Hybrid Car Tax Credit / Deduction
In 2004 or 2005, hybrid car buyers can claim a $2,000 one-time deduction on your 2004 or 2005 tax returns.
From 2006 on, a revised federal tax incentive program for hybrid cars takes into effect. The new incentives—full-dollar tax credits—are more valuable than the current tax deductions, which are a reduction of taxable income. It uses a formula to calculate the tax credit, which considers both relative fuel economy and the total amount of fuel saved -- a system that favors large vehicles. The amount of the tax credit also depends on when you buy, and from which company, further complicating consumers' purchasing decisions. The tax credit is cut in half for each manufacturer three months after the company sells a total of 60,000 hybrids.
From 2006 on, a revised federal tax incentive program for hybrid cars takes into effect. The new incentives—full-dollar tax credits—are more valuable than the current tax deductions, which are a reduction of taxable income. It uses a formula to calculate the tax credit, which considers both relative fuel economy and the total amount of fuel saved -- a system that favors large vehicles. The amount of the tax credit also depends on when you buy, and from which company, further complicating consumers' purchasing decisions. The tax credit is cut in half for each manufacturer three months after the company sells a total of 60,000 hybrids.
posted by ahappydaisy at
9:46 AM
1 Comments:
You can see the estimated tax credit for hybrid cars at here. If you're considering buying a hybrid, getting one which qualifies for the tax credit before they expire will go a long way to making the car a money saver as well as a environmentally friendly purchase.
By
Anonymous, at 6:15 PM
Post a Comment
<< Home