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Credit charge
Tax incentives jump-start sales of electric vehicles

John Esche Sr., part owner of Miles Electric Vehicles of Tulsa, stands next to a ZX40 SAD model, with a ZX40 ST in the background. MIKE SIMONS/Tulsa World

By KYLE ARNOLD World Staff Writer
Published: 11/14/2009 2:22 AM
Last Modified: 11/14/2009 4:00 AM

The small, boxy and uncannily quiet fleet of cars at Miles Electric Vehicles of Tulsa have been moving faster and faster off the lot, thanks to a slew of tax incentives that shave thousands from the vehicles' price.

Sales have been strong since spring, with a federal tax credit being increased to a maximum of $10,000 on electric vehicles. An Oklahoma tax credit for electric vehicle purchases can chop off up to $7,500 from a filer's income tax liability.

In all, Miles Electric Tulsa owner John Esche Jr., who runs the store with his father, John Esche Sr., said the rebates often cut the purchase price of the vehicles in half.

"For a while it was mostly institutions like universities and cities buying the cars," the younger Esche said. "Now we have a lot of normal residents buying one."

The Esches' downtown dealership sells a handful of Miles Electric brand Chinese-made plug-ins. The cars can go about 35 mph and travel 60 to 80 miles on a six-hour charge using a standard wall outlet.

After opening in early 2008, the dealership is selling about 10 vehicles a month, Esche said, starting at about $17,900 for sedans and $22,100 for a small pick-up model.

This week Esche received a hatchback model that resembles many traditional hatchbacks on the road today. That vehicle, which isn't ready to sell in the U.S. yet, can go up to 70 mph.

Many think the electric vehicle market is just revving up after the popularity of hybrids during the last decade and the coming release of several plug-ins.

The frenzy has been heightened by billions of dollars in tax incentives and research dollars being offered to private companies and universities to improve the technologies.

According to the Electric Drive Transportation Association, six car manufacturers, including Toyota, Ford and Volvo, plan to offer plug-in vehicles during the next three years. Upstart Fisker Automotive still lists 2009 as the introduction for a $88,000 plug-in that gets 300 miles per charge.

However, plug-in vehicles available today are intended for short commutes, usually under 60 miles a day, as well as nonfreeway driving.

The city of Pawhuska bought a plug-in car from Miles Electric in February 2008, and it has been used by the electricity meter reader, said City Manager Paul McAlexander.

"It's perfect because he doesn't drive around that much — only about 25 miles a day," McAlexander said.

The city has saved money on fuel, he said, but did have a setback when a malfunctioning battery had to be replaced, which was done free of charge.

Oklahoma City-based Green Kars Unlimited recently opened a Tulsa dealership at 2002 W. Skelly Drive where it sells a line of street-legal Zenn brand electric cars. They can travel about 25 mph and get 60 miles on a charge.

Brandon Bittle, a manager at the GKU store, said buyers have primarily been city residents with short commutes.

"Most of the guys that are using these, they drive them four or five miles a day," Bittle said.

"If they need to drive 30 or 40 miles to work, it's not a practical option. But it's perfect for going to the bank, to the video rental store or anything like that."

By GKU's estimates, tax credits will help reduce the price of one vehicle, the Kandi Coco, to just $864 from $10,599.

An Oklahoma Tax Commission spokeswoman said the state's electric car tax credits let taxpayers take 50 percent of the purchase price of a vehicle and apply it toward their tax liability. The credit can be used over three consecutive years.

The Oklahoma Supreme Court is considering a case that would allow the electric vehicle credit to be applied to smaller, nonstreet vehicles such as golf carts.

After the Tax Commission ruled that only street-legal vehicles would qualify, a coalition of dealers sued and a district court in Garfield County ruled that the offroad vehicles qualify for the tax credit. A hearing on the case was held Tuesday in Oklahoma City, but a ruling has not been issued.

Electric car tax credits

Oklahoma Tax Commission

Tax rebate of up to 50 percent of vehicle’s purchase price can be spread over three years. Rebate allows taxpayer to cut tax liability as low as zero.

The state tax credit runs through 2014.

Internal Revenue Service

Federal tax credit up to $7,500 for vehicles up to 10,000 pounds, and $10,000 for vehicles up to 14,000 pounds, depending on vehicle’s battery strength. Minimum rebate is $2,500.

The federal tax credit is good through 2010.

Kyle Arnold 581-8380
kyle.arnold@tulsaworld.com By KYLE ARNOLD World Staff Writer

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Dr. Strangelove, Tulsa (11/14/2009 7:10:04 AM)

Very cool, but the 25 mph top speed would probably get you killed Lewis, haha

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Ron Ballew, Lawton (11/15/2009 6:56:03 AM)

Sounds like you can get a free plug-in electric car with the State and Federal Tax credits. Put a bed in it and every homeless person can have a mobile bed to live in - paid for by the tax credits on their Social Security, VA checks, unemployment insurance, or welfare income checks.

They will need public parking with a public electric socket though. Use all that Federal and State grant money for the homeless to put electric plugs on public parking lots for night use only and the homeless will have a place to park their electric mobile bed at night.

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