What Vehicles Qualify?
The hybrid car tax credit for alternative fuel-powered cars applies to vehicles that achieve a 25% or higher fuel efficiency rate than conventional gasoline vehicles and the car must have been purchased prior to January 1, 2006. A good resource that lists tax credits for hybrids can be found at Edmunds.com.
The amount of the tax credit depends on the model you buy. If you can afford the new Tesla Roadster at $109,000, you can get a $7,500 tax credit. In addition, some states are offering additional tax incentives on top of the federal credit. To find out if your state offers tax credits for hybrid cars, call your state's Revenue Department. The pricey Cadillac Escalade can be yours for $73,500 and comes with a $2,200 tax credit.
There are more affordable models like the Honda Civic that ranges from $12,800 to $24,000 depending on model and offers a $4,000 tax credit. The Chevrolet Silverado pick-up with a price tag of $38,000 comes with a $2,200 tax credit, and the Volkswagen Jetta models start at $23,400 and have a $1,300 tax incentive. Gone are the days where you only had one or two model options. Hybrid vehicles are being manufactured for families, truck people, and everyone in between.