Hybrid Car Credit

Hybrid car credit is due to a law that says that hybrid cars purchased or placed into service after December 31, 2005 may be eligible for a federal income tax credit.

This credit amounts up to $3,400. However, the credit amounts begin to phase out for a given manufacturer once it has sold over 60,000 eligible vehicles, and this has happened to several manufacturers.

You can see the list of which manufacturers cars and models are still available for the tax credit from

www.fueleconomy.gov/feg/tax_hybrid.shtml

IRS has also summarized the rules of The Energy Policy Act of 2005 by which these cars are credited with at

www.irs.gov/newsroom/article/0,,id=157557,00.html

According to those rules, the credit is only available to the original purchaser of a new, qualifying vehicle.

Also, if a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.

The latest list of model year 2008 hybrid vehicles is available (as of writing this, May 2008) at

www.irs.gov/irs/article/0,,id=176409,00.html

where you can check the associated credit amount.


From Hybrid car credit page to Hybrid Cars Guide index