Hybrid cars
Learn about gasoline-electric hybrid vehicles that use both gasoline powered internal combustion engines and electric motors
US Tax Credits on Hybrid Cars
The purchase of hybrid electric cars qualifies for a federal income tax credit up to $3,400 on the purchaser's Federal income taxes.
The tax credit is to be phased out two calendar quarters after the manufacturer reaches 60,000 new cars sold in the following manner: it will be reduced to 50% ($1700) if delivered in either the third or fourth quarter after the threshold is reached, to 25% ($850) in the fifth and sixth quarters, and 0% thereafter.
This means that Toyota Prius tax benefits are rapidly disappearing.
Many states give additional tax credits to hybrid electric car buyers.
The tax credit is to be phased out two calendar quarters after the manufacturer reaches 60,000 new cars sold in the following manner: it will be reduced to 50% ($1700) if delivered in either the third or fourth quarter after the threshold is reached, to 25% ($850) in the fifth and sixth quarters, and 0% thereafter.
This means that Toyota Prius tax benefits are rapidly disappearing.
Many states give additional tax credits to hybrid electric car buyers.
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