Tax Credit For Hybrid Car
Posted on August 16, 2009
Filed Under Taxes | Leave a Comment
These days, there is a rise in new fuel-efficient hybrid car products for sale. Due to this rise the government is compelled to apply taxes. Those who are planning on buying a hybrid car should not be at a loss though. The Internal Revenue Service has already legitimized a handful of hybrid car brands and models for a tax credit. This may be a pretty good offer for those planning on buying a hybrid car, and it could be one of the best incentives initiated so far.
What Tax Credit Is
Tax credit for hybrid car credits simply means that qualified vehicles that were purchased on or after January 1, 2006 are eligible for a tax credit ranging from $400 to $3,400 based on fuel economy. This tax credit may not last long, however, and really does depend on the demand for new hybrid cars or other vehicles. Now what this means is that tax credits may phase out much quicker than expected once manufacturers hit a particular number of hybrid units sold. Less popular brands, of course, will be affected to a lesser extent if sales do no rise too fast.
Models That Are Eligible
The IRS has produced a list of all hybrid cars that have the possibility of being qualified for a tax credit. This list is comprised of automobiles that are sold after January 1, 2006 as well as those payable in 2008. Relevant tax credit totals are listed in the following document:
2007 Chevrolet Silverado (2WD): $250.00 2007 Chevrolet Silverado (4WD): $650.00 2007 Ford Escape 4 WD Hybrid: $1,950 2007 Ford Escape Front WD Hybrid: $2,600 2007 GMC Sierra (2WD): $250.00 2007 GMC Sierra (4WD): $650.00 2007 Honda Accord Hybrid AT: $1,300 2007 Honda Accord Hybrid Navi AT: $1,300 2007 Honda Civic GX compressed natural gas vehicle: $4,000 2007 Honda Civic Hybrid CVT: $2,100 2007 Lexus GS 450h: $1,550 2007 Lexus RX 400h 2WD and 4WD: $2,200 2007 Mercury Mariner 4 WD Hybrid: $1,950 2007 Nissan Altima Hybrid: $2,350 2007 Saturn Aura Green Line: $1,300 2007 Saturn Vue Green Line: $650 2007 Toyota Camry Hybrid: $2,600 2007 Toyota Highlander Hybrid 2WD and 4WD: $2,600 2007 Toyota Prius: $3,150.
Only New Cars Qualify
Although tax credit is being offered, there are still conditions that apply. For example, one condition is that only new hybrid cars are eligible for the tax credit. The hybrid car purchased must be brand new and not second-hand. Another condition is that the hybrid car cannot be resold by the purchaser and should be bought solely for personal or business purposes.
The thing about acquiring the tax credit for hybrid car goods is that your income tax liability will be lessened. Furthermore, any surplus cannot be passed on to the succeeding year. What all this information means is that, the government is practically encouraging the purchase of automobiles that are more energy-saving and environmentally friendly by giving buyers the benefit of saving money on gas. Additionally, the government is allowing buyers of hybrid cars to save through tax breaks.
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