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Tax credits and deductions for hybrid vehicles

Updated: April 16, 2009

--New-->  Tax credits for plug-in's a done deal (more)

Also, Should there be a new tax credit for non-plug-in hybrids? (more)

The new clean vehicle tax credit called for a tax credit of between $500 and $3400, depending on the vehicle, but the credit was be capped at 60,000 vehicles per manufacturer.

Thus, tax credits for many hybrid cars have already expired, or are close to expiring. For instance, all Toyota and Lexus hybrid vehicles no longer qualify for any tax credits. The Honda Civic hybrid only qualifies for one quarter if the original credit, but Honda's credit will expire at the end of December of 2008.

Chevy Malibu Hybrid = $1,300.00
Chevy Tahoe Hybrid = $2,200.00
Chrysler Aspen Hybrid = $2,200
Dodge Durango Hybrid =$2,200
Ford Escape Hybrid = (2009) 2wd=$1,500; 4wd=$975.00
(2008) 2wd=$1500.00; 4wd=$1100.00
Ford Fusion Hybrid = $3,400.00
GMC Yukon Hybrid = $2,200.00
Honda Accord Hybrid =  No longer sold
Honda Civic Hybrid = Expired.
Honda Insight Hybrid = Expired.
Lexus RX400h Hybrid = Expired
Mazda Tribute Hybrid = (2008) 2wd=$1500.00; 4wd=$975.00
Mercury Mariner Hybrid = (2009) 2wd=$1500.00; 4wd=$9750.00
(2008) 2wd=$1500.00; 4wd=$1100.00
Ford Fusion Hybrid = $3,400.00
Nissan Altima Hybrid = $2350.00
Saturn Aura Hybrid = $1,300.00
Saturn Vue Hybrid = $1,550.00
Toyota Camry Hybrid = Expired
Toyota Highlander Hybrid = Expired
Toyota Prius Hybrid = Expired

Should there be a new tax credit for non-plug-in hybrids? (more)

After the full credits have been reached, the full credit will still be available, but for only one more quarter. After this quarter, the credit will drop 50% for two more quarters, then 25% for two more quarters, and then it fully expires.

Also, depending upon your income, you may qualify for less than the full tax credit. Please consult your tax advisor.

Before 2006

Tax credits for hybrid cars were included in the Energy Bill approved by Congress. Unfortunately, clean vehicle tax credits are capped and diesel vehicles are also eligible. While the credits are a small gain, the clean vehicle tax credit appears that it will become just another loophole for the Big 3 to increase their fuel inefficiency (More)

Hybrid cars such as the Toyota Prius, Honda Civic Hybrid, Honda Accord Hybrid, Ford Escape Hybrid, Lexus RX400h Hybrid, Toyota Highlander Hybrid qualify for a one-time federal income tax deduction of up to $2,000 if they were purchased before before 2006.

Consumers that purchase one of these hybrids in 2005 can utilize the Clean Fuel tax deduction on line 32 of your 1040 tax form (more info). In 2006, this credit was scheduled to be reduced to $500.

More on this, Hybrid tax credits and carpool lane privileges: It's all hype.

Originally posted, January 24, 2005

The Ford Escape Hybrid  The world's first hybrid SUV.
V6 power with V4 fuel efficiency, the Escape hybrid offers SUV functionality and environmental awareness.  (more) ( test drive)
The Honda Accord Hybrid  Simply the best Accord.
Faster than a conventional Accord, the hybrid Accord is the first V6 hybrid and is shows. (more) (test drive)
The Honda Civic Hybrid The first converted hybrid vehicle
Looks like a Civic, drives a Civic, but at 50 mpg it gets 40 percent better gas mileage than a regular Civic. (more)
The Lexus RX400h Hybrid The world's most luxurious hybrid SUV.
Due out April 15, this hot hybrid has already received 11,000 down-payments  (more)
The Toyota Prius Hybrid   The hybrid car leader at just $20,000?
Simply an unbelievable piece of automotive technology. The future is here. (more) (test drive)
The Toyota Highlander Hybrid The first Toyota hybrid SUV is set to explode.
The hype around this hybrid SUV is huge and growing. Get in line now, you might be there a while (more)

We the people, must be the difference. Join the revolution, buy a hybrid car