Ford Hybrid Tax Credit

By: Andy Hodges
Staff Writer
Published: Aug 12, 2009

Ford Hybrid Cars Qualify For Government Tax Credits

If you are in the market to buy a new hybrid car, there is still a Ford hybrid tax credit available on new vehicles. The credit is available on new fuel-efficient cars. These vehicles include the 2010 Fusion, Ford Escape, Mercury Milan, and the Mercury Mariner.

The auto tax credit is worth up to $850 before April 1, 2010. After that date, the IRS will no longer offer the rebates. So, make sure you buy your car before then.

The time to buy a new fuel efficient vehicle couldn't be better, and one of the best hybrid cars we test drove is the 2010 Fusion. We rated Ford's hybrid technology the best over Toyota and Honda. The Fusion is also the best fuel efficient midsize vehicle on the road today.

The tax amounts are available for 2009 and 2010 model year hybrid vehicles. If you are searching for a new hybrid SUV, you might want to check out the 2009 Escape. We also rated the SUV hybrid the highest for fuel economy.

However, if you plan to use the Escape SUV rebate, there are different amounts depending on front-wheel drive and four-wheel drive. The FWD provides a credit of $1,500. The 4WD reduces the rebate down to $975 before September 30, 2009.

New Hybrid Cars

The IRS has provided the tax credits to promote alternative energy and fuel efficiency that is usually achieved from hybrid cars. This is a way to reduce carbon emissions and air pollution in an effort to help the environment. There are new laws and additional benefits set for next year when plug-in electric cars become available.

According to the IRS, automotive tax incentives for hybrid vehicles can be filed under the new Plug-in Electric Drive Vehicle Credit if purchased after Dec. 31, 2009. To qualify, vehicles must be newly purchased, have four or more wheels, have a gross vehicle weight rating of less than 14,000 pounds, and draw propulsion using a battery with at least four kilowatt hours that can be recharged from an external source of electricity. The minimum amount of the credit for qualified plug-in electric drive vehicles are $2,500 and the credit tops out at $7,500, depending on the battery capacity.