8/20/2005

Tax credit worth up to $3,400 adds incentive to buying hybrid - Yahoo! News

WASHINGTON - Drivers who are seeking to beat rising gas prices by buying hybrid vehicles could save more money if they're patient.

Starting in 2006, people who buy or lease hybrid vehicles - cars or sport utility vehicles powered by both gasoline and electric engines - can get tax credits of up to $3,400. The credit is a dollar-for-dollar reduction in what you owe in income taxes. It's included in the energy bill that
President Bush signed into law Aug. 8.

Not all hybrids have been approved for the credit, and how much you'll get back depends on the efficiency of the car and when you buy it. In addition, a cap on how many hybrid purchases qualify and waiting lists for some hybrids mean you'll have to act fast.

Here's how it works. The Internal Revenue Service has approved seven hybrid vehicles for the tax credit: the Ford Escape, Toyota Highlander, Honda Accord, Honda Civic, Honda Insight, Lexus RX400h and Toyota Prius.

Tax credit worth up to $3,400 adds incentive to buying hybrid - Yahoo! News

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