Hybrid Tax Credits Declining - IRS Cut Credits for Most Popular Models
The Internal Revenue Service (IRS) boosted hybrid car sales significantly by providing tax credit to buyers last few years. But recently IRS announced some cut on tax credit for some popular models.
First is the most popular Toyota Prius. After reviewing Toyota's 2007 first quarter sales, the IRS has ruled that Prius buyers may continue to claim only a small tax credit. The total amount of the credit now available to a Prius buyer is only $787.50.
At the same time, the IRS announced that purchasers of qualified General Motors Corp. hybrid vehicles may claim a tax credit ranging from $250 to $1,300.
GMC Sierra hybrid trucks and Chevrolet Silverado hybrids carry a tax credit of $250 for two wheel drive models and $650 for four wheel drive models.
The Saturn Vue Green Line has a $650 credit and the Aura Hybrid carries a $1,300 credit.
Tax credits are also available for Nissan hybrids. The allowable credit amount for the 2007 Altima Hybrid which is Nissan's only certified hybrid vehicle is $2,350. However, this is usually for new car purchases, so if you purchase a Nissan hybrid from a used Peoria Nissan dealership, there is a good chance you won't be able to get a tax credit.
If you are planning to buy Hybrid you may want to buy early because the full credit will only available for a limited time. Credits are still available for the following vehicles in 2007:
- Ford Escape Hybrid 2WD ($2,600)
- Ford Escape Hybrid 4WD ($1,950)
- Honda Accord Hybrid AT ( $1,300)
- Honda Accord Hybrid Navi AT ($1,300)
- Honda Civic GX ($4,000)
- Honda Civic Hybrid CVT ($2,100)
- Lexus GS 450h ( $775)
- Lexus RX 400h 2WD and 4WD ($1,100)
- Mercury Mariner 4WD Hybrid ($1,950)
- Toyota Camry Hybrid ($1,300)
- Toyota Highlander Hybrid 2WD and 4WD ($1,300)