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Sunday, October 18, 2009

Ind. Law - Golf cart update; Federal golf cart subsidies

Time for another golf cart update, adding to this long list of earlier ILB golf cart entries.

Recent entries have been about cities and towns considering or adopting ordinances permitting use of golf carts, in accordance with the law passed by the General Assembly earlier this year.

Here are recent stories about two communities whose governing bodies decided NOT to allow golf uses on their streets:

Golf Cart Subsidies. Really. From the opinion section of the Oct. 17th WSJ, this article headed "Cash for Clubbers: Congress's fabulous golf cart stimulus." Some quotes:
The federal credit provides from $4,200 to $5,500 for the purchase of an electric vehicle, and when it is combined with similar incentive plans in many states the tax credits can pay for nearly the entire cost of a golf cart. Even in states that don't have their own tax rebate plans, the federal credit is generous enough to pay for half or even two-thirds of the average sticker price of a cart, which is typically in the range of $8,000 to $10,000. "The purchase of some models could be absolutely free," Roger Gaddis of Ada Electric Cars in Oklahoma said earlier this year. "Is that about the coolest thing you've ever heard?"

The golf-cart boom has followed an IRS ruling that golf carts qualify for the electric-car credit as long as they are also road worthy. These qualifying golf carts are essentially the same as normal golf carts save for adding some safety features, such as side and rearview mirrors and three-point seat belts. They typically can go 15 to 25 miles per hour. * * *

The IRS has also ruled that there's no limit to how many electric cars an individual can buy, so some enterprising profiteers are stocking up on multiple carts while the federal credit lasts, in order to resell them at a profit later. We should note that some states, such as Oklahoma, have caught on to the giveaway and are debating whether to cancel or limit their state credits. But in Congress they're still on the driving range.

Some of you may remember the federal tax break for SUVs - here is an ABC News story from 2003.

Posted by Marcia Oddi on October 18, 2009 10:08 AM
Posted to Indiana Law