Nissan North America has welcomed the state of Tennessee's announcement of a US$2,500 rebate toward the first 1,000 purchases of an electric vehicle in the state which will eventually build the automaker's Leaf EV.

Its US sales and marketing chief Brian Carolin said: "The state has been a leader in the promotion of zero-emission mobility and is to be commended for creating the right environment for all electric vehicles like the Leaf to be an option for consumers in Tennessee."

Leaf sales start in December and the rebate will be offered through dealerships in the state and will applied at the time the vehicle is purchased. Tennessee's new rebate combined with an eligible maximum $7,500 federal tax credit could bring the car's price down to $22,780. Other states that are offering financial incentives for the purchase of an electric vehicle include California, Georgia, Hawaii, Oregon, Washington, Maryland, and South Carolina.

Nissan has also been working on a local partnership for EV infrastructure including charging stations that will be located throughout Middle Tennessee at retail centres, parking garages, airports, tourist attractions, major employers and schools.

Earlier this summer, Nissan broke ground on a production facility in Smyrna, Tennessee, that will produce the lithium-ion batteries for the Leaf which eventually will be produced at the company's nearby assembly plant. The automaker received a $1.4bn dollar loan from the US Department of Energy for the construction of the battery plant and the retooling of the assembly plant but will repay it in full with interest.