Grants for Hybrid Cars

Hybrid cars take advantage of two power sources – electric and gas – to drive the vehicle. They are also called HEV or hybrid electric vehicles or can also be referred to as gas electric hybrid cars. These vehicles are considered environmentally friendly because they emit less pollution and noise. Many people are now realizing the need to use less fossil fuel for their transportation needs but purely electric vehicles are still not ready to be used extensively so hybrid cars are the best alternative. To help in the development of such cars, there are government grants for hybrid cars that car industry players and hybrid car buyers can avail of.

Our dependence on oil has become too much of a burden to our economy and since we spend a lot of it to fuel our cars, it makes sense that reducing our fuel consumption for cars will through the development of hybrid cars will help our economy in the long run. Towards this end, the present administration has earmarked $2.4 billion to car battery manufacturers and car companies to develop and build next generation batteries for hybrid cars. In fact, it was reported that the president has set a goal of having 1 million hybrid vehicles plying our roads by the year 2015.

The funds are available in the form of government grants for hybrid cars which can be used to create small, affordable and reliable hybrid and electric vehicle batteries, including the required infrastructure to allow hybrid and electric car drivers to charge their car batteries from the electricity grid.

About 122 companies have already applied for the funds and several major US car manufacturers and car battery makers have already benefited from these grants. Car manufacturers such as GM, Ford and Chrysler have already received their share. Several colleges and universities too have been awarded smaller grants to help them develop and implement educational programs about electric vehicles for teachers and technicians, as well as graduate and undergraduate students, and the public.

The US Depart of Transportation (DOT) is offering grants to state governments that can be used to buy buses that use clean fuels, fuel cells and hybrid electric systems. The buses shall be used on their public transportation system. Buyers of certain hybrid cars can avail of a New Energy Tax Credit worth $3,400 from the federal government. Those who buy a plug-in hybrid electric car can avail of a tax credit worth between $2,500 and $7,500.

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