Street-Legal Golf Cart Stimulus: Cash for Clubbers?

by Scott Wu | October 20, 2009 at 03:04 pm

38990 views | 35 Recommendations | 15 comments

Golfers in the US are getting a steal thanks to the stimulus plan. Golf carts are getting massive discounts, up to half or two-thirds off, and some cheaper models can be completely free, as long as they're "street legal golf carts".

The intention of the stimulus package was to encourage consumers to buy high-mileage cars. Those who purchase electric vehicles can get $4,200 to $5,500 in federal tax credit. Golf cart, while not a practical mean of transportation, falls under this category, thus eligible for the tax credit from government. In some states, there are similar incentive programs, which provide additional subsidies. When an average golf cart costs about $8,000 to $10,000, it means golfers can get their carts for free, paid from tax money.

The stimulus crack emerged after IRS ruled that golf carts qualify for electric car tax credit as long as they are road worthy. They need to have safety features, like side and rear mirrors and 3-point seat belts.

In South Carolina, sales of these carts have been soaring as dealerships alert customers to Uncle Sam's giveaway. "The Golf Cart Man" in the Villages of Lady Lake, Florida is running a banner online ad that declares: "GET A FREE GOLF CART. Or make $2,000 doing absolutely nothing!"

The IRS set no limit on how many electric cars one can buy, so some people have targeted this loophole by stocking up golf carts using stimulus money, planning to sell them in the future.

While this may very well be an unintentional consequence of any big legislation, it is surprising how the Congress and government agencies have closed this obvious loophole.

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Yuliya Talmazan

at 15:10 on October 20th, 2009

Great find. I can't believe this is happening though. And, who has the time and means to play golf these days? Probably not those in need.

Rhonda J Mangus

at 16:08 on October 20th, 2009

I can't believe it's happening either. Thanks for this, swu.

Scott Wu

at 16:41 on October 20th, 2009

thanks! I'm surprised that the loophole just sits there, and not being addressed.

Barry Baumbaugh (not verified)

at 18:18 on October 20th, 2009

I love this story, especially the Golf Cart Man, now there is a true Entrepreneur. He's killing two birds with one stone, making money and taking it from the idiots that run this country now. I know ultimately I am paying for it, but I admire his spirit, and if the government has less money to use against me that helps.

Prez Obama (not verified)

at 18:28 on October 21st, 2009

Barry, your so stupid. You can't get a tax credit for buying a golf cart, what's wrong with you? It's a scam so you buy an $8,000 golf cart. Read the fine print man.

Jack Herring (not verified)

at 18:55 on October 21st, 2009

Obama, thanks? I live in Oklahoma and have bought two golf carts. One for me and one for my wife. We plan on getting $18,000 total back on our taxes. We are also getting the first time home credit of $8,000. We got one of those 3.5% down home loans cause we can't afford a resonable down payment. Now we are just waiting for the tax credit so we can make the mortgage. If we can't make the mortgage though we can just have all the americans that are renting, trying to save enough money not to mortgage their lives away, pay for it.

Mike Doerr (not verified)

at 15:04 on October 30th, 2009

This is gift from George W. Obama wasn't even in office Dec.2008 Don't blame him for this.

J B SMITH (not verified)

at 16:27 on November 21st, 2009

FOLKS BE CAREFUL...I TALKED TO IRS IF YOU DO NOT OWE THE IRS MONEY YOU WILL ONLY GET A LITTLE OF THE CART MONEY. THIS IS A CREDIT NOT A REFUND TO YOU. BE WARE BEFORE YOU COUNT YOUR MONEY. TALK TO YOU CPA FIRST THEN TO IRS HOT LINE.

Can't Fix Stupid (not verified)

at 21:33 on December 28th, 2009

Dear JB, If one does not understand the difference between a "tax credit" and a "tax refund", then one must be the receipent of one of our greatly sought after "government" education diplomas. "You can't fix stupid" as Ron says.....

Old Lady (not verified)

at 18:35 on October 21st, 2009

SWU, thanks for bring this to my attention. I am an old lady living in a retirement community and have bought seven golf carts online through ebay. This is so great and not a tax scam.

SuperS443 (not verified)

at 07:28 on November 3rd, 2009

I think this is fantastic. My mother lives in a large retirement community and her only income is Social Security. She is not comfortable driving a car any longer and this will allow her to get to the mailbox, recreation center and local stores. GC lanes are provided in The Villages and she can even get to shopping close to her.

KEN SPARKS (not verified)

at 10:01 on November 5th, 2009

When I called golf cart dealer they told me this was only for electric cars - not carts. ????

The Reverend (not verified)

at 11:32 on November 5th, 2009

Well, SuperS, the bad news is that the government is only buying golf carts for the middle class and above. You can only take the credit up to your tax liability for 2009. That means, if mom doesn't owe $5,900 in tax, she won't get a $5,900 tax credit. If she only owes $2,000, for example, she can only take $2,000 credit. That also means, since there is no limit on the number you can buy, a rich person could basically wipe out his/her entire tax liability by opening a "Slightly Used Golf Cart" business; you go out and buy 20 golf carts (assumes a tax liability of $118,000), take the $118,000 tax credit, then sell the golf carts, which are brand new, for close to the purchase price. If you sold the carts for $4,000, you just turned a $118,000 tax bill into a $36,000 business loss! (Consult your tax professional to see if you can deduct this loss) Thank you Harry, Nancy, and Barack!!

Threewood (not verified)

at 14:18 on November 5th, 2009

This makes more sence than cash for clunkers. I voted for Obbamma and have been sick with his socialist agenda. I thought, and he acted like he would be a moderate with hope and change. Lots of lies. BUT at least i am getting back a few of the dollars I pay to uncle SAM with this electric car credit. TO DATE, it is the ONLY good thing our new president has done since he got elected. I hope he don't fool us again with the lies.