Despite budget woes, CA offering $5,000 rebates to electric car buyers

California is a state struggling to make ends meet boasts billions in public debt so theoretically it would be looking to reverse that trend or find another way to make money. Instead, the golden state is offering $5,000 rebates to electric car buyers, at least until $4.1 million in funding runs out. California’s dedication to going green is admirable as long as it can make the economics work too, and that might be possible given the current selection available.

The bill language excludes hybrid cars and focuses on electric cars that can be plugged in and recharged. Tesla has one car available that meets those requirements though that costs over $100,000 as a base price and there are other less-known models out there. The Nissan LEAF and Chevy Volt may also qualify but the are not yet out in the market.

According to the Clean Vehicle Rebate Project, “this project benefits the citizens of California by providing immediate air pollution emission reductions and stimulating development and deployment of the next generation of zero-emission and plug-in hybrid light-duty and commercial vehicles.”

Widespread adoption of electric cars probably would have a positive impact on air quality, at least if the electricity is produced efficiently and conscientiously. But vehicles right now that would make the biggest difference are outside the price range of most of the middle class. Golf carts and motor cycles are candidates for the bill as well but the segments of people that use those vehicles are much smaller than more traditional form factors.

The goal with this bill may be more in line with creating buzz and generating interest in electric cars because of the limited scope of its availability, and the concrete cap on funding. The cap also generates a sense of urgency so that those waffling between buying or not may take the plunge.