|
|
Hybrid Car Tax CreditsGovernment Money For Purchasing Hybrid, Lean Burn and CNG Cars |
Alternative Energy Tax Credits
|
There's good news and bad news on the hybrid car front. The good news is
that the government established a series of generous tax credits for hybrid
car buyers that help make up for their higher pricing. That bad news is that
those rebates are running out as car models mature. The most popular hybrids,
such as the Toyota Prius, no longer qualify for a government tax credit,
since Toyota has long since sold over the 60,000 vehicles the law stimulated
and the wind down period has expired as well. Even though the 2010 Prius
is third generation, new modeling, etc, as far as I know, there's no credit
expected for it. If your sole purpose in selecting a hybrid car is to score
some free government money on your tax return, you have to pick a new hybrid
from a manufacturer who hasn't sold 60,000 of them yet. The credits are available
through the end of 2010 and may very well get extended, or a new set of
incentives could be announced.
The hybrid tax credit is only good for the original purchase, for the owner, so buying a second hand hybrid or leasing one from a company won't get you the credit. The car must be operated primarily in the U.S., so you can't buy one and spend all of your time commuting between California and Alaska - there's too much Canada in between. After the manufacturer sells 60,000 of a new model, at the end of the following quarter, the credit starts to phase out. It's initially reduced by 50% for six months, and then by 75% for the final six months. It's not up to you to determine what consists of a hybrid or whether you deserve a credit, the IRS has a list. To summarize, credits have already phased out for the practical hybrids you've already heard of, most of what's left is SUVs and luxury cars. Just look at the 2010 models, , the BMW ActiveHybrid X6 ($1,550), the Cadillac Escalade Hybrid ($2,200), a range of Chevy's Malibu's, Tahoe's, and Silverado's ($1,550 - $2,200), Ford Escapes and Fusions ($650 - $3,400 depending on model and purchase date), GM Sierra and Yukon Hybrids ($2,200), Mercury Mariner and Milan Hybrids ($650 - $3,400, see Fords above), a couple Mercedes models and the Nissan Altima Hybrid ($2,350). The Altima is the only practical car on the list. It's not like hybrids are a brilliant new innovation either. The patent below shows a full hybrid implementation (minus regenerative braking) from 1898!
A very similar credit is available for advanced lean burn cars, which increase gas mileage by running a leaner mix than previous engines (more air, less gas or diesel), and show at least a 25% gain in mileage over previous generation models. The German manufacturers are big on this technology, credits are available for some Volkswagen, BMW, Audi and Mercedes Benz models, but none of the credits are over $2,000. Another option is the Honda Civic GX. Built (or assembled) in the U.S., this car runs on compressed natural gas (CNG) and qualifies for a $4,000 tax credit through 2010. It falls under the category of QAFMV (Qualified Alternative Fuel Motor Vehicles). These include compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen and any fuel that is 85% or more methane. A company like Altech offers conversion kits for Ford and Mercury vehicles to either replace gas or make an alternative fuel optional. Another, Baytech, specializes in dual fuel conversion kits for vans and pick-up trucks. Alternative fuel systems are far more common for large vehicles, trucks, busses, construction and industrial equipment. Some of these have long been powered by compresses natural gas to cut down on urban pollution, and the credits for large vehicles can run into the tens of thousands of dollars.
|
