The tax credit available on each hybrid is generated by the use of a calculation and two tables. The total hybrid car tax credit is determined by the Fuel Economy credit and the Conservation credit. The fuel economy credit is based on its fuel usage for its weight class. The better a certain hybrid performs in this arena the higher the credit it will be awarded.
The conservation credit is determined by how fuel effective the vehicle is. In other words it is directly related to how much gas the hybrid saves. As in the case of the fuel economy credit the higher the percentage the better the tax credit will be.
Some of the hybrid cars that have come out on top of these ratings have been the Prius and Escape Hybrid. The Prius comes to its new owner with a $3150 tax credit. That number takes a significant amount out of the original price.
Ford’s 4-wheel drive Escape Hybrid SUV is a high dollar amount as well. Its tax credit comes out to be $1950. The consumer who is considering buying a hybrid car can easily look into the current value of each models tax credit by contacting the dealership or the manufacturer directly.
The new energy bill and a new hybrid car could help keep the IRS away. The current tax credit break given to hybrid owners may just be the thing to put this form of new technology in the forefront of the minds of American car buyers.
Purchasing a new hybrid not only helps with the rising cost of gas and the danger to the environment, but also is an excellent resource for deferring the cost with the tax credit. The hybrid car tax credit is an incentive few people would want to miss.