Tuesday, October 20, 2009

Federal Subsidies For Golf Carts

The Wall Street Journal has a piece on how Obama’s federal electric car stimulus has been used to boost the sales of golf carts:

The federal credit provides from $4,200 to $5,500 for the purchase of an electric vehicle, and when it is combined with similar incentive plans in many states the tax credits can pay for nearly the entire cost of a golf cart. The federal credit is generous enough to pay for half or even two-thirds of the average sticker price of a cart, which is typically in the range of $8,000 to $10,000.

The golf-cart boom has followed an IRS ruling that golf carts qualify for the electric-car credit as long as they are also road worthy. These qualifying golf carts are essentially the same as normal golf carts save for adding some safety features, such as side and rear view mirrors and three-point seat belts.

Furthermore, since there is apparently no limit on how many cars can be bought by an individual with this stimulus, some are stocking up on free carts for resale later. Others have figured out how to turn the electric car loophole into instant cash through a buy and leaseback arrangement.

This is just one more example of the unforeseen consequences that nearly always occur when the government attempts to manipulate the market. Imagine how bad it will be when the feds take over health care—amounting to one sixth of the national economy.

Click here for more information:
Wall Street Journal

Golf Cart Tax Credit in SC

The stimulus package is working for one local golf cart business in South Carolina. Myrtle Beach Golf Carts on Highway 544 said they normally sell about 10 low-speed vehicles, electronic golf carts, during this time of the year. However, since the "golf cart tax" credit was announced, they sold nearly 60 in the last month.

The tax credit applies to all new 2008, 2009 and 2010 LSV’s, Low Speed Vehicles, purchased after January 1, 2009 and before December 31st, 2009. South Carolina is also offering a "piggyback" tax credit of 20 percent of the amount the federal tax credit equals. Traditional golf carts do not apply.

Check with a CPA and an LSV dealer for more details:

3947 Dick Pond Rd
Myrtle Beach, SC 29588
843) 215-4222

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