Tax Break on Honda Hybrids Falling Soon
I have long been aware of the Federal tax credit available to purchasers of hybrid vehicles ... but I didn't realize that the IRS has a plan for the phase-out of those credits. Apparently, after an auto maker sells 60,000 units of any hybrid model that qualifies for the tax break, the credits begin to evaporate for future buyers.
Honda Motor Company has sold more than 60,000 hybrid vehicles that qualify for the federal tax credit, so the tax credits for the automaker's hybrid vehicles will be cut in half as of January 1st, 2008.
Toyota - due to success with the Prius - is even further down the road to zero federal tax relief. Tax credits on Toyota hybrids end on October 1st.
While this policy will surely help other manufacturers catch up to Toyota and Honda, it seems less helpful to us consumers. Shouldn't we get the tax break and the model we want? Or am I being unrealistic here?
Either way, for prospective hybrid buyers, you should be aware of the federal policy with respect to tax credits, so visit the IRS website or do some more digging before you hit the dealerships.
