All I want for christmas is a hybrid car and a tax break.
When I was writing my short article about end of year tax savings, I realized that I needed to learn more about the hybrid tax break.
There are basically a few things that you need to know. The toyota prius is out of question the most popular hybrid car. And being so, you will NOT get a tax credit for buying one. Here is the IRS publication that summarizes the tax credits that are still available.
The rule basically is that you must place in service the vehicle on or before 12/31/07 to get the tax credit for this year. This means that you must drive the car off the lot. It also cannot be a used vehicle.
The other important thing to remember is that there is a credit phase out period. The phase out begins when 60K vehicles of that type is sold. You can still get the full credit for the quarter of the year that sold 60K vehicles. The next 2 quarters, you get 50% of the credit. After that you only get 25% of the credit for the next 2 quarters. Then after that it is 0% or no credit.
Some cars that are available for tax credit:
2008 models
Ford Escape Hybrid 2WD $3,000
Ford Escape Hybrid 4WD$2,220
Mercury Mariner Hybrid 2 WD $3,000
Mercury Mariner Hybrid 4WD $2,200
Chevy malibu hybrid = 1300
Honda CVT 2100
Mazda tribute 2wd = 3000
Mazda tribute 4wd = 2000
Nissan Altima hybrid = 2350
Saturn Aura hybrid = 1300
2007 models
Chevrolet Silverado 2WD Hybrid Pickup Truck $ 250
Chevrolet Silverado 4WD Hybrid Pickup Truck $ 650
Ford Escape Hybrid 2WD $2,600
Ford Escape Hybrid 4WD $1,950
GMC Sierra 2WD Hybrid Pickup Truck $ 250
GMC Sierra 4WD Hybrid Pickup Truck $ 650
Honda Accord AT $1,300
Honda Accord Navi $1,300
Honda Civic CVT $2,100
Lexus* GS450h = NO CREDIT NOW
Lexus * RX 400h 4WD = NO CREDIT NOW
Lexus* RX 400h 2WD = NO CREDIT NOW
Toyota Prius = NO CREDIT
Toyota Hylander hybrid = NO CREDIT
Toyota Camry hybrid = NO CREDIT
Murcury Mariner Hybrid = 1950
Saturn Vue = 650
Here are some great websites to learn more about hybrid cars. And also this website called hybridcenter.org.
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Comment by Jerry
I think it is ridiculous not to allow a tax benefit for any particular hybrid just because it is popular. Seriously, what reasonable logic could lead to that decision? Do the insurance companies care which hybrid you purchase in determining your premium, I wonder? And if so, is it because of the popularity of the vehicle? What a preposterous concept.
Jerry
www.leads4insurance.com
Comment by Toyota Aurion Sport Concept
I think the government has made the right IRS policy to support environmental issues. If a car like Prius is popular enough, there is no need to put some tax credit on that model to attract more purchase for the sake of the environment. Instead least popular hybrids should be with the most tax credit applied.
Comment by John Brown / Hybrid Cars
Thanks for adding some measurements to your article.