Tax Credit for Hybrid Car

The IRS (Internal Revenue Service) has, since 2005, begun to give tax credits for people who adopt the green technology. Previously, tax credits were only apply to gas-electric hybrid automobiles. This clean fuel burning deduction policy was replaced by the Energy Policy Act in 2005.

Under this act, a tax credit is minused directly from the total amount of federal tax owed by the taxpayers. This reduction can even resulted in a taxpayer not having to pay tax at all. You can look for additional information from your car's manufacturer or local dealer to confirm on your vehicle's allowable tax credit.

Every taxpayer will be eligible for this tax credit if their hybrid vehicle was bought after January 1st, 2006. This tax credit also applies even if your car was placed in service after the said date.

A hybrid vehicle is defined to have drive trains powered by both an internal combustion engine and a rechargeable battery. In addition, most of the current hybrid vehicles qualify for the tax credit.

It is important to note that the credit is permitted to only the original purchaser of a new qualifying vehicle. Under this condition, the leasing company may claim the credit if the said vehicle is leased to a consumer.

Tax Credit for Hybrid Car:

1. Make: Chevrolet
Model: Malibu Hybrid, Credit Amount $1,300
Model: Tahoe Hybrid 2WD and 4WD, Credit Amount $2,200

2. Make: Ford
Model: Escape Hybrid 2WD, Credit Amount $3,000
Model: Escape Hybrid 4WD, Credit Amount $2,200

3. Make: GMC
Model: Yukon Hybrid, Credit Amount $2,200

4. Make: Honda
Model: Civic CVT, Credit Amount $0 to $2,100 depending upon the purchase date.

5. Make: Mazda
Model: Tribute 2WD, Credit Amount $3,000
Model: Tribute 4WD, Credit Amount $2,200

6. Make: Mercury
Model: Mariner Hybrid 2WD, Credit Amount $3,000
Model: Mariner Hybrid 4WD, Credit Amount $2,200

7. Make: Nissan
Model: Altima Hybrid, Credit Amount $2,350

8. Make: Saturn
Model: Aura hybrid, Credit Amount $3,000
Model: Vue Green Line, Credit Amount $1,550

9. Make: Toyota
Model: Camry Hybrid, Credit Amount $0 to $2,600 depending upon purchase date
Model: Prius, Credit Amount $0 to $3,150 depending upon purchase date
Model: Highlander Hybrid 4WD, Credit Amount $0 to $2,600 depending upon purchase date

10. Make: Lexus
Model: RX 400h 2WD and 4WD, Credit Amount $0 to $2,200 depending upon purchase date
Model: LS 600h L Hybrid, Credit Amount $0 to $1,800 depending upon purchase date

Information is correct as at January 2008.