Rebate for Electric Vehicle Purchases

NASHVILLE, Tenn. - The state of Tennessee plans to participate in a rebate program for those interested in buying electric cars.

Governor Phil Bredesen announced the state of Tennessee would participate in the national Electric Vehicle Project. The project will offer a $2,500 rebate on the first 1,000 electric vehicles purchased in Tennessee. The state rebate will complement a federal tax credit of up to $7,500 for the purchase of electric vehicles.

The rebate program will be administered by the Department of Revenue, which will offer the rebate to consumers through Nissans network of automotive dealerships in Tennessee. The rebate will be applied at the time the vehicle is purchased. The rebate money can only be used for approved energy-related activities.

Tennessee is one of six states selected to participate in the EV project, which is funded through a $100 million grant from the U.S. Department of Energy.

The $2.5 million in state funding for the rebate program was approved in last year's state budget and draws from the petroleum violation escrow account, which are funds collected by the federal government from oil companies.

In May of this year, Bredesen joined Nissan officials in breaking ground for the 1.3 million square foot facility that will produce the lithium-ion batteries that will power the Nissan LEAF, an all-electric vehicle that produces no emissions. The battery facility is expected to create 1,300 additional jobs in Smyrna. The Nissan LEAF will also be manufactured in Smyrna and will begin rolling off the production lines in late 2012.