Looking for a beefy tax credit? A new hybrid car could be your ticket to thousands of dollars off your bottom line. But the rules are tricky … what you don’t know may hurt you (in the wallet). The tax credit on hybrids is highly dependent upon the make and model of the vehicle. The US Government’s hybrid car tax credit is designed to spur the production and purchase of new fuel-efficient vehicles, by tweaking the rules of supply and demand.
The hybrid tax credits are setup so that once a date and production marks have been met, the hybrid car’s tax credits are ratcheted down until they reach zero. A brand new hybrid car’s tax credit might be as high as $3400 when it is first offered for sale – as is the case with the new 2010 Ford Fusion Hybrid and Mercury Milan Hybrid – with the goal of spurring early adopters.
If you want a new Toyota Prius, you’ll have to do without the hybrid tax rebate … as the hybrid car tax credit ran out on the Prius way back in 2007. In fact, you won’t get a tax break on any hybrid Toyotas. Honda buyers are currently out of luck, when it comes to hybrid tax incentives, as well … the tax credit for hybrid Civics ran out at the end of 2008.
The only hybrid tax breaks currently in force are on the Nissan Altima Hybrid, along with a wide range of Ford and GM vehicles.
2009 Hybrid Tax Rebates
- 2009 Cadillac Escalade Hybrid 2WD – $2,200/ 4WD – $1,800
- 2009 Chevrolet Malibu Hybrid – $1,550
- 2009 Chevrolet Silverado Hybrid – 2WD/4WD – $2,200
- 2009 Chevrolet Tahoe Hybrid 2WD / 4WD – $2,200
- 2009 GMC Sierra Hybrid 2WD / 4WD – $2,200
- 2009 GMC Yukon 1500 Hybrid 2WD / 4WD – $2,200
- 2009 Nissan Altima Hybrid – $2,350
- 2009 Saturn Aura Hybrid – $1,550
- 2009 Saturn Vue Hybrid – $1,550
- 2009 Ford Escape Hybrid 2WD – $3,000 / 4WD – $1,950
2010 Hybrid Tax Rebates
- 2010 Ford Fusion Hybrid – $3,400 (until March 31, 2009)
- 2010 Mercury Milan Hybrid – $3,400 (until March 31, 2009)