China will be giving out cash rebates for people purchasing new fuel efficient automobiles or buses, according to Reuters. Purchases of small hybrids could get a $7,308 rebate. Purchases of fuel cell powered commercial buses could get an $87,000 rebate.
The program was announced via state radio, and is light on details. There is no word on when the program will begin, or how it’ll be executed. The rebates intend to spur development of hybrids and fuel cell cars as well as increase Chinese manufacturing. There are no details on whether the autos need to be Chinese made to qualify for a rebate.
These rebates, if they actually materialise, are more generous than anything in the United States. If an American purchases a hybrid, they are entitled to a $3,400 tax credit until a carmaker makes 60,000 of that model. Then the credit is halved. Here’s a site that lists all the available credits (via GreenCarAdvisor.)
The stimulus package doesn’t appear to help purchases of hybrids, though it does have some provisions for electric cars. Plug-in cars that can go 40 miles are eligible for a $2,500 to $7,500 credit.
GreeCarAdvisor: The battery pack for an eligible vehicles has to have a capacity of at least at least four kilowatt hours, and the credit increase by $417 for each additional kilowatt hour of capacity after that, topping out at $7,500 for vehicles of 10,000 pounds or less (most cars and light trucks).
For vehicles weighing from 10,001 pounds to 14,000 pounds, the maximum credit is $10,000; it jumps for $12,500 for 14,001- to 26,000-pound vehicles; and tops at $15,000 for vehicles in excess of 26,000 pounds.
While that seems awesome, the truth is there aren’t many cars that fit this description. In reality, the biggest part of the stimulus package that helps change driving habits is the $26 billion laid out to eliminate pot holes.
Business Insider Emails & Alerts
Site highlights each day to your inbox.