If you purchased or leased a Hybrid Vehicle last year, you may be eligible for a tax credit of up to $3150! In an ongoing effort by the government to make it seem like they are pushing hybrid technologies, the hybrid vehicle tax credit continues this year. In fact, if you purchase one before 10/1/07, you can claim a credit next year too.
There are currently 44 different models of cars that are classified as Hybrid vehicles and are eligible for the tax credit. The highest credit goes to a ‘05,’06, or ‘07 Toyota Prius purchased on or before 9/30/06. The lowest is a tie between the two 2WD General Motors pickups. The Chevrolet Silverado 2WD hybrid from ‘06 and ‘07 and the GMC Sierra 2WD hybrid from ‘06 and ‘07. The credit for either of those if purchased on or before 9/30/06 is only $250. Better than nothing I suppose.
Another key point is that there are several dates that are important. Obviously, for full credit, the purchase had to have been on or before 9/30/06. The credits are reduced again for vehicles purchased after 3/31/07, again after 9/30/07 and the credits are gone if you purchase a vehicle after 9/30/07.
You can see all the eligible vehicles and their respective credits at the IRS website. It’s a news article so be sure to take a look for anything new if you are reading this after about March of 2007.
[tags]hybrid vehicle,taxes,tax credit,refund,hybrid,irs[/tags]
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A note about the credit from a great Edmunds.com article about the real cost of owning a hybrid:
“One hitch in receiving the tax credit is that the Energy Policy Act limits the number of vehicles from an automaker that can receive the credit. Once a manufacturer sells 60,000 vehicles, the credit gradually decreases over a period of 15 months until it is phased out entirely. While the act keeps the tax credit in effect until 2010, some automakers could conceivably sell their maximum number of qualifying vehicles much sooner. Toyota, for example, which sold about 130,000 Priuses in 2005, will likely reach the 60,000-vehicle maximum in the middle of 2006.”
FYI.