Hybrid Rebates

Hybrid Electric Vehicles (HEVs) are all the rage ever since the powers that be decided America needs to become independent of foreign oil. Each auto manufacturer implements this new technology differently but all of them manage to combine the best features of both the internal combustion engine and the electric motor. They managed to do this without losing noticeable power and performance. It’s no wonder that these vehicles are leading their respective classes in fuel economy.

All of these new vehicles use a small gasoline engine and an onboard electric motor to power the vehicle. The electric motor runs the car at low speeds and while backing up. In fact some of them actually shut sown the gasoline engine when the vehicle is stopped and then restart it after the electric motor has the vehicle moving again. The battery is charged in two very different ways. The first is the conventional method using an alternator when the gasoline engine is running. The second is called regenerative braking. The technology captures the energy normally wasted while the car is decelerating and used it to recharge the battery and power accessory items.

2006 Hybrid Tax Credit

Congress passed a new law that will give tax credits to people who purchase hybrid vehicles and put them into service after December 31, 2005. A tax credit is subtracted from the income tax you owe after everything else is deducted.

The table below shows the estimated tax credits available on each model according the American Council for an Energy Efficient Economy (ACEEE)

Make	Model	Rebate
Ford	Escape Hybrid (2wd) Escape Hybrid (4wd)	$1,950 $2,600
Honda	Accord Hybrid Civic Hybrid (manual) Insight (auto)	$650 $1,700 $2,600
Lexus	RX400h GS450h**	$2,200 $1,300
Nissan	Altima**	$1,300
Toyota	Prius Highlander Hybrid (2wd) Highlander Hybrid (4wd) Camry**	$3,150 $2,600 $2,200 $1,300
Chevrolet/GMC	Silverado/Sierra Silverado/Sierra	$250 $250
Mercury	Mariner Hybrid	$1,950

** Models are due out in 2006

However, hybrids placed in service before December 31, 2005 cannot claim the new tax credit but may be eligible for the $2,000 income tax deduction.

State Rebates

Several states are also offering rebates for hybrids as well. State rebates are on top of the federal government or any other available tax credits or rebates. The table below lists some of the available rebates.

Granting Agency	Requirements
Federal Government	All hybrid vehicles are eligible for up to $2,000 based on year purchased
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
Maine	All hybrid vehicles are eligible for up to $500, depending on the model purchased
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
New York	vehicles that use an internal combustion engine plus an energy storage device are eligible for a tax credit up to $2,000
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

Insurance Discounts

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?