Many governments offer ahybrid tax creditorhybrid tax rebateas a financial incentive for consumers to purchase ahybrid vehicle.
Canada
editResidents in Ontario[1](until July 1, 2010 when the HST takes effect, ending the previous PST rebate) and Quebec,[2]Canada can claim a rebate on the Provincial Retail Sales Tax of up toCA$2,000on the purchase or lease of a hybrid vehicle, and Federal Transport Canada can claim a rebate ofCA$1,500.[3]
United States
editThe U.S.Energy Policy Act of 2005established a federal incometax creditof up to $3,400 for the purchase of newhybrid vehicles,purchased or placed into service after December 31, 2005.[4][5]Vehicles purchased after December 31, 2010 are not eligible for this credit.[4][5]The law limited the tax credits to the first 60,000 eligible vehicles per carmaker, meaning that credits for popular models will be phase out before the tax break's scheduled expiration date. Note these are credits — dollar for dollar tax savings — not merely deductions. The tax credit is to be phased out two calendar quarters after the manufacturer reaches 60,000 new cars sold in the following manner: it will be reduced to 50% if delivered in either the third or fourth quarter after the threshold is reached, to 25% in the fifth and sixth quarters, and 0% thereafter.[4][6]TheInternal Revenue Serviceis responsible for certifying that certain passenger autos and light trucks qualify for the credit and the amount of the credit.[6]
See also
editReferences
edit- ^Vehicles Powered by Alternative FuelsArchived2008-08-07 at theWayback Machine,Government of Ontario, accessed as of June 2, 2008
- ^QST rebate for hybrid vehiclesArchived2009-03-28 at theWayback Machine,Government of Quebec, accessed as of August 21, 2008
- ^2008 Model Year ecoAUTO Eligibility,Transport Canada, accessed as of June 2, 2008
- ^abc"New Energy Tax Credits for Hybrids".FuelEconomy.gov.Retrieved2010-06-05.
- ^abJeff Wysaski (2010-04-15)."Hybrid Tax Credits for 2010 New Cars".Autotropolis. Archived fromthe originalon 2010-06-25.Retrieved2010-06-05.
- ^ab"Summary of the Credit for Qualified Hybrid Vehicles".Internal Revenue Service.2010-06-05. Archived fromthe originalon 2012-03-24.