Getting A Tax Break With Your Hybrid Vehicle

Getting A Tax Break With Your Hybrid Vehicle

Getting a​ Tax Break With Your Hybrid Vehicle
Buying a​ hybrid car gives the​ phrase go green a​ whole new meaning .​
Not only is​ it​ good for the​ environment,​ it’s also good for your pocket book .​
Check out the​ tax benefits of​ hybrid vehicles for yourself.
The government has decided that encouraging drivers to​ do their part to​ protect the​ environment could be better enhanced by offering tax incentives .​
So 2018 sees a​ variety of​ incentives from tax credits to​ tax deductions .​
But before you​ get too excited,​ be sure you​ understand all the​ regulations .​
It is​ a​ bit complex and not all vehicles that call themselves hybrids actually qualify for the​ hybrid tax relief programs .​
The full on​ hybrid vehicle uses both a​ gas engine and an​ electric engine .​
The Toyota Prius is​ an​ example of​ a​ full on​ hybrid .​
However some of​ the​ other models that call themselves hybrids aren’t classified as​ such by the​ government .​
That’s because some vehicles that do no more than shut the​ engine off at​ idle wear the​ hybrid designation.
The full tax credit is​ applicable to​ only the​ first 60,​000 cars sold by the​ car maker .​
After that,​ the​ amount of​ the​ credit goes down .​
So if​ you​ want to​ be able to​ take the​ full tax credit you​ need to​ be buy early .​
Be aware that leasing doesn’t qualify for a​ tax credit .​
The new tax incentive programs are much more valuable than the​ old programs that were in​ place .​
For the​ exact amount and rules you​ need to​ contact the​ IRC,​ but ACEEE has provided the​ following estimates to​ give you​ an​ idea of​ the​ tax benefits you​ might reap.
The Toyota Prius should qualify for the​ full $3400 tax credit,​ and it’s the​ only hybrid to​ earn this honor .​
a​ $2600 credit goes to​ the​ Ford Escape 2WD,​ Honda Insight,​ and Toyota Highlander 2WD .​
a​ $2200 credit is​ available for the​ Lexus RX400H,​ Honda Civic Auto Transmission,​ and Toyota Highlander 4WD .​
a​ $1950 credit goes to​ the​ Ford Escape 4WD and Honda Civic Manual Transmission .​
The Lexus GS450H,​ Nissan Altima,​ and Toyota Camry all have a​ $1300 tax credit .​
The Honda Accord,​ GMC Sierra,​ and Chevy Silverado all get under $1000.
Remember,​ these are estimates .​
The actual numbers will have to​ be obtained from the​ IRS or​ you’ll need to​ wait until they release them .​
The basics for being able to​ take the​ credit are as​ follows: you​ must purchase the​ vehicle new on​ or​ after Jan 1,​ 2018,​ and it​ cannot be for re-sale .​
That’s pretty simple but there are some other areas that aren’t so clear so be sure you​ get the​ details on​ all the​ rules.
The tax benefits of​ hybrid vehicles are definitely improving .​
Have your accountant or​ bookkeeper find out what your personal options are and take advantage of​ any tax breaks you​ can!

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