Tax Credits
for Hybrid Vehicles
Updated: June, 2007
The new clean
vehicle tax credit calls for a credit of between $500 and
$3400 per consumer per vehicle, but the tax credit will be capped at 60,000
hybrid vehicles per
manufacturer.
Thus, credits
for Toyota hybrids will quickly run out. Expect that by
sometime next year, tax credits for for Toyota hybrids, such
as the Prius, Highlander hybrid, Lexus RX400h, and the Camry
hybrid will be depleted. Currently, the hybrid tax credit
for these Toyota hybrids has been reduced to just
one-quarter of the original credit.
Original Hybrid Tax
Credits
Ford
Escape Hybrid = 2wd=$2600.00; 4wd=$1950.00
Honda
Accord Hybrid = $650.00
Honda
Civic Hybrid = Auto=$2100.00; Man=$1700.00
Honda
Insight Hybrid = Auto=$1450.00
Lexus
RX400h Hybrid = $2,200.00
Mercury
Mariner Hybrid = $1950.00
Toyota
Highlander Hybrid = 2wd=$2,600.00; 4wd=$2,200.00
Toyota
Prius Hybrid = $3150.00
Before 2006
Tax credits
for hybrid cars were included in the Energy Bill approved by
Congress on Friday. Unfortunately, clean vehicle tax credits
are capped and diesel vehicles are also eligible. While the
credits are a small gain, the clean vehicle tax credit
appears that it will become just another loophole for the
Big 3 to increase their fuel inefficiency (More)
Hybrid
cars such as the Toyota
Prius, Honda
Civic Hybrid, Honda
Accord Hybrid, Ford
Escape Hybrid, Lexus
RX400h Hybrid, Toyota
Highlander Hybrid qualify for a one-time federal income
tax deduction of up to $2,000 if they were purchased before
before 2006..
Consumers that purchase one of these hybrids in 2005 can
utilize the Clean Fuel tax deduction on line 32 of your 1040
tax form (more
info). In 2006, this credit was scheduled to be reduced
to $500.
More on this, Hybrid
tax credits and carpool lane privileges: It's all hype.
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