What federal tax incentives are available for hybrid owners?
Currently, the federal government provides a one-time, income-tax credit ranging from $250 for a two-wheel drive Chevy Silverado to $3,400 for the Ford Fusion, but the credits will be phased out as each manufacturer reaches sales of 60,000 the idea is to help get hybrids onto the nation’s roads, not to provide every hybrid buyer with a tax break. Once 60,000 sales are rung up, a one-year phase out will begin with the ensuing quarter of the calendar year; half the credit will be offered for the first two quarters, and a fourth of the credit in the final two quarters of the year. Federal tax credits for Toyota and Honda have already been phased out. Credit is still available for Ford, GM and Nissan hybrids. At the state and local levels, there’s a confounding mess of deductions and exemptions, including legislation that welcomes hybrids in high-occupancy-vehicle (or HOV) lanes. It’s all too much to go into here; check out the Environmental Protection Agency’s Fuel Economy website to find
