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Hybrid Vehicle Incentives
Government Incentives for Hybrid Car Buyers
It's never been a better time to buy a Hybrid Car. Why? Because if you do, the US governement have recognized the need to cut down on the pollution we all omit into the air and have provided an incentive to those people who are thinking of buying a Hybrid Car.
So what are these incentives?
Amount Allowed for Hybrid Tax Credit
The hybrid car tax credit is only for hybrids purchased after December 31, 2005. Any hybrid purchased before that is only eligible for the clean burning fuel tax deduction (up to $2000).
Clean Burning Fuel Tax Deduction
The clean-burning fuel deduction is a federal tax deduction up to $2,000 for taxpayers for hybrid vehicles first put into service in 2004 and 2005. The deduction decreases to $500 for hybrid cars placed into service in 2006 and there is no deduction for subsequent years. This is a one time deduction and must be taken in the year that the hybrid car is originally used.
Cars eligible for the Clean Burning Fuel Tax Deduction:
- 2005-2006 Ford Escape Hybrid
- 2000-2006 Honda Insight
- 2003-2006 Honda Civic Hybrid
- 2005-2006 Honda Accord Hybrid
- 2001-2005-2006 Toyota Prius
- 2006 Toyota Highlander Hybrid
- 2006 Lexus RX 400h
- 2006 Mercury Mariner Hybrid
IRS Links:
Hybrid Car Tax Credit
These amounts are the exact amounts given by the IRS and here.
- 2005-2007 Ford Escape Hybrid Front WD $2,600
- 2005-2007 Ford Escape Hybrid 4 WD $1,950
- 2005 Honda Accord Hybrid $650.00
- 2006 Honda Accord Hybrid $1,300.00 (2006 Honda Accord Hybrid without updated control calibration qualifies for a credit amount of $650.)
- 2005 Honda Civic Hybrid (SULEV) MT $1,700.00
- 2005 Honda Civic Hybrid (SULEV) CVT $1,700.00
- 2006 Honda Civic Hybrid CVT $2,100.00
- 2005-2006 Honda Insight CVT $1,450.00
- 2007 Lexus GS 450h $1,550
- 2006-2007 Lexus RX400h 2WD $2200
- 2006-2007 Lexus RX400h 4WD $2200
- 2006-2007 Mercury Mariner Hybrid 4 WD $1,950
- 2007 Saturn VUE Green Line SUV $650
- 2007 Toyota Camry Hybrid $2,600
- 2006-2007 Toyota Highlander 4WD Hybrid $2600
- 2006-2007 Toyota Highlander 2WD Hybrid $2600
- 2005-2007 Toyota Prius $3150
**The 5-speed manual transmission Honda Insight is not eligible for the tax credit since it does not meet the emissions threshold set by the government to receive the hybrid car tax credit.
IRS Links:
http://www.irs.gov/newsroom/article/0,,id=160030,00.html
http://www.irs.gov/newsroom/article/0,,id=153397,00.html
http://www.irs.gov/newsroom/article/0,,id=107766,00.html
http://www.irs.gov/newsroom/article/0,,id=157557,00.html
http://www.irs.gov/newsroom/article/0,,id=161076,00.html
http://www.irs.gov/newsroom/article/0,,id=167435,00.html
http://www.fueleconomy.gov/feg/tax_hybrid.shtml
Incentives vary by state. Please click the link below for your state's government website.
Corporate Incentives for Hybrid Car Buyers
Some companies allow their longstanding employees a monetary incentive for changing from gas-guzzler to Hybrid.
Do you work for any of the following companies? You may get some help towards your new Hybrid car.
- Hyperion offers their employees $5000 on the purchase of a hybrid car. The company has committed over $1 million a year toward the hybrid purchase incentive, enough for 250 of the company’s 2,500 employees to make a painless shift from gas-guzzler to gas-electric.
- Bank of America reimburses $3000 to associates who purchase a hybrid.
- Google offers it's full time US based employees $5000 towards the purchase of a vehicle with an EPA fuel economy of 45 mpg or higher and $2500 towards leased vehicles.
- Clif Bar and Co. pays $5000 to employees who switch to biodiesel or buy a hybrid.
- Integrated Archive Systems offers a $10,000 subsidy toward the purchase of a hybrid vehicle for full time employees who have been with the company at least one year.
- STMicroelectronics augments the company's monthly automobile allowance to North America-based employees who drive fuel-efficient vehicles. Vehicles with fuel consumption ratings of 39.2 mpg to 46.9 mpg receive an additional $83.34 in the monthly allowance. Vehicles with 47 mpg or higher receive an additional $166.67 per month.
- Timberland offers $3000 towards the purchase of a hybrid to employees who have been with the company at least 2 years.
- Patagonia offers $2000 to employees who purchase a hybrid or other alternative fuel vehicle.
- DLA Piper US LLP offers it's employees a $2000 reimbursment for the purchase or lease of a hybrid car.
- American Jewish Committee employees in Chicago and LA recieve bonus payments of $2500 or $1500 depending on model.
- Topics Entertainment offers it's employees who downgrade engine sizes $1000 and offers $2000 to employees who go from a V-8 to a 4 cylinder. The company offers $2000 to employees who buy a hybrid car.
- ABR Inc. pays $3.50 per day for employees who get to work by their own two feet and $1.75 for those who carpool. The company gives $1,500 to employees who purchase hybrid vehicles that are rated at more than 45 mpg.
- MOM's (My Organic Market) employees can qualify for as much as $3,000 as an incentive to purchase and continue to drive a hybrid vehicle. MOM's employees who have been with the company for more than two years are entitled to a $1000 bonus/reimbursement of their down payment on the purchase of any car that gets an average (city/highway) of 45 mpg or more. After that, they are entitled to receive an additional bonus of $1,000 at the end of each of the two years following the first bonus, if still employed at MOM’s and owning the fuel-efficient or hybrid car. An employee must work a minimum of 1,000 hours per year to qualify for the fuel-efficient/hybrid car incentive plan.
Insurance Discounts
- Travelers offers a 10 percent discount on auto insurance for hybrid owners.
- The Farmers Insurance Group offers an insurance discount to customers who own a hybrid or alternative-fuel vehicle, including gas-electric hybrids, electric only, natural gas, ethanol, methanol, and propane. The discount amount is up to 10 percent.
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