And for the past couple years, there's been a tax deduction for those who purchased a hybrid car or SUV for environmental, business, economic, or just about any other reason under the sun.
Come January 1, 2006 however, the hybrid tax deduction will go away in lieu of a new hybrid tax credit.
That's because on August 8, 2005 President Bush signed a new energy bill into law that revised the federal tax incentive program for hybrid vehicles.
[blockquote]For the record: A "tax credit" is more valuable than a "tax deduction" because it represents a dollar-for-dollar reduction on a buyer's tax bill.[/blockquote]
Here's How It Works... In short, according to the U.S. Dept. of Energy's Fuel Economy website:
- Hybrids placed in service by December 31, 2005 are still eligible for the tax deduction.
- Hybrids placed in service after this date will no longer be eligible for these deductions but may be eligible for a federal income tax credit under new legislation?the amount will depend upon the vehicle's fuel economy, estimated fuel savings, and other factors.
Is There A Hybrid In Your Future? So, are you considering a hybrid vehicle? Now might be the PERFECT time to buy one. But don't wait too long!...
After an automaker meets its quota of selling 60,000 hybrid vehicles, the tax credit for that automaker's hybrids gets phased out. Word is <a href="http://www.hybridcars.com/tax-deductions.html" target="_Blank">Toyota and Honda</a> are both close to approaching that figure.
Here are the specifics regarding the hybrid tax credit: [blockquote]"Once a manufacturer sells a total of 60,000 hybrids, consumers will continue to receive the full credit in the next calendar-year quarter. But for the six months after that, the credit drops to 50 percent and then to 25 percent for the next six months. After that, it disappears." Source: http://www.buffalonews.com/editorial/20051026/1003298.asp[/blockquote]
In theory, both the "tax deduction" and the "tax credit" for buying new hybrid vehicles were intended to jump-start hybrid purchases in the U.S. Perhaps it has helped, since hybrid sales have in fact grown to new heights.
Dec 17 2006 Check Out The New Hybrid Tax Credit First, there was a tax deduction for those who bought SUVs for "business purposes"...
And for the past couple years, there's been a tax deduction for those who purchased a hybrid car or SUV for environmental, business, economic, or just about any other reason under the sun.
Come January 1, 2006 however, the hybrid tax deduction will go away in lieu of a new hybrid tax credit.
That's because on August 8, 2005 President Bush signed a new energy bill into law that revised the federal tax incentive program for hybrid vehicles.
[blockquote]For the record: A "tax credit" is more valuable than a "tax deduction" because it represents a dollar-for-dollar reduction on a buyer's tax bill.[/blockquote]
Here's How It Works... In short, according to the U.S. Dept. of Energy's Fuel Economy website:
- Hybrids placed in service by December 31, 2005 are still eligible for the tax deduction.
- Hybrids placed in service after this date will no longer be eligible for these deductions but may be eligible for a federal income tax credit under new legislation?the amount will depend upon the vehicle's fuel economy, estimated fuel savings, and other factors.
Is There A Hybrid In Your Future? So, are you considering a hybrid vehicle? Now might be the PERFECT time to buy one. But don't wait too long!...
After an automaker meets its quota of selling 60,000 hybrid vehicles, the tax credit for that automaker's hybrids gets phased out. Word is <a href="http://www.hybridcars.com/tax-deductions.html" target="_Blank">Toyota and Honda</a> are both close to approaching that figure.
Here are the specifics regarding the hybrid tax credit: [blockquote]"Once a manufacturer sells a total of 60,000 hybrids, consumers will continue to receive the full credit in the next calendar-year quarter. But for the six months after that, the credit drops to 50 percent and then to 25 percent for the next six months. After that, it disappears." Source: http://www.buffalonews.com/editorial/20051026/1003298.asp[/blockquote]
In theory, both the "tax deduction" and the "tax credit" for buying new hybrid vehicles were intended to jump-start hybrid purchases in the U.S. Perhaps it has helped, since hybrid sales have in fact grown to new heights.