Your Guide to Tax Breaks for Hybrid Car Owners
The U.S. government has begun to offer tax breaks to those who purchase hybrid cars and trucks. Naturally this is being done to encourage people to buy the slightly more expensive vehicles, and to cut down on the U.S. foreign oil dependency. Not every car, however, qualifies for these tax deductions. Thus, it is a good idea to check with your local tax department before purchasing a hybrid to ensure that it will qualify for the deduction.
The value of the tax break for a hybrid car depends on the make, model and year of the car. Hybrid cars made before 2006 do not qualify for the tax break. If you decide on a particular make and model of a hybrid car, be sure to check with your local department of taxation to see how much of a tax break you'll get.
Meeting the right standards
In order to qualify for tax deductions, the hybrid car purchased must meet certain standards. Once again, you must check with your local tax department to find out the particular requirements in your state.
Some standards for hybrid cars to qualify for a tax deduction include averaging at least 45 miles per gallon and complying with ATPZEV emission standards. Only some models actually meet the 45 mpg standard. These include the Civic Hybrid, Prius, and Insight CVT.
Hybrid cars such as the Ford Escape, Honda Accord, and Lexus RX 400h do not qualify for the U.S. tax deduction because they don't fit miles per gallon criteria .(However the Honda Civic, Toyota Prius, and Honda Insight CVT do). They also do not currently comply with the ATPZEV emission standards. This further hurts their chances of qualifying for the U.S. tax break. So Choice of make & model is essential to qualify.
How much will I get?
So how does this all apply to you? Well, it depends on where you live. For instance, if you live in Colorado, you'll be eligible for a hybrid tax credit of up to $4713. You get this credit once only, in the year of purchase (so if you purchase a car in 2007, you'll get a tax credit that same year).
The value of your tax credit depends on the emissions of the car and the miles per gallon the car gives.. If it gets 40 or more MPG and emits very little pollutants, you can expect 100% of the credit. If it only meets one of the state standards, you'll get 50% of the tax break. In either case, you will get a tax credit.
But what if your car is ultra low emission? Well, then you'll get 75% of the full tax credit. If the hybrid car is super ultra low emission, you'll be able to get 85% of the maximum tax credit. This means that if the max U.S. tax credit is $4,000, you'll get a $3,400 deduction.
As has been mentioned earlier you must check with your state department to determine how much of a hybrid car tax break you'll be eligible for.
More Affordable
Hybrids were once out of reach for most people. However, these tax breaks now make hybrids more affordable for everyone.
Related Tags: technology, hybrid car, battery, toyota, honda, hybrid car tax credit, car prices, comparision
Toby Russell & his website http://www.knitting4beginners.com aims to offer simple advice and help for those starting out in the hobby of knitting.
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