What exactly is a Hybrid Car Tax Credit? It’s a specific dollar amount that is subtracted directly from the total amount of your federal tax owed, and it reduces your tax obligation. The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006.

The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.

Cost incentives also vary state-by-state, so it’s a good idea to check your state’s hybrid incentives.

The following models have been certified for current tax credit:

2008 Hybrid Models & 2008 Tax Credits

* Chevrolet Malibu Hybrid — $1,300
* Ford Escape 2WD Hybrid — $3,000
* Ford Escape 4WD Hybrid — $2,200
* Honda Civic Hybrid — $525 (phasing out to $0 by end of 2008)
* Mazda Tribute 2WD Hybrid — $3,000
* Mazda Tribute 4WD Hybrid — $2,200
* Mercury Mariner 2WD Hybrid — $3,000
* Mercury Mariner 4WD Hybrid — $2,200
* Nissan Altima Hybrid — $2,350
* Saturn Aura Hybrid — $1,300

Hybrid Car Tax Credit Shock

Check out all information and paper work necessary so that you not get a shock when you dont get the Hybrid Car Tax Credit as you may have expected.

**The Type of Hybrid Car you purchased

You should already know that if you bought a Toyota or Lexus hybrid after Oct. 1, 2007, it isn’t eligible for a tax credit. Toyota sold more than 60,000 hybrid vehicles in the United States that were eligible for the full credit by the summer of 2006, so the government began phasing out tax incentives for the company’s hybrids beginning in the fall of that year. By the fall of 2007, the credits were gone.

** How Close you come to having to pay the Alternative Minimum Tax (AMT)?

If you bought a fully credit-eligible hybrid though, you still might still get a much smaller credit than you were expecting. Or none at all.

It has nothing to do with how many hybrid vehicles the carmaker sold. Qualifying for the credit - and how much of it you can take - depends on how close you come to having to pay the Alternative Minimum Tax.

The AMT sets a minimum amount of tax you must pay even if you have deductions that are eligble to allow you to pay less.

The AMT disallows a lot of common deductions that are allowed under the regular code. If the AMT amount is higher, you must pay the AMT.

Here is how it works:

(1) If you tax bill is greater under the AMT than it is under the regular code, so you must pay the AMT an you get no hybrid tax credit.

(2) If your regular taxes, on the other hand, are $3,500 more than what you have to pay under the AMT, and you bought a hybrid car with $3,000 tax credit, you get the full 3,000 tax credit.

(3) However, if your regular taxes, are $1,200 more than what you have to pay under the AMT, and you bought a hybrid car with $3,000 tax credit, you get the tax credit of just $1,800.

Related posts

• Myths about Hybrid Cars (0)
• How Do Hybrid Cars Work? (0)
• Disadvantages of Hybrid Cars (0)
• Best Hybrid Car (0)
• How Hybrid Car Battery Work? (0)

The disadvantages of hybrid cars are often less known compared to the advantages of the hybrid cars.

Hybrid cars are often referred to as the ‘car of the era’. Hybrid cars do not ONLY benefits their owners, they also attribute benefits to the entire society and the mankind. The advantages of the hybrid car are multifaceted since it attributes economical, technical and economical benefits. Countries’ economy benefit from the gasoline savings as the oil prices are steeping very high. Benefits to Consumers are listed here.

What are the disadvantages of Hybrid Cars?

1. Cost

Hybrid Cars are generally more expensive than their gasoline-only counterparts.

However this is easily overcome. The savings on fuel consumption and additional saving on tax credits can immediately offset the high initial cost outlay.

Cost of hybrid cars are also steadily reducing as this technology on which hybrid cars operate matures.

2. High cost of maintenance

Service, parts and maintenance can be one of the disadvantages of hybrid cars. Who will fix your hybrid cars? Do you have to take it back to your dealer or to an expensive specialty shop?

Firstly, the cost of maintaining hybrid cars is no higher than for gasoline-only vehicles. There’s less wear on the engine and brakes, so the cars are predicted to require less repair over the life of the vehicle.

Secondly, most of the components of a hybrid vehicle are the same as a gasoline-only car, so independent mechanics are able to do most of the work on hybrids. As these cars are becoming more popular, many mechanics are also attending classes on hybrid technology.

3. Acceleration

Hybrid cars are generally slower than their gasoline counterparts. However this can be seen as an advantage as it means the driver can have a better control of his steering.

4. Not all hybrid cars are built alike

Not all hybrid cars provide phenomenal gas mileage. Some hybrid models can only provide a 20% to 30% fuel efficiency increase over the non-hybrid models. Some all-gasoline compact cars with manual transmissions are rated for higher fuel transmissions than some hybrid models.

This disadvantage can be easily overcome with careful research and choosing the right hybrid models.

5. It is risky when a hybrid car is involved in an accident

Because hybrid car stores high amount of voltage in its batteries, there is a high chance of getting electrocuted when it is involved in an accident. It is also relatively difficult for rescuers to get the drivers and passengers out of the car because of the dangers of high voltage.

That’s why the National Alternative Fuels Training Consortium has developed a curriculum and training program for First Responders to safely identify and deal with hybrid-electric vehicles. The NAFTC course offers hands-on, vehicle-specific training covering how to safely disconnect the high voltage power supply, how to deal with possible ruptured battery packs and how to safely extract drivers and passengers trapped inside these vehicles. The training is offered through a network of 33 National Training Centers located at community colleges, tech schools and Universities nationwide.

