Hybrid Automobile Tax Credits

In 2005 Congress enacted hybrid automobile tax credits legislation that can be very beneficial for taxpayers who purchase hybrid vehicles. The legislation took affect on January 1, 2006 and continues until December 31, 2010. You must be the original owner in order to qualify for this tax credit, and leasing a new hybrid does not qualify. Not all hybrid vehicles manufactured are available for this tax credit and when a car makers meets 60,000 quarterly number of sales of hybrid automobiles the credit is reduced.
The IRS has approved the following models for hybrid tax credit accompanied by the credit amount:

Model Year 2008
Ford Escape 2WD Hybrid — $3,000
Ford Escape 4WD Hybrid — $2,200
Mazda Tribute 2WD Hybrid — $3,000
Mazda Tribute 4WD Hybrd — $2,200
Mercury Mariner 2WD Hybrid — $3,000
Mercury Mariner 4WD Hybrid — $2,200

Model Year 2007
Chevrolet Silverado 2WD Hybrid Pickup Truck — $250
Chevrolet Silverado 4WD Hybrid Pickup Truck — $650
Ford Escape Hybrid 2WD — $2,600
Ford Escape Hybrid 4WD — $1,950
GMC Sierra 2WD Hybrid Pickup Truck — $250
GMC Sierra 4WD Hybrid Pickup Truck — $650
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
Nissan Altima Hybrid — $2,350
Saturn Aura Hybrid — $1,300
Saturn Vue Green Line — $650
Toyota Camry Hybrid — $1,300
Toyota Prius — $1,575
Toyota Highlander Hybrid 2WD and 4WD — $1,300

Model Year 2006
Chevrolet Silverado 2WD Hybrid Pickup Truck — $250
Chevrolet Silverado 4WD Hybrid Pickup Truck — $650
Ford Escape Hybrid (Front) 2WD — $2,600
Ford Escape Hybrid 4WD — $1,950
GMC Sierra 2WD Hybrid Pickup Truck — $250
GMC Sierra 4WD Hybrid Pickup Truck — $650
Honda Accord Hybrid AT w/updated calibration and Navi AT w/updated calibration — $1,300
Honda Civic GX — $4,000
Honda Civic Hybrid CVT — $2,100
Honda Insight CVT — $1,450
Lexus RX400h 2WD — $1,100
Lexus RX400h 4WD — $1,100
Mercury Mariner Hybrid 4WD — $1,950
Toyota Highlander 2WD Hybrid — $1,300
Toyota Highlander 4WD Hybrid — $1,300
Toyota Prius — $1,575

Model Year 2005
Ford Escape 2 WD Hybrid — $2,600
Ford Escape 4 WD Hybrid — $1,950
Honda Accord Hybrid AT and Navi AT — $650
Honda Civic GX — $4,000 ††
Honda Civic Hybrid MT and CVT — $1,700
Honda Insight CVT — $1,450
Toyota Prius — $1,575†

State Rebates

Granting Agency	Requirements
Colorado	All hybrid vehicles are eligible for up to $4,310 depending on the model purchased
Connecticut	All HEV's are exempt from state sales tax
Louisiana	a state tax credit of 2% of the total cost of the HEV or $1,500 whichever is less
New Mexico	Exemption to all HEVs rated at 27.5 mpg or higher are exempt from the excise tax for the original owner from July 1, 2004 through June 30, 2009
Oregon	Business Energy Tax Credit of 35% is available for system costs or equipment and is spread out over five years for: · the purchase of hybrid electric vehicles and dual-fuel autos · the cost of converting autos to operate on an alternative fuel · the cost of constructing alternative fuel refueling stations
Oregon	Up to a $1,500 Residential Tax Credit is available for the purchase of either an HEV or a dual-fuel vehicle
Pennsylvania	a $500 rebate for all new hybrid, bi-fuel, dual-fuel, or dedicated alternative fuel vehicles
South Carolina	state tax credit of 20% of the federal tax credit
Tennessee	reduces sales tax rate for hybrid vehicles to 3.5%
Utah	an income tax credit for 50% of the incremental cost ($3,000 maximum) of a clean-fuel vehicle built by an original equipment manufacturer and/or an income tax credit for 50% of the cost ($2,500 maximum) of the after-market conversion of vehicles purchased after January 1, 2001 and registered in Utah

Insurance Discounts

· Farmers Insurance Group of Companies offers a 10% discount on auto insurance for hybrid automobiles. The discount only applies to certain types of coverage and may not be available in all states
· Traveler’s Insurance is offering a 10% discount on insurance for hybrid vehicles. The discount only applies to certain types of coverage and may not be available in all states.

Summary
With all of the tax credits, rebates and other incentives to buy a new hybrid vehicle, now would be an excellent time to go out and get one. How often do you get a chance to buy a new toy and do your part to help this country break away from dependence on foreign oil? .

Looking for information about previous Hybrid Rebates? Check out our 2006 Hybrid Rebates article.