Hybrid cars do have several government incentives such as tax credits and benefits. While some of the tax credits have expired, some were extended while new laws provide hybrid car owners with additional benefits.
Hybrid cars are all about alternative energy and fuel efficiency, and the government is using these cars to promote new incentives to reduce carbon emissions. There are new laws for plug-in electric drive vehicles which can offer car owners a credit of up to $7,500. Moreover, just because one tax credit expired during the calendar year, doesn’t mean it won’t be available for next year.
According to the IRS, the new Plug-in Electric Drive Vehicle Credit modifies the credit for qualified plug-in electric drive vehicles 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 is $2,500 and the credit tops out at $7,500, depending on the battery capacity.
There is also another law, which almost the same thing, known as the Plug-In Electric Vehicle Credit. This creates a special tax credit for certain low-speed electric vehicles (including those with two and three wheels). The amount of the credit is 10 percent of the cost of the vehicle, up to a maximum credit of $2,500 for purchases made after Feb. 17, 2009, and before Jan. 1, 2012.
To qualify for the Plug-in Electric Vehicle Credit, a vehicle must be either a low speed vehicle propelled by an electric motor that draws electricity from a battery with a capacity of 4 kilowatt hours or more or be a two- or three-wheeled vehicle propelled by an electric motor that draws electricity from a battery with the capacity of 2.5 kilowatt hours. The IRS says that a taxpayer may not claim this credit if the plug-in electric drive vehicle credit is allowable, meaning you can’t use two credits.
There is also a Conversion Kits law for plug-in electric drive conversion kits. The credit is equal to 10 percent of the cost of converting a vehicle to a qualified plug-in electric drive motor vehicle and placed in service after Feb. 17, 2009. The maximum amount of the credit is $4,000. The credit does not apply to conversions made after Dec. 31, 2011.
Hybrid Incentives Provide Money For Eco-Friendly Drivers
What better way to drive a hybrid car knowing you’re saving gas and promoting zero carbon emissions. However, the tax credits are growing. The tax credits could also be used to service your hybrid vehicle.