Hybrid Cars - The Incentives
Want a Hybrid? Don't Forget the Incentives!
By Matthew Keegan
The lowest gas prices in five years has taken the sting out of filling up, but very few people believe that current price levels will be sustained. In all likelihood as we move closer to summer, demand will increase and prices with it as supply is cut back to meet current consumption. Add in that our current political leadership is eager to raise taxes on gasoline to encourage you to drive more economical cars and you could end up with gas priced above three dollars a gallon.
One way that consumers are battling the high cost of a fill up is to choose a hybrid vehicle. Powered by a combination of a battery and a gas engine, most hybrids deliver exceptional fuel economy while reducing the amount of exhaust fumes down to a minimum. Many of the hybrid models on the market in 2009 deliver fuel economy above forty miles to the gallon, well higher than what most gasoline powered cars offer.
But there is a huge drawback to most hybrid vehicles which makes this type of purchase an unprofitable one for most buyers: they carry a price premium that may never be fully recovered. True, if you drive twenty thousand miles or more annually, plan on keeping your car for at least ten years, and gas prices return to higher levels, you may recoup your costs. But, that five to ten thousand dollar price premium can be a bit hard to swallow, a problem for cash strapped consumers.
There is one way that consumers can still buy a hybrid vehicle without busting their budget: federal tax credits. It is a convoluted system where buyers can get a credit of as much as $3400 per vehicle provided that the manufacturer hasn't sold its allotment of 60,000 hybrids. The Internal Revenue Service (IRS), beginning on January 1, 2006, has allowed buyers of select hybrid and lean-burn engine vehicles to obtain a credit, but that credit is phased out as manufacturers draw closer to their 60,000 vehicle limit. Once the limit has been reached, then no credit is available.
Thus, if you are planning to buy a 2009 Toyota Prius, your credit is now $0 because Toyota has far surpassed that threshold. On the other hand, if you plan to purchase a 2010 Ford Fusion Hybrid (available Spring 2009) you'll be eligible for the full $3400 because it is an all new model for Ford. Oh, by the way, that $3400 figure is for the most fuel efficient hybrids; some vehicles have a lower credit - for example the 2009 Saturn Aura Hybrid credit is $1550 - because it isn't as fuel efficient as the Ford.
Some states and municipalities offer credits too. If you reside in an area where relief is offered, you can usually take that additional credit to help you save more money. Log on to your state's website and do a search for "alternative fuel vehicle" to see if a program is currently available and what requirements are in place in order to receive a tax credit or rebate.
Oh, by the way, it is IRS Form 8910 - Alternative Motor Vehicle Credit - which will help you determine if your vehicle is eligible and at what cost. A good tax program will walk you through filling out the form.
Driving a gas-electric hybrid is a desirable option for some drivers. Find out what assistance is available to you may be able to shave thousands of dollars off of the cost of owning one of the most fuel efficient vehicles on the road.
Matthew C. Keegan is a freelance writer who resides in North Carolina. Matt is a contributing writer for Andy's Auto Sport an aftermarket supplier of quality parts including Mitsubishi Evolution camshafts and Ford F250 roll pans.
Article Source: http://EzineArticles.com/?expert=Matthew_Keegan
http://EzineArticles.com/?Want-a-Hybrid?-Dont-Forget-the-Incentives!&id=1938942
Hybrid Cars
By Matthew Keegan
The lowest gas prices in five years has taken the sting out of filling up, but very few people believe that current price levels will be sustained. In all likelihood as we move closer to summer, demand will increase and prices with it as supply is cut back to meet current consumption. Add in that our current political leadership is eager to raise taxes on gasoline to encourage you to drive more economical cars and you could end up with gas priced above three dollars a gallon.
One way that consumers are battling the high cost of a fill up is to choose a hybrid vehicle. Powered by a combination of a battery and a gas engine, most hybrids deliver exceptional fuel economy while reducing the amount of exhaust fumes down to a minimum. Many of the hybrid models on the market in 2009 deliver fuel economy above forty miles to the gallon, well higher than what most gasoline powered cars offer.
But there is a huge drawback to most hybrid vehicles which makes this type of purchase an unprofitable one for most buyers: they carry a price premium that may never be fully recovered. True, if you drive twenty thousand miles or more annually, plan on keeping your car for at least ten years, and gas prices return to higher levels, you may recoup your costs. But, that five to ten thousand dollar price premium can be a bit hard to swallow, a problem for cash strapped consumers.
There is one way that consumers can still buy a hybrid vehicle without busting their budget: federal tax credits. It is a convoluted system where buyers can get a credit of as much as $3400 per vehicle provided that the manufacturer hasn't sold its allotment of 60,000 hybrids. The Internal Revenue Service (IRS), beginning on January 1, 2006, has allowed buyers of select hybrid and lean-burn engine vehicles to obtain a credit, but that credit is phased out as manufacturers draw closer to their 60,000 vehicle limit. Once the limit has been reached, then no credit is available.
Thus, if you are planning to buy a 2009 Toyota Prius, your credit is now $0 because Toyota has far surpassed that threshold. On the other hand, if you plan to purchase a 2010 Ford Fusion Hybrid (available Spring 2009) you'll be eligible for the full $3400 because it is an all new model for Ford. Oh, by the way, that $3400 figure is for the most fuel efficient hybrids; some vehicles have a lower credit - for example the 2009 Saturn Aura Hybrid credit is $1550 - because it isn't as fuel efficient as the Ford.
Some states and municipalities offer credits too. If you reside in an area where relief is offered, you can usually take that additional credit to help you save more money. Log on to your state's website and do a search for "alternative fuel vehicle" to see if a program is currently available and what requirements are in place in order to receive a tax credit or rebate.
Oh, by the way, it is IRS Form 8910 - Alternative Motor Vehicle Credit - which will help you determine if your vehicle is eligible and at what cost. A good tax program will walk you through filling out the form.
Driving a gas-electric hybrid is a desirable option for some drivers. Find out what assistance is available to you may be able to shave thousands of dollars off of the cost of owning one of the most fuel efficient vehicles on the road.
Matthew C. Keegan is a freelance writer who resides in North Carolina. Matt is a contributing writer for Andy's Auto Sport an aftermarket supplier of quality parts including Mitsubishi Evolution camshafts and Ford F250 roll pans.
Article Source: http://EzineArticles.com/?expert=Matthew_Keegan
http://EzineArticles.com/?Want-a-Hybrid?-Dont-Forget-the-Incentives!&id=1938942
Hybrid Cars
Labels: autos, cars, Ford Fusion Hybrid, hybrid car, IRS, Saturn AURA, tax credit, toyota prius
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