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Green Car Incentives Are Just Starting To Roll

If it's not clear to you yet, it should be. The green wave of incentives, tax breaks, and government grants is just starting to wash over auto companies and customers.

T

Tesla
Tesla

he latest comes from the state of California, which is waiving $29 million in sales taxes on equipment needed for the expansion of Tesla Production in that state.

That sweetener is just part of the green wave of green flowing toward cleaner and greener cars.

The Department of Energy is in the midst of doling out billions to automakers as diverse as Ford and Fisker as well as to parts suppliers including Tenneco.

The goal: kick start production of green vehicles and technology.

The Carbon Challenge - A CNBC Special Report - See Complete Coverage
The Carbon Challenge - A CNBC Special Report - See Complete Coverage

36 States around the country are offering rebates on hybrids and electric cars.

The $42,038 rebate on $110,000 Tesla will get a lot of attention (and chuckles), but that's one extreme and unusual example. The norm is in other states where buyers are getting a couple grand back.

Don't kid yourself. This is just starting. We are at the beginning of a major clean auto push that will last many years. If you thought interest in developing alternative powered cars and trucks would die out with gas prices moderating over the last 8 months, think again.

Critics will say it is ridiculous to give the public and automakers incentives to go green. In their opinion, the money is better spent in other ways, in other industries. When I hear this, I scratch my head. Mainly because few of these critics have clearly explained to me why it is a bad idea to foster development of next generation vehicles.

Like it or not, the green machines are coming and elected leaders are driving the change with incentives and tax dollars.

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