Golf Cart Tax Credit Stokes Controversy

(MYFOX NATIONAL) - Sales of golf clubs have been down in this depressed economy . But golf carts are seeing a boom.

The reason why is because under the government stimulus plan, tax credits are being given for electric cars. And the golf carts we're talking about aren't the ones that you see on the putting green -- they're ones that you can take out on the street.

The Wall Street Journal reports that more people are buying "neighborhood electric vehicles," or NEVs, in an effort to be more green and save money. It writes that some in the industry estimate that there are 10,000 NEVs on the streets. The vehicles typically cost between $8,000 and $20,000 and can travel 30 to 40 miles on a charge. Unlike the carts that you see at golf courses, these vehicles must be outfitted with headlights, seat belts, parking brakes and driver's side mirrors in order to hit the streets.

Many people ride their golf carts for short distances -- to buy groceries and visit friends. But the other advantage for those who purchase the vehicles is that they are eligible for a tax credit of at least $2,500 and even more depending on the car's battery, according to ABC News . And there isn't a limit as to how many golf cart tax credits someone can claim.

Some argue that giving NEVs a tax credit is a waste of money. An opinion piece in the Wall Street Journal reads , "We thought cash for clunkers was the ultimate waste of taxpayer money, but as usual we were too optimistic. Thanks to the federal tax credit to buy high-mileage cars that was part of President Obama's stimulus plan, Uncle Sam is now paying Americans to buy that great necessity of modern life, the golf cart."

BloggingStocks wrote , "Alas, this is the problem with all these social engineering-motivated tax credits: They waste a ton of time (receipt collecting, reading the law, audits, etc.), create nothing, and inevitably lead to a number of opportunities for loophole-minded tax dodgers to dump the tax burden onto the rest of us."

But Tony Colangelo who owns a golf cart dealership in South Carolina told Fox Business' John Stossel that the tax break is good for consumers. "I never, in my entire life, got anything back from the government and I've always paid taxes. Why shouldn't the people who worked hard for their money get something back?"

Readers agreed that golf carts are a step in the right direction. "Economic stimulus and reduction of foreign oil. I'm not seeing a problem..." wrote wagenergc on ABC News . Added hosfac, "God forbid that we lighten our dependence on foreign oil with American made vehicles that don't contribute to the carbon content of our atmosphere, huh? You people are unreal..."