Hybrid Tax Credits Harder to Find

The government loves to give our tax dollars to a variety of people, but under arcane IRS rules only the first 60,000 hybrid cars from any given manufacturer are eligible for "full" tax credits for the buyers. Toyota hit that number a long time ago and Honda did so in January.

According to these complex rules, consumers can still qualify for 50% of the tax credit from Honda hybrids from January through June 30. Then it gets cut in half again until January of 2009, at which time it disappears altogether.

So if you want the full credit, buy a Ford (which is projected to hit the cap later this year) or you can go GM. Remember, a GMC Yukon hybrid gets 20 city/21 highway and a hybrid Chevy Tahoe gets a whopping 21 city/22 highway!

Oh wait, it turns out that the dollar amount for tax credits also changes "based on the fuel economy and weight of the model." Maybe those won’t result in a big payoff after all.

Someone remind me, why don’t we just drill in the ANWR and off the coast of Florida while we build a couple of nuclear power plants and abolish the IRS? Life would certainly end up simpler.

Source: US News

Posted February 29th, 2008 Filed in Energy