How much of a tax incentive can I get for buying a new hybrid vehicle? What hybrid vehicles are eligible?
According to the website, www.fueleconomy.gov, the following vehicles have a federal tax credit up to $2000 when purchased in 2005: Ford Escape Hybrid, Honda Accord Hybrid, Honda Civic Hybrid, Honda Insight, and the Toyota Prius. The IRS may approve other hybrid vehicles as they are introduced into the market. The current legislation states that the tax credit will reduce to $500 in 2006 and will become obsolete in 2007. However, keep an eye on Congress because the tax incentives could change.
