What You Need To Know About Tax Credit For Hybrid Car
by Anton Rowd
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.
About Tax Credit
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 Qualified
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 The New
Of course, this tax credit does not apply to all hybrid cars. There are limits. One of these limits includes that the hybrid car you purchase must be brand new. This means that used hybrid cars are not qualified for tax credits. Hybrid cars must also only be purchased for personal or business use and not for resale.
The tax credit for hybrid car products will reduce your income tax liability. It is also a non-refundable tax credit and any excess cannot be carried over to the next year. But what does all this mumbo jumbo mean? The tax credit basically means that you can save money not only on from spending less on gas but you can save through tax breaks. The IRS and the government is basically trying to promote the use of more energy efficient and eco-friendly cars by allowing tax breaks for those who purchase new hybrid vehicles.
For a more updated list of hybrid car prices and a list of cars qualified for tax for hybrid car, log on to Anton Rowd's website on hybrid cars. This and other unique content 'cars' articles are available with free reprint rights.
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