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Thursday, November 19, 2009
Law - More on: Federal golf cart subsidies
Updating this Oct. 18, 2009 ILB entry, which ended with quotes from a WSJ story about federal and state tax credts for golf carts, today's Cincinnati Enquirer has a long story by Mike Boyer headed "Tax credit spurs interest in electric carts." Some quotes:
FAIRFIELD – Gary Metcalf is used to stares as he tools around his neighborhood on his gasoline-powered, four-seater golf cart.“Everybody wants to stop and talk to you, and it’s a good way to save on gas,” says Metcalf, owner of Gary’s Gun Shop in Fairfield.
Metcalf is one of a growing number turning to gas- and electric-powered golf carts and other low-speed vehicles for personal transportation. Golf carts have been used for personal transit in senior communities and other relatively small, closed-in areas for decades. But rising fuel costs, increasing attention on reducing pollution and federal income tax credits on some low-speed electric vehicles are putting a new charge into the market. * * *
Year-old federal income tax rules also offer credits of $5,000 or more for the purchase or lease of certain plug-in electric vehicles that go no faster than 25 miles per hour. Models from about 10 low-speed electric vehicle makers have been qualified for the tax credits by the IRS. Golf carts don’t qualify for the credit. Eligible vehicles, which can run for up to operate 30-40 miles between charges, are limited to streets posted at no more than 35 mile per hour and can cost $12,000 or more depending how they’re equipped.
If authorized by local ordinances, state motor vehicle laws also allow traditional golf carts, when inspected and equipped with proper vehicle safety equipment, to be licensed and registered for use on roads posted at 35 miles per hour or less.
FAIRFIELD – Gary Metcalf is used to stares as he tools around his neighborhood on his gasoline-powered, four-seater golf cart.
“Everybody wants to stop and talk to you, and it’s a good way to save on gas,” says Metcalf, owner of Gary’s Gun Shop in Fairfield.
Metcalf is one of a growing number turning to gas- and electric-powered golf carts and other low-speed vehicles for personal transportation. Golf carts have been used for personal transit in senior communities and other relatively small, closed-in areas for decades. But rising fuel costs, increasing attention on reducing pollution and federal income tax credits on some low-speed electric vehicles are putting a new charge into the market.
“It’s a growing phenomenon,” says Roy Kasler, president of Mid Ohio Golf Car, a Yamaha cart dealer outside Columbus who also markets across most of southern Ohio, including Cincinnati.
Golf carts for personal transportation are still a small percentage of the thousands of golf carts that Kasler sells and rents annually. But “people are finding it’s fun and convenient,” he says.
Kasler and Metcalf say there’s a social aspect to using a golf cart that’s not there driving a faster-moving car.
“Nobody knows their neighbors any more,” Metcalf says. “When you’re in a golf cart you can stop and talk to people.”
Kasler says some golf cart enthusiasts hold community parades and rallies.
Year-old federal income tax rules also offer credits of $5,000 or more for the purchase or lease of certain plug-in electric vehicles that go no faster than 25 miles per hour. Models from about 10 low-speed electric vehicle makers have been qualified for the tax credits by the IRS. Golf carts don’t qualify for the credit. Eligible vehicles, which can run for up to operate 30-40 miles between charges, are limited to streets posted at no more than 35 mile per hour and can cost $12,000 or more depending how they’re equipped.
If authorized by local ordinances, state motor vehicle laws also allow traditional golf carts, when inspected and equipped with proper vehicle safety equipment, to be licensed and registered for use on roads posted at 35 miles per hour or less.
(2 of 3)That’s what Metcalf and a number of other motorists in Ohio, Kentucky and Indiana are doing. Just how many is unclear. Because the golf carts are registered as regular motor vehicles, vehicle registration agencies don’t break them out separately. * * *
Mike Lawrence, owner of Lawrence Motorsports in Lawrenceburg, estimates he’s outfitted a couple dozen golf carts over the past year and a half for street use. Retrofitting costs about $1,000 on top of the cart and includes adding a windshield, front and rear lights, brake lights and seat belts. The variations in local rules create a minefield for distributors, Kasler says. His company advises customers to find out what their municipality requires before buying a golf cart.
Gary Eichler Jr. of Gary Eichler Golf Center in Hamilton, says his company has equipped about two dozen golf carts for street use. He says it’s cheaper to buy and equip a used golf cart for the street than to buy a new electric low-speed vehicle even after the federal income tax credit.
A new gas or electric golf cart costs about $5,000. A used model costs about half that and can be equipped for street use for less than $1,000, he says. A gas-powered cart, with a 4-cylinder engine and a 7-gallon tank can go about 200 miles between fill-ups. Eichler says they’re cheaper to operate than electric models.
The City of Rising Sun along the Ohio River was one of the first communities in Southeast Indiana to permit golf carts on city streets. Mayor Bill Marksberry says about 20 golf carts have been permitted since Rising Sun enacted its ordinance a year ago. Rising Sun police have a unit equipped with emergency flashers.
“If every community in the United States did this, it would help reduce our consumption of oil,” Marksberry says. The larger of two federal income tax credits for qualified plug-in electric-powered vehicles, which look more like small cars than golf carts, is set to expire at year’s end. The bad news for fans of these vehicles: They’re almost impossible to find now.
Posted by Marcia Oddi on November 19, 2009 01:44 PM
Posted to General Law Related