Electric vehicle tax credit to become instant rebate?

Electric vehicles like the Chevrolet Volt and Nissan Leaf are brand new, and recent technology naturally costs more than the materials everyone's been using for years. That means that the two vehicles are quite pricey given their size, which is why the government decided to step in and help out with a $7,500 federal tax rebate for all drivers who purchased an EV.

A $7,500 discount on a vehicle sound pretty good no matter what the starting price is, but drivers may be a bit dismayed to know that this is something they can only claim come tax time. Given that the federal filing deadline for the year has already passed, that means a full year before that money is in a driver's pocket.

Now, The Associated Press reports that the Obama administration is hoping to make that tax rebate instant for drivers. The plan has not yet come to fruition, but the government believes that this is a better way of encouraging drivers to buy EVs than promising the money a year down the road.

"We'd like for people to get a $7,500 rebate on the day they buy the Leaf," LaHood said during a tour of a Nissan facility. The Transportation Secretary hoped that an instant rebate would motivate drivers in the same way that the immediate cash of the successful "Cash for Clunkers" program drove people to dealers.

Drivers interested in an electric vehicle or possibly a cheaper hybrid may want to visit New Jersey State Auto Auction when they're ready to buy.