Prime Rate Credit

I’ve been thinking that my next car might really be a hybrid car. I’m not sure which one I want, whether it would be the Toyota Prius or one of the new hybrid SUV’s by Ford, or maybe even the Honda hybrid, but with all the benefits of the Hybrid cars, including their environmental consciousness, gas savings and now also the tax break that the federal governement is offering as an incentive to purchase one of these cars that are catching on like wildfire.

What’s the tax break deduction for hybrid cars?

Apparently there are exact credit amounts now determined for Fords and Toyotas, but some of the other makes and models are still awaiting a decision on what kind of tax breaks they will get by the feds.

They are actual dollar tax credits—which took effect for the new tax season of 2006 starting January 1st, 2006. It used to be just a reduction of taxable income, whereas now reportedly it is an actual credit - like you’d get for having a child almost, so obviously the federal government is trying to make the purchase and use of hybrid vehicles more appealing for the every day joe, so these cars make us less reliant on oil and gas? Maybe, I guess that’s just speculation on my part, but it seems logical.

The IRS will publish expected credits for other makers besides Ford and Toyota fairly soon as well.