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Why You Should Buy a Hybrid Car Now

by Terrence O'Brien on September 5, 2007 at 12:02 PM


Outside of the environmental and fuel efficiency bonuses, one of the reasons to buy hybrid vehicles like the Toyota Prius is the hefty tax credits one gets. Those tax credits, at least for Toyota hybrids, are about to expire.

Here's how it works: The hybrid tax credits begin a phase out process after a manufacturer sells 60,000 vehicles. The credits drop 50 percent after the 60,000 milestone is met. Six months later, the credits drop to 25 percent of the original figure, and, after six more months, they expire for good. Credits on Lexus and Toyota hybrids are set to expire on September 30th. Next on the credit chopping block is Honda, as it is widely expected to pass the 60k threshold this month.

If you can't run out and buy a Prius right now, but still want a green vehicle and a healthy tax break, you can still choose from other alternatives, but you'll need to dig a little deeper. Fuel cell, natural gas, and methanol powered vehicles all come with impressive tax credits, but vehicles that qualify for these are very hard to come by. Hybrid and alternative fuel credits are set to expire for good in 2010, and fuel cell credits will only last until 2014 unless Congress decides to extend them.

From Consumerist

Related links:

Tags: alternative fuel, AlternativeFuel, car, environment, green, hybrid, irs, lexus, prius, tax credit, TaxCredit, toyota

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