Buy New Hybrid Cars and Avail the Tax Credit
Do you know that you can decrease the amount of taxes you pay through buying a new hybrid gas-electric or diesel automobile? This is because of the new energy-efficiency home and vehicle tax credits. A tax credit can be claimed in your federal income tax at the end of the year. Otherwise, your tax refund will increase.
A tax credit of $250 - $3,400 is given to taxpayers who buy energy-efficient vehicles in an effort to encourage the use of these. One way to ensure this is through agencies such as Alliance to Save Energy especially when you opt to replace your old vehicle with low-emissions ones. This agency is limited only to United States.
How can you use this? Any individual or business buying a new hybrid or diesel vehicle can apply for this tax credit. Hybrid vehicles include the ones that use less gasoline. These cars should also meet the emissions standard. You can opt to buy diesel vehicles however; there are a few that meet the emissions standards. Other options include plug-in hybrid or pure electric vehicles, alternative-fuel vehicles and fuel-cell vehicles.
The tax credit depends on the fuel economy and the weight. For example, you can get a tax credit amounting to $2,200 if you buy the 2009 Chrysler Aspen and Dodge Durango Hybrids. The 2010 Ford Fusion and Mercury Milan Hybrids have a higher worth of tax credit at $3,400. Both 2008 and 2009 Mazda Tribute Hybrids are worth $3,000. Also worth $3,000 tax credit are 2008 and 2009 Ford Escape, Mercury Mariner Hybrid. Vehicles with smaller tax credits include 2006 - 2007 Chevrolet Silverado and GMC Sierra Hybrids at $250 worth. While the 2010 Chevrolet Malibu Hybrid is worth $1,550 tax credit, a year older of the same kind is $1,500 and two years older of it is worth $1,300 tax credit.
The tax credit is available in vehicles placed in service after December 31, 2006 and purchased on or before December 31, 2010. You will only need to accomplish IRS Form 8910 and file it with your taxes, a certification from the manufacturer, and receipt of your purchase. Buyers of hybrid cars who purchased in 2005 can also avail a $2,000 tax deduction.
In addition, Alternative Fuel Vehicles (AFVs), which can be ran by alternative fuels such as compressed natural gas (CNG), ), liquefied natural gas (LNG), liquefied petroleum gas (LPG), hydrogen, or any liquid at least 85% methanol by volume, are eligible for a federal income tax credit worth of up to $4,000.
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- How to Choose the Right Car for Your Driving Needs
Tagged with: alternative fuel vehicles • energy tax credit • fuel cell vehicles • Hybrid Cars • tax credit • vehicle tax credits
Filed under: Hybrid Cars • news
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I don’t know about these cars. I see them on the road and they look too dangerous. I wouldn’t want to get in a wreck in one. It would probably fold up! lol Anyway, nice post =)