Tax Credit for Hybrid Car

These days, there is a rise in new fuel-efficient hybridWD Hybrid: $2,600 2007 GMC Sierra (2WD): $250.00
car products for sale. Due to this rise the government2007 GMC Sierra (4WD): $650.00 2007 Honda
is compelled to apply taxes. Those who are planningAccord Hybrid AT: $1,300 2007 Honda Accord Hybrid
on buying a hybrid car should not be at a loss though.Navi AT: $1,300 2007 Honda Civic GX compressed
The Internal Revenue Service has already legitimized anatural gas vehicle: $4,000 2007 Honda Civic Hybrid
handful of hybrid car brands and models for a taxCVT: $2,100 2007 Lexus GS 450h: $1,550 2007 Lexus
credit. This may be a pretty good offer for thoseRX 400h 2WD and 4WD: $2,200 2007 Mercury
planning on buying a hybrid car, and it could be one ofMariner 4 WD Hybrid: $1,950 2007 Nissan Altima
the best incentives initiated so far.Hybrid: $2,350 2007 Saturn Aura Green Line: $1,300
What Tax Credit Is2007 Saturn Vue Green Line: $650 2007 Toyota
If you purchased a hybrid car on or after January 1,Camry Hybrid: $2,600 2007 Toyota Highlander Hybrid
2006, your purchase may be eligible for a tax credit2WD and 4WD: $2,600 2007 Toyota Prius: $3,150
that can amount to $400 to $3,400. The amounts varyNew Cars Only
depending on how the fuel economy goes. Conversely,The government may offer a tax credit for hybrid
the tax credit may only be temporary because it alsocars, but limitations still apply. For instance, only hybrid
relies on whether new hybrid cars and other cars arecars that are new are qualified for a tax credit. When
in demand. This suggests that tax credits could lasta buyer purchases a hybrid car, it must not be a used
just a short period of time whenever manufacturerscar. Furthermore, hybrid cars that have been
arrive at a certain mark in their car sales. Apparently,purchased by the buyer cannot be sold again. You
hybrid car brands that aren't as popular will not bemust buy a hybrid car only for personal or business
greatly affected if the number of sales does notuse, and not for any other purpose.
increase too quickly.The thing about acquiring the tax credit for hybrid car
Models That Are Qualifiedgoods is that your income tax liability will be lessened.
The IRS has produced a list of all hybrid cars thatFurthermore, any surplus cannot be passed on to the
have the possibility of being qualified for a tax credit.succeeding year. What all this information means is
This list is comprised of automobiles that are sold afterthat, the government is practically encouraging the
January 1, 2006 as well as those payable in 2008.purchase of automobiles that are more energy-saving
Relevant tax credit totals are listed in the followingand environmentally friendly by giving buyers the
document:benefit of saving money on gas. Additionally, the
2007 Chevrolet Silverado (2WD): $250.00 2007government is allowing buyers of hybrid cars to save
Chevrolet Silverado (4WD): $650.00 2007 Fordthrough tax breaks.
Escape 4 WD Hybrid: $1,950 2007 Ford Escape Front