If you’re calling 9-1-1 about an accident and think a hybrid is involved, the safe move is to stay back, identify the vehicle as a hybrid and let the first responder know so they can be better prepared when they arrive.

Now that the disadvantages of the hybrid cars have been identified, car manufacturers are looking for ways to get rid of the disadvantages. In the future you will be able to find hybrid cars with all the disadvantages and the safety concerns addressed. Until then, you can neutralize the disadvantages of hybrid cars with careful planning and research.

Related posts

• Myths about Hybrid Cars (0)
• How Do Hybrid Cars Work? (0)
• Best Hybrid Car (0)
• Hybrid Car Tax Credit (0)
• Advantages of Hybrid Cars (0)

Like any new technology, there are always confusion and misinformation - myths about Hybrid Cars. Five years ago, hybrids are still unknown commodities, today there are hundreds of thousands on American driveways. Most industry analysts predict an estimates ranging from 600,000 to 800,000 hybrid sales in the United States by 2010.

Let’s learn what is ….. and is not …. true about these new vehicles powered by a combination of gasoline and electricity.

Myth #1: Hybrid cars need to be plugged in

This is a myth that has resulted from confusion of hybrod cars with electric cars.

The electric cars indeed rely on an external plug for their power, and their range is therefore limited. Hybrid cars, however, use a mechanism known as ‘regenerative braking’ to charge their batteries — essentially transforming the car’s deceleration into electrical energy that is then stored in the battery.

Myth #2: Hybrid cars lack power

Because the first-generation hybrid cars were designed to get superior gas mileage (60 miles to the gallon), they were a little slow out of the gate. But today’s hybrid cars are both fast and powerful.

Newer hybrids are just as powerful as they are fast. the 2008 Ford Escape Hybrid can accelerate with almost the same V-6-like power as its gas-powered sibling, and the 2008 Lexus GS 450h can go from 0-100km/hr in just 5.2 seconds.

Of course, all other things being equal, more power generally translates into poorer fuel economy.

Myth #3: All hybrid cars have great fuel efficiency

It’s true that all hybrid cars are more fuel-efficient than their gasoline-only counterparts.

However, the fuel efficiency of a hybrid car is largely dependent on the type of driving you do. Because hybrids generate electrical power through braking (see above) and save power by switching off the gas engine when they come to a stop, they get better mileage in the city than they do on the highway. If you intend to do a lot of long distance highway driving, a hybrid may in fact provide very lower fuel efficiency.

Myth #4: Hybrid cars cost more to maintain

The cost of maintaining hybrid cars is no higher than for gasoline-only vehicles. There’s less wear on the engine and brakes, so the cars are predicted to require less repair over the life of the vehicle. Hybrid cars still need oil changes and tire rotations, but they don’t need them any more frequently than other cars.

People shopping for hybrids are sometimes concerned that because hybrid technology is new, they will only be able to get their hybrid cars serviced at an expensive dealership. Most of the components of a hybrid vehicle are the same as a gasoline-only car, so independent mechanics are able to do most of the work on hybrids. As these cars are becoming more popular, many mechanics are also attending classes on hybrid technology.

Myth #5: Hybrid cars have a short lifespan and are expensive to replace

It’s true that the nickel-metal batteries in hybrid cars cost a lot ( at least a few thousand dollars)to replace, however, the manufacturers offer warranties of 8-10 years or 160,000 km, so you should not have to worry about replacing the batteries.

Since there aren’t yet many hybrids on the road that have hit those lengthy milestones, it’s difficult to ascertain how long hybrid batteries will actually last. Anecdotally, however, a cab driver in Vancouver drove his Toyota Prius 320,000 km in 25 months, and his car’s batteries remained strong.

Myth #6: Hybrid cars are expensive

It’s true that the initial purchase price of hybrid cars are more costly than similar models powered only by gas. However there are some important savings to consider: “clean fuel” federal tax deduction; the ever rising cost of gasoline etc..

Let us do some quick math comparing the economics of a 2008 Toyota Camry hybrid, its gas-only basic counterpart, and a 2008 Toyota Prius. The Toyota Camry Hybrid costs $32,000 with a fuel efficiency of 5.7 l/100km (50 mpg) and annual fuel cost of $1140. The Toyota Camry LE (gas-only) costs $25,900 with a fuel efficiency of 8.0 l/100km (35 mpg) and annual fuel cost of $1600. A Toyota Prius costs $29,500 with a fuel efficiency of 4.1 /100km (57 mpg) and annual fuel cost of $820. (The fuel costs are based on 20,000 km (12,427.42 miles) per year at $1 per litre/ $2.18 per gallon.)

According to the above numbers, it would take 10 years of driving (200,000 km) to recoup the initial price difference between a Camry Hybrid and Camry LE, but only two years (40,000km) to recoup the price difference between a Toyota Prius and a Camry LE (excluding increased interest charges). If gas prices continue to rise, the payback time decreases. Likewise, the higher gas prices climb, the higher the resale value of a hybrid – already considerably more than that of a gas-only vehicle. The upshot? If you’re in the market for a new car anyway, a hybrid might well make economic sense.

If you are having a tough time separating hybrid truth from reality, you’re not alone. I hope the above help to debunk your Myths about Hybrid Cars.

Related posts

• How Do Hybrid Cars Work? (0)
• Disadvantages of Hybrid Cars (0)
• Best Hybrid Car (0)
• Hybrid Car Tax Credit (0)
• How Hybrid Car Battery Work? (0)