xcel
08-14-2007, 10:30 AM
The tax credit was designed to offset the premium buyers typically pay when they purchase a hybrid instead of a conventional vehicle. (http://www.usatoday.com/money/perfi/columnist/block/2007-08-13-hybrid-credit_N.htm)
http://www.cleanmpg.com/photos/data/501/2007_Honda_Civic_Hybrid.jpgSandra Block - USA TODAY - Aug. 14, 2007
Honda expects the HCH-II to hit the 60,000 sales mark by the third quarter of this year. If that happens, the current $2,100 tax credit will be cut in half by January 08, dwindle to just 25% by next July and evaporate by the end of 2008.
If you're considering an end-of-summer vacation, go ahead and unfurl your road maps.
The average price of a gallon of regular gas this week is $2.77, down nearly 23 cents from this time last summer, according to the Energy Information Administration. That means you might be able to add an extra day to your trip, or stay in a motel with premium cable and a pool.
Oil analysts warn, however, that a major hurricane or refinery breakdown could send gas prices sharply higher. In addition, the recent bridge collapse in Minneapolis has prompted some lawmakers to propose raising the federal gas tax to pay for bridge repairs. (President Bush said he opposes the idea.)
One way to protect yourself against future oil shocks: Buy a fuel-efficient car. All the major automakers have rolled out high-mileage cars and trucks, and more are on the way. And if you buy a hybrid — a vehicle that combines an electric motor with a gasoline engine — you may be eligible for a tax credit when you file your 2007 tax return.
But if you're counting on the tax credit to reduce the cost of buying a hybrid, pay attention to the calendar.
The tax credit begins to phase out after an automaker sells 60,000 vehicles.
Once a manufacturer's sales hit the limit, buyers are eligible for the full credit until the end of the quarter in which the threshold was reached and through the next quarter. Then they're eligible for half the credit for six months. For the next six months, the credit will shrink to 25% of the full amount, then it will disappear … http://www.usatoday.com/money/perfi/columnist/block/2007-08-13-hybrid-credit_N.htm
http://www.cleanmpg.com/photos/data/501/2007_Honda_Civic_Hybrid.jpgSandra Block - USA TODAY - Aug. 14, 2007
Honda expects the HCH-II to hit the 60,000 sales mark by the third quarter of this year. If that happens, the current $2,100 tax credit will be cut in half by January 08, dwindle to just 25% by next July and evaporate by the end of 2008.
If you're considering an end-of-summer vacation, go ahead and unfurl your road maps.
The average price of a gallon of regular gas this week is $2.77, down nearly 23 cents from this time last summer, according to the Energy Information Administration. That means you might be able to add an extra day to your trip, or stay in a motel with premium cable and a pool.
Oil analysts warn, however, that a major hurricane or refinery breakdown could send gas prices sharply higher. In addition, the recent bridge collapse in Minneapolis has prompted some lawmakers to propose raising the federal gas tax to pay for bridge repairs. (President Bush said he opposes the idea.)
One way to protect yourself against future oil shocks: Buy a fuel-efficient car. All the major automakers have rolled out high-mileage cars and trucks, and more are on the way. And if you buy a hybrid — a vehicle that combines an electric motor with a gasoline engine — you may be eligible for a tax credit when you file your 2007 tax return.
But if you're counting on the tax credit to reduce the cost of buying a hybrid, pay attention to the calendar.
The tax credit begins to phase out after an automaker sells 60,000 vehicles.
Once a manufacturer's sales hit the limit, buyers are eligible for the full credit until the end of the quarter in which the threshold was reached and through the next quarter. Then they're eligible for half the credit for six months. For the next six months, the credit will shrink to 25% of the full amount, then it will disappear … http://www.usatoday.com/money/perfi/columnist/block/2007-08-13-hybrid-credit_N.htm