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Hybrid Car Tax Credit Breakdown by Model - Chart Shows What Cars will Save You Most

January 25th 2006

Hybrid Car Tax Credit Breakdown by Model - Chart Shows What Cars will Save You Most

Toyota Prius

With gas prices and insurance costs on the rise, many Americans are looking for ways to save money. Credit cards minimum payments have doubled and credit card interest rates are on the rise adding to the burden.  There is a lot of talk about the hybrid car tax credit, but can these cars really save you money?

Some buyers have complained that the cars do not get the mileage that the sticker claims.  These mileage numbers are calculated by the Environmental Protection Agency (EPA) using a standard dynometer (dyno) test. Recently Consumer Reports found that all cars may not get the mileage claimed on the sticker.  Most drivers use their air conditioner and heater and may travel up and down hills.

Hybrids will give you better gas mileage than standard non-hybrids in the same class.  Power is conserved in the breaking system and new drive-train technology has added to their efficiency. 

 

Not all hybrids are the same.  Some hybrids are designed for fuel efficiency, and others are designed with the primary goal of lowering emissions.  Recent legislation enacted to offer tax credits had fuel efficiency as a primary concern. 

You will save the most money if you have a long commute or you do a lot of driving.  If you save just $5 per day on gasoline going to and from work, that equates to $1250 saved per year.  As gas prices rise you will likely save even more money compared to a non-hybrid. 

 

The calculation for the tax credit compares the hybrid carís fuel efficiency with the fuel efficiency of non-hybrids in the same class.  The car manufacturers have been scrambling to figure out exactly how much you will save.  Not all hybrids will be eligible for a tax credit so check with your tax preparer and dealer before you decide.

 

Here is a list of cars and what you can expect to get back on your taxes according to the American Council for an Energy-Efficient Economy Website:

Manufacturer Hybrid Model Expected Tax Credit ($)
Chevrolet / GMC Silverado/Sierra (2WD) 250
Chevrolet / GMC Silverado/Sierra (4WD) 650
Ford Escape (2WD) 2,600
Ford Escape (4WD) 1,050
Honda Accord 650
Honda Civic GX 3,600
Honda Civic (automatic transmission) 2,100
Honda Civic (manual transmission) 1,700
Honda Insight (automatic ONLY) 1,450
Lexus RX 400h 2,200
Toyota Highlander (2WD) 2,600
Toyota Highlander (4WD) 2,200
Toyota Prius 3,150

Always check with your tax advisor and don't just assume the numbers above are what you will get.  The Federal government has not issued final credit numbers and these numbers are what the car manufacturers have come up with so far.  According to the ACEEE website some manufacturers did not even qualify for the rebate including Jeep and Volkswagen. 

 
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By Dan Wilson
Best Syndication Staff Writer

Hybrid Cars

Keywords and misspellings: hibrid car electric pryus acord


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Copyright 2005 Best Syndication                                            Last Updated Saturday, July 10, 2010 09:51 PM