Do all hybrid cars qualify for tax credits?
Most gas-electric hybrid cars qualified for federal income tax credits for a few years, but as 2010 ran down, so did the credits. Starting in 2011, only the hybrids that use plug-in electrical outlets to charge their batteries will get credits. The Energy Policy Act of 2005 made tax credits available for lessees or buyers of new gas-electric hybrid vehicles for the first time. (Tax credits reduce the amount of tax owed, while deductions lower your taxable income.) The tax credits for hybrid cars took effect in January 2006. The maximum credit for most hybrids was $3,400. The idea was to encourage people to buy energy-efficient hybrids even though they were more expensive than comparable gas-only vehicles. The credits phased out after a manufacturer sold 60,000 of a hybrid model. All credits end with purchases made by the end of 2010. Here’s how it works. Let’s say 60,000 of a hybrid model had been sold by June 30, 2006. Anyone buying one of those hybrids through the next calendar quart
