Tax Incentives for Hybrid Cars in the us
In light of recent environmental, automotive, and other scientific research, the United States government has commenced the implementation of tax-related incentives for consumers who take the initiative to purchase an environmentally-friendly hybrid car rather than a popular, comfortable, and expensive gas guzzler.
Hybrid vehicles, which boast more efficient fuel economies, have become increasingly popular, not only for their innovative designs, but for their associated federal benefits. As recently as 2005, The Federal Transportation Bill, was passed by the House and Congress to ensure that hybrid vehicle owners would receive what they called an Alternative Motor Vehicle Credit, which would be applied to reducing their total tax liability.
Current or potential hybrid owners should consider actively pursuing federal compensation in order to reduce any tax liabilities. Form 8910 on your federal income tax return will require you to answer a series of questions, including the vehicle's lifelong fuel savings and total gas mileage at filing, to ultimately determine the final amount of federal credit you will receive, applicable toward your tax liability.
Unfortunately, the bill also included an Individual Alternative Minimum Tax, which was designed to prevent individuals with a higher income and net worth to have an unfair advantage in reducing their total liabilities over already disadvantaged individuals in lower income brackets.
Other than extending the life of our planet's current supply of natural resources like oil, hybrid cars are now revolutionizing the art and strategy of incurring tax breaks among loyal, but frustrated, taxpayers. Potential beneficiaries should, however, keep in mind that this federal offer stands with limited availability. The tax incentive only applies to vehicle owners who have purchased their hybrids before 2011 and after the manufacture of more than sixty-thousand vehicles, the credit will be reduced by fifty percent.
