Tax Credits And Benefits For Hybrid Car Owners

You might be wondering what tax incentives you are entitled to as a hybrid car owner. Do these incentives really make the hybrid vehicle worth its price tag? In the long run, do hybrid cars become cheaper to own? What about using hybrid vehicles on HOV lanes?

Beginning January 2006, an according to the Energy Policy Act, the government began awarding major tax credits to consumers who buy hybrid cars.

Tax credits are usually much more valuable than a tax deduction. Tax credits reduce tax amount dollar-for-dollar. On the other hand, a tax deduction will only remove a percentage of the taxes you may owe. Hybrid owners can itemize purchases on federal income tax forms, which in turn lower the total tax amount owed to the federal government.

Fact: hybrid vehicles carry a higher price tag than that of conventional gas engine vehicles. The reason lies with their costly batteries and because the hybrid vehicle has not one, but two separate engine beneath the vehicles. Despite this, tax credits do much to offset the cost of owning a hybrid car.

Plug-In Hybrids

Car buyers who purchase new gas-electric cars were eligible for over $3,000 in federal tax credits. However, these tax credits applied to the first 60,000 hybrid vehicles cars that could be sold by a single automobile manufacturer. You had to act early to benefit from these tax advantages. Business and private hybrid owners or lessees are eligible for income tax credits for gas electric hybrid vehicles that are placed in service starting January 1, 2006 and bought on or before December 31, 2010.

The amounts of tax credits for hybrid vehicles are based on fuel economy improvements when compares to conventional vehicles in the same class of car or truck. Therefore, hybrid car owners with the highest fuel efficiency receive the largest tax credits for their vehicles.

As Hybrid Tax Credits Expire, Edmunds.com Evaluates Payback Period of Hybrid and Diesel Vehicles

Small Croat firm has big dreams for electric car
Fancy electric cars are hardly the first thing that comes to mind when talking about Croatia. Ethnic wars of the 1990s or the booming tourism on its pristine Adriatic coast are the far more common associations.

Read more on Reuters via Yahoo! News

Ford, Microsoft team up on electric-car system
Ford Motor Co. and Microsoft Corp. have signed a deal to work together on a computerized link between houses, electric cars and utility companies to help manage energy use. Microsoft – Electric car – Ford Motor Company – ElectricVehicle – Public utility

Read more on MSNBC

Hybrid interest in midstate tied to gas prices, dealers say
Middle Georgia automobile dealers say that, for now, much of the interest in the fuel-efficient models they carry coincides with the price of gasoline.

Read more on Macon Telegraph

Ford to show off Lincoln MKZ hybrid today
Ford said today that it will introduce a hybrid version of the Lincoln MKZ this fall and plans to market the vehicle as the most fuel-efficient U.S. luxury hybrid. The 2011 Lincoln MKZ Hybrid is to be revealed at a news conference today at the New York auto show.

Read more on Detroit Free Press

As Hybrid Tax Credits Expire, Edmunds.com Evaluates Payback Period of Hybrid and Diesel Vehicles
SANTA MONICA, Calif.–Fluctuating gas prices, expiring tax credits and economic instability have many consumers wondering if purchasing a hybrid or diesel vehicle is the most cost-effective choice in today’s market.

Read more on The Auto Channel