Tax guide for hybrid and alternative fuel car buyers
As tax day approaches here in the United States, those who bought a new hybrid or natural gas powered vehicle during 2006 shouldn't forget to claim their tax breaks. Cars.com has published a list of the eligible vehicles and how much of a break you can get on each one. Depending on when you bought your car, your tax credit may also be less, as they are ratcheted downwards once a manufacturer sells more than 60,000 units starting from January 1, 2006. So far Toyota is the only one to hit that threshold although Honda is also expected to hit it this year. At the current sales rates after October of this year Toyota hybrids will no longer be eligible for federal tax breaks. Besides the federal tax credits, there may also be state and local incentives to buy a hybrid, so be sure to check those rules too. As usual your mileage may vary, so when in doubt consult with a tax professional.
[Source: Cars.com]
Reader Comments (Page 1 of 1)
prius_and_mariner_owner 8:31AM (4/20/2007)
WHY does this law PUNISH the hybrid manufacturer for being successful? So what if Toyota sold more than 60,000 units. Hooray for them! Why shouldn't all the owners be treated equally?
Jon Payne
Atlanta GA
2002 Prius, 2007 Mariner Hybrid
Reply