Sunday, 5 August 2012

Car and SUV Tax Breaks for Hybrid Vehicles

You may not realize this but if you are going to buy a hybrid car, SUV or any similar vehicle you could get a whopping tax break. In fact few consumers have taken the government up on this offer, perhaps they do not realize that this was part of the Bill that President Bush recently signed?

If you buy a Honda or Toyota hybrid such as the Prius or Isight you could get a $2,000 deduction on your 2004 or 2005 tax return. Those in the 33% tax bracket that would cut your tax obligations by up to $600.00 just think about this. You can save fuel, get a cool car and save money on your taxes too; but why are people not taking the government up on this? Well, probably because many people are not even aware of it. But you must take the deduction by the end of this year as the offer from the government, as good as it is, ends on January one, 2006; which is approaching about as fast as our next named Tropical Storm.

Luckily there is a new tax credit, which starts as this deduction night falls. In 2006 the new deal is a Tax Credit, which is much better and it could be as much as $3,000 straight off your tax obligation in 2006 and it is based on the gross vehicle weight of the car or SUV that you purchase.

Unfortunately for the modern day instant gratification seeker, they may not be able to take advantage of these offers, as most Hybrids at dealers are sold out with an average of a 110 person waiting list, well at least at Toyota dealers that is. The tax deal has further complications as once the manufacturer sells over 60,000 vehicles the over a one-year period the credit will be cut to 50% and then to 75%. This provides incentives for auto manufacturers to continually innovate and come up with new models and more gasoline saving features.

So if you are in the market for a Gas savings hybrid, then now could be a good time, if not get on the waiting list and get ready of 2006, so you can save in more ways than one. Think on this, think of yourself in a technologically advanced futuristic hybrid vehicle.

No comments:

Post a Comment