These days, there is a rise in new fuel-efficient hybrid car products for sale. Due to this rise the government is compelled to apply taxes. Those who are planning on buying a hybrid car should not be at a loss though. The Internal Revenue Service has already legitimized a handful of hybrid car brands and models for a tax credit. This may be a pretty good offer for those planning on buying a hybrid car, and it could be one of the best incentives initiated so far.

What Tax Credit Is

If you purchased a hybrid car on or after January 1, 2006, your purchase may be eligible for a tax credit that can amount to $400 to $3,400. The amounts vary depending on how the fuel economy goes. Conversely, the tax credit may only be temporary because it also relies on whether new hybrid cars and other cars are in demand. This suggests that tax credits could last just a short period of time whenever manufacturers arrive at a certain mark in their car sales. Apparently, hybrid car brands that aren’t as popular will not be greatly affected if the number of sales does not increase too quickly.

Models That Are Qualified

The IRS has produced a list of all hybrid cars that have the possibility of being qualified for a tax credit. This list is comprised of automobiles that are sold after January 1, 2006 as well as those payable in 2008. Relevant tax credit totals are listed in the following document:

2007 Chevrolet Silverado (2WD): $250.00 2007 Chevrolet Silverado (4WD): $650.00 2007 Ford Escape 4 WD Hybrid: $1,950 2007 Ford Escape Front WD Hybrid: $2,600 2007 GMC Sierra (2WD): $250.00 2007 GMC Sierra (4WD): $650.00 2007 Honda Accord Hybrid AT: $1,300 2007 Honda Accord Hybrid Navi AT: $1,300 2007 Honda Civic GX compressed natural gas vehicle: $4,000 2007 Honda Civic Hybrid CVT: $2,100 2007 Lexus GS 450h: $1,550 2007 Lexus RX 400h 2WD and 4WD: $2,200 2007 Mercury Mariner 4 WD Hybrid: $1,950 2007 Nissan Altima Hybrid: $2,350 2007 Saturn Aura Green Line: $1,300 2007 Saturn Vue Green Line: $650 2007 Toyota Camry Hybrid: $2,600 2007 Toyota Highlander Hybrid 2WD and 4WD: $2,600 2007 Toyota Prius: $3,150

New Cars Only

The government may offer a tax credit for hybrid cars, but limitations still apply. For instance, only hybrid cars that are new are qualified for a tax credit. When a buyer purchases a hybrid car, it must not be a used car. Furthermore, hybrid cars that have been purchased by the buyer cannot be sold again. You must buy a hybrid car only for personal or business use, and not for any other purpose.

The thing about acquiring the tax credit for hybrid car goods is that your income tax liability will be lessened. Furthermore, any surplus cannot be passed on to the succeeding year. What all this information means is that, the government is practically encouraging the purchase of automobiles that are more energy-saving and environmentally friendly by giving buyers the benefit of saving money on gas. Additionally, the government is allowing buyers of hybrid cars to save through tax breaks.

Have you been thinking about hybrid cars and maybe wondering what a hybrid is anyway? Well, in this article we will hopefully help you understand them a little better.

A hybrid is very similar to the gasoline powered automobile most people drive today, the big difference is the hybrid also uses batteries as part of their power supply, most hybrid cars on the road right now are gasoline-electric hybrids although, there are some that are diesel-electric, but for the sake of this article we will concentrate on the gasoline-electric powered car.

A gas powered car has a fuel tank, which supplies gasoline to the engine, which turns the transmission, which turns the wheels. The hybrid is a compromise, it attempts to significantly increase mileage and produce fewer emissions than the gas powered car, to be useful for you or me, a hybrid must be able to be refueled quickly and deliver around 300 miles or better between refueling. The fuel tank on a hybrid is very sophisticated. Advanced electronics allow it to act as a motor as well as a generator. It can draw energy from the batteries to accelerate the car, but acting as a generator, can slow the car down and return energy back to the batteries. It takes 1000 pounds of batteries to equal a gallon of gasoline in energy. This combination can and is cutting gasoline consumption substantially. I am sure things will only get better in the future for hybrid cars; they were a long time in coming and will not be for everybody. The cost for the hybrids is not as much as one might think although some do get quite expensive depending on the extras and options added, the same as any new automobile

Here is a list of what is available in gas powered hybrids on the market today and some that will be coming soon,
Honda Accord, Honda Civic, Honda Fit expected in 2008, Honda Insight, Hyundai Accent, expected in 2009, Chevrolet Malibu expected 2007 Lexus GS 450h, Nissan Altman, expected in 2007, Toyota Camry, Toyota Plus,
SUVs & Minivans- Chevrolet Tahoe, expected 2007, Dodge Durango, expected in 2007, Ford Escape SUV, GMC Yukon, expected 2007, Lexus RX400h SUV, Toyota Highlander SUV, Mercury Mariner SUV, and others will be coming in the near future.

Right now there are enough on the market to look at to see if maybe a hybrid automobile is for you. At first, the designs seem a bit different, they do take a little time to get used to, but after awhile though they do seem to fit right in and some will get you looking a second time at the smart design. Take a look and maybe a test drive, I think you will be pleasantly surprised at the ride and concept of the new hybrids. They are different and will take some getting used to, but they are much needed and will do away with some of the other gas guzzling automobiles that are on the road today. I hope after reading this article you will have a better understanding of what a hybrid car is all about, they seem to be here to stay.