2006 Hybrid Tax Credits

[katzjamr]

After five years of trying, Congress is expected to clear an energy bill this week containing new tax credits for hybrid cars. The Wall Street Journal on Thursday mentions: "One of the biggest new tax breaks is an auto industry-backed tax credit, valued at thousands of dollars for SOME vehicles, for buying a hybrid car--one that uses both gasoline and electricity--or a vehicle powered by electricty or fuel cells. The tax credit which replaces a less generous tax deduction, is linked to the weight and fuel efficiency of the vehicles."

The article goes on to say, "A tax credit gives the taxpayer a dollar-for-dollar reduction in his or her taxes." The tax breaks for hybrids are smaller, and the bill limits the number of hybrids sold by any one manufacturer that can claim the credit. Most of the credits apply to vehicles purchased or leased from the beginning of 2006 through the end of 2009."

I do not have exact figures on the amount of tax credits, and which cars they apply to. I will post more when that info is available.