Tax Credits for Your Hybrid Car
Since 2005, the IRS (Internal Revenue Service) has started giving tax credits to individuals who are embracing “green” technologies. Earlier there was a clean fuel burning deduction in operation under which only gas-electric hybrid automobiles enjoyed tax credits, but in 2005 it was replaced by the Energy Policy Act.
According to this act a tax credit is subtracted directly from the total amount of federal tax owed by the taxpayer, thus reducing or even eliminating the taxpayer’s tax obligation. In case you are confused as to whether your vehicle qualifies for the tax credit, then you can also seek additional information from the car manufacturer or your local dealer.
If you have purchased, your hybrid vehicle after January 1, 2006, then you as a taxpayer, qualify for this tax credit. This tax credit is also applicable if you have placed your car in service after this date.
A hybrid vehicle is defined to have drive trains powered by both an internal combustion engine and a rechargeable battery. Also, most of the current hybrid vehicles qualify for the tax credit.
It’s important to note here that the credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.
So let’s see as to how much tax credit you can receive on your hybrid vehicles. The information given below is current as of January 2008:
1. Make: Chevrolet
Model: Malibu Hybrid, Credit Amount $1,300
Model: Tahoe Hybrid 2WD and 4WD, Credit Amount $2,200
2. Make: Ford
Model: Escape Hybrid 2WD, Credit Amount $3,000
Model: Escape Hybrid 4WD, Credit Amount $2,200
3. Make: GMC
Model: Yukon Hybrid, Credit Amount $2,200
4. Make: Honda
Model: Civic CVT, Credit Amount $0 to $2,100 depending upon the purchase date.
5. Make: Mazda
Model: Tribute 2WD, Credit Amount $3,000
Model: Tribute 4WD, Credit Amount $2,200
6. Make: Mercury
Model: Mariner Hybrid 2WD, Credit Amount $3,000
Model: Mariner Hybrid 4WD, Credit Amount $2,200
7. Make: Nissan
Model: Altima Hybrid, Credit Amount $2,350
8. Make: Saturn
Model: Aura hybrid, Credit Amount $3,000
Model: Vue Green Line, Credit Amount $1,550
9. Make: Toyota
Model: Camry Hybrid, Credit Amount $0 to $2,600 depending upon purchase date
Model: Prius, Credit Amount $0 to $3,150 depending upon purchase date
Model: Highlander Hybrid 4WD, Credit Amount $0 to $2,600 depending upon purchase date
10. Make: Lexus
Model: RX 400h 2WD and 4WD, Credit Amount $0 to $2,200 depending upon purchase date
Model: LS 600h L Hybrid, Credit Amount $0 to $1,800 depending upon purchase date