Tax Credit For Hybrid Car

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As increasingly hybrids are beginning 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 maybe one of the greatest incentives that the government has to present for consumers who purchase the most fuel-efficient of hybrid cars to date.

A list has been released by the IRS, which consists of hybrid cars that might be certified for a tax credit. The list specifies hybrid cars sold after January 1, 2006. It also indicates those that are to be paid in 2008. Below are appropriate tax credit sums according to car model:

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 incontrovertible 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 provide 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.

What It Is

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 could possibly save money not only on from spending less on gas but you could possibly save through tax breaks. The IRS and the government is basically looking to promote the use of more energy efficient and eco-friendly cars by allowing tax breaks for those who purchase new hybrid vehicles.

Qualified Models

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.

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.

Only The New