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From Brian Sy, Featured Contributor
Posted on May 27, 2008
Filed under Industry, Environment, Advice
For many consumers, the decision to purchase a hybrid partly depends on finances. The car's price and fuel economy are two major factors, but a third -- perhaps the least understood -- is how big a break you get from Uncle Sam. The answer is different for every make/model of car, and it changes over time. Let's see if we can clear things up.First, some background. When hybrids were young, the government handed out tax deductions for buying hybrids. Their phase-out in 2005 was supposed to be the end of incentives, but then we suddenly got a system of tax credits (credits are better -- you keep the whole amount) put into place for vehicles purchased on January 1, 2006 or later.
All hybrids start with a credit of some amount, which gradually gets phased out in three steps. Once a manufacturer sells 60,000 hybrids, the credits for all its models drop to 50% for the next two quarters (six months). For the following two quarters, they fall to 25%. Then they disappear.
Here's how things look today:
- FORD: All credits still in full effect.
Ford Escape Hybrid: $3,000 (2WD), $2,200 (4WD)
Mercury Mariner Hybrid: $3,000 (2WD), $2,200 (4WD)
Mazda Tribute Hybrid: $3,000 (2WD), $2,200 (4WD) - GM: All credits still in full effect.
Chevrolet Malibu Hybrid: $1,300
Chevrolet Tahoe Hybrid: $2,200
GMC Yukon Hybrid: $2,200
Saturn Aura Green Line: $1,300 - HONDA: The phasing out has begun. Cars purchased in the first half of the year get 50%. The second half, 25%.
Honda Civic Hybrid: $850 (Jan-Jun 2008), $425 (Jul-Dec 2008) - NISSAN: All credits still in full effect.
Nissan Altima Hybrid: $2,350 - TOYOTA: Sorry folks, Toyotas go fast. All credits ran out last year.
Toyota Prius: $0
Toyota Camry Hybrid: $0
Toyota Highlander Hybrid: $0
Lexus RX400h: $0
Lexus GS450h: $0
Lexus LS600h: $0
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Brian Sy is a featured contributor for vLane.
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