Truth About Tax Credit For Hybrid Car
As more and more hybrids are starting to hit the market, it seems that the government is also forced to apply taxes as well. But tax credit for hybrid car products may are not so bad either. The Internal Revenue Service has already certified a bunch of hybrid car models for this credit. This is probably one of the best incentives that the government has to offer for consumers who purchase the most fuel-efficient of hybrid cars to date.
What Tax Credit Is
Hybrid cars bought on or after January 1, 2006 are entitled for a tax credit varying from $400 to $3,400. The range of amounts depends on the fuel economy. On the other hand, this credit tax may not endure due to the fact that it also highly depends on how many people will want to buy new hybrid cars and other automobiles. This indicates that tax credits are predicted to be a short-term offer as manufacturers reach a certain quota of sold hybrid car products. Evidently, trade names that are less in demand will not be largely influenced if sales do not rise outstandingly.
Qualified Models
The IRS came up with a list of all qualified hybrid cars that can be eligible for tax credit. This includes cars that were sold after January 1 2006 and the list even includes cars that are due out in 2008. Here is a tax credit for hybrid car list for 2007 hybrid cars and their respective tax credit amounts:
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
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.
Your income tax liability will be lowered through the tax credit offered. Any leftovers are not allowed to go over to the subsequent year. The government is endorsing more cars that save energy and are safe for the environment by giving buyers benefits. These benefits include being able to save more on gas as well as through tax breaks.
For a more complete 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.