 14, 2007, 11:58 AM CDT
Illinois State Treasurer Alexi Giannoulias has announced a new $2 million effort to combat rising gas prices across the state by offering $1,000 rebates to consumers who purchase hybrid or other energy-efficient vehicles.

The plan, expected to be formally unveiled on Sunday, calls for the state to partner with banks to generate funds for the program, officials said.

In a written statement, Giannoulias said his "Green Rewards" program would entice residents to buy "fuel-efficient, clean-burning vehicles" while helping them "recoup their investment faster while they save money at the pump."

Giannoulias plans to unveil details of the rebate program during a statewide tour in his personal hybrid vehicle.

To fund the program, officials said, state funds will be deposited at local banks and credit unions at a below-market interest rate. The money that those institutions save in interest is passed to consumers in the form of $1,000 rebates at the time of purchase, they said.

To get a rebate, buyers must secure a car loan from a participating bank or credit union for a new hybrid vehicle or an eligible electric or fuel cell vehicle. Purchasers can receive one rebate per vehicle, allowing municipalities or other entities to receive additional cash back when acquiring fuel-efficient fleets.

Current hybrid cars can get up to 60 miles to the gallon on the highway and produce up to 80 percent less harmful pollutants and greenhouse gases than comparable gasoline cars, officials with the Treasurer's Office said. But the vehicles cost $1,200 to $10,000 more than their fossil fuel counterparts.

According to officials, studies show that the Ford Escape, Honda Civic, Toyota Camry and Toyota Prius all recover their price premium through fuel efficiencies after the first five years or 75,000 miles of ownership. "For every dollar that is spent on the program, drivers will save $5 on fuel over the life of their vehicle,"

Giannoulias said in a written statement. "That's a deal government should make every day of the week."

Officials said Green Rewards is the first incentive program to encourage hybrid purchases in Illinois. The program, they said, offers the largest state rebate for hybrids in the nation.

Green Rewards is one of the State Treasurer's Cultivate Illinois Agricultural and Environmental programs. For more information, contact (312) 814-1901, (217) 557-6436 or cultivateillinois@treasurer.state.il.us.

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ocasillas@tribune.com

 

It's too bad that more states aren't doing this--especially with the Prius federal tax credit cut in half and the HCH set to follow at some point. Props to IL for stepping up!

K (got $2650 (!) from the state of CO for his HCHII)

 

So the state govt. will be gouging you a little less -- for awhile. Then, when gasoline tax revenues drop way off as a result of all those hybrids on the road, they'll either raise that tax or raise the income tax rate. Probably both.

Also, according to the article you have to take out a loan to get the rebate. So if you lease, pay cash up front or get the loan from AAA or any other "non-participating" institution, you're screwed.

While I was glad to get the federal tax credits for our HCHs, I was equally glad not to get a state tax rebate -- because we have no state income tax!

 

I live in Chicago and would like to know when this happens. I might be inclined to get the HCHII again if they don't 1/2 the tax credit.

 

That's not a hard system to game, if you would rather pay cash than get a car loan to buy a hybrid. Get a car loan, take the $1000 credit, then pay the loan off early. As long as you make sure you don't have any prepayment penalties, then it would be a good deal- you would lose part of the $1000 because of loan fees and a bit of interest, but my guess is that you'd still be able to clear 75-80% or so, perhaps, which would be worth it to most people.

I'm not saying you SHOULD necessarily do this, just that it would be possible.

 

P.S. I found a link that might be handy. To answer exbauer's question, this isn't a proposed program, it's an actual, existing program, which went into effect July 15th. Here's the Treasurer's website with more information:

http://www.treasurer.il.gov/cultivat...enrewards.aspx

 

Congrats Illini - you will now be able to fund another month of tolls and/or parking when in the Chicagoland area

 

yeah, i did some research and traded in my 2007 si sedan for a hch ii again. but, this time i got navi. the si was my first manual car and just hated driving in the city with it. it wasn't as fun as i thought it would be.

 

oh, you have to have the loan for at least 60 days from what i was told. i went with a credit union and had the lowest rate anyway.