Secretary LaHood says plug-in vehicle point-of-purchase rebates could replace tax credits in 2012

Back in February, President Obama proposed changing the credit for plug-in vehicles over to a point-of-purchase rebate, a move that would likely speed up the $7,500 payment. Under the proposal, dealers would reduce the sticker price of eligible plug-in vehicles and apply for reimbursement from the government.

Well, according to U.S. Transportation Secretary Ray LaHood, Congress will consider the proposed plug-in point-of-purchase rebate as part of changes to U.S. tax and energy policy for 2012. LaHood, who was touring Nissan's Smyrna, TN facility on Tuesday, told those in attendance:

We're doing a lot of talking about it. When you give people that incentive to buy a battery-powered car, they'll do it. We know these incentives help.

Under current policy, consumers who buy qualifying vehicles like the Nissan Leaf or the Chevrolet Volt receive a $7,500 credit when they file their federal income tax returns. LaHood says that the Obama Administration firmly believes that allowing dealers to handle the incentive as an immediate rebate will entice consumers and, hopefully, convince them to buy plug-in vehicles.