What You Need To Know 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 It 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.
Models That Are Eligible
A list has been released by the IRS, which consists of hybrid cars that could 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:
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.
New Cars Only
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 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. - 21392
What It 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.
Models That Are Eligible
A list has been released by the IRS, which consists of hybrid cars that could 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:
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.
New Cars Only
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 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. - 21392
About the Author:
For a more updated list of hybrid car prices and a list of cars qualified for hybrid car tax credit, log on to Anton Rowd's website on hybrid cars.
posted by X - Men @ 12:36 AM
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