June 24, 2008

Tax credits for hybrid autos

You may know that you can get a tax credit from the IRS if you buy a new hybrid vehicle. But you might not know that the credits available are limited per make of vehicle. When the allotted credits are used then further purchases will not be eligible for a credit.

To check if a hybrid is still eligible for a credit and what the amount is, Fueleconomy.gov site has a table of current tax credits for hybrid vehicles.

Toyota vehicles : no longer eligible for credits.
Honda : are only getting partial credits and are close to having the credits phased out.
Ford, GM and Nissan : all still eligible for full credits.

Remember you can only get the tax credit if you buy a NEW vehicle. Buying a new car of course is usually more expensive then buying a 1-2 year old used car. However, the tax credit might make it more worth while to look at the new car since it compensates for the difference.

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