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Bill Morgan has been in business for a dozen years, but he's never
seen demand like this: Customers are flocking to his showroom to
purchase electric, street-legal golf cars -- golf carts that can be
driven on public roadways as well as golf courses.
"The economy is not good for golf right now," Morgan, the owner of
Action Golf Cars in Ormond Beach, Fla., said. But the golf cars are
"selling so fast, it's amazing."
It's all thanks, he said, to the federal government. The bailout bill
that last year helped keep the U.S. banking system afloat also
contained lesser-known provisions to benefit other industries,
including the electric car business.
Under the Bush administration's Emergency Economic Stabilization Act,
buying a plug-in electric motor vehicle can make a consumer eligible
for a tax credit of at least $2,500 plus additional cash depending on
a car's battery
In April, the Internal Revenue Service confirmed that "neighborhood
electric vehicles" or NEVs -- a common term for electric-powered golf
cars and other low-speed vehicles allowed on public roadways -- bought
in 2009 qualified for the tax credit. (The IRS indicated that
traditional golf carts used mainly on golf courses -- as opposed to
street-legal vehicles -- aren't eligible for the credit. It said in
its April statement that "vehicles manufactured primarily for off-road
use, such as for use on a golf course, do not qualify.")
Morgan said the battery capacity on 12 cars he sells qualifies them
for tax credits of $5,335 each.
In recent months, he and golf car dealers across the country have been
advertising the tax credit as an incentive to get buyers in the door
-- and it's working, they say.
Unlike traditional golf carts, golf cars that are street-legal must
include safety features such as headlights, seat belts, parking brakes
and driver's side mirrors, according to federal mandates. They are
allowed to reach maximum speeds of 25 miles per hour and individual
states decide which roadways the cars may travel on.
Morgan said he's sold 40 cars priced between $6,495 and $10,600 in the
last six weeks -- more than $260,000 in sales, which he said is a
record for his company. Morgan's supplier, South Carolina-based JH
Global Services, Inc., told ABCNews.com that it's seen spikes in sales
too.
"A month of sales now is almost equal to a couple of quarters in the
past," JH Global CEO Jane Zhang said.
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