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The
hybrid tax credit, now known as a "fuel dollar credit", has been
available in its revised format since January of 2006. Unlike
the $2,000, one-time hybrid car tax credit/deduction that was allowed
in 2004 and 2005, the fuel dollar credits vary by vehicle make, model,
and year. In addition, the purchase date is also important in
determining the allowable credit amount. If you own a hybrid
car, truck, suv, etc. - it's probably best that you consult with your
tax adviser before attempting to decipher all the rules and law changes
on your own.
To view the most recent IRS documentation (last updated on February 16,
2006), follow this link. Based on the
information issued by the Internal Revenue Service, it appears that
these credits will need to be updated prior to 2011, when they are
currently set to expire. In addition, credits on certain
vehicles will be phased out over time (as per notice 2006-78). |
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There are some sizable differences in fuel dollar credit amounts,
ranging from as little as $250 on the 2007 Chevy Silverado, 2WD pickup
- all the way up to $3000 for the 2008 Mercury Mariner (2 WD) and the
2008 Ford Escape (2 WD) suv's. In addition, IRC §30B
now allows for credits to be based on four potential vehicle
groups, identified as (1) fuel cell, (2) advanced lean burn technology,
(3) hybrid, and (4) alternative fuel. So, while it's out with
the old hybrid tax credits, another type of tax break is still
available. In addition to rebates, these are definitely
incentives worth reviewing prior to making a final decision as to which
hybrid to purchase.
* HybridTaxCredits.com
- This domain name is for sale or lease, and is also available
within a portfolio of hybrid domain names at Hybrid Kingdom.
Serious inquiries can be made through info@HybridKingdom.com.
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