That’s the Breaks -- At Least Tax-Wise for Hybrid Owners

While some scramble around tax time to get their taxes done and deduct as much as possible, the government is offering huge credits to anyone who purchases a Hybrid car or SUV. Looks like the government is going “green” and the consumer are seeing more of it. In a socially conscious world, the government is rewarding those who join the socially conscious bandwagon and Hybrid owners can now take advantage of the tax credit whereas it once was only a reduction in your taxable income.

Are you ready for a tax break? Who isn’t? With the economy in the state that it is in and the environments state not gaining huge improvements, both could use a big break.

Take for example the environment (before talking about taxes). With global warming and general pollution growing at enormous rates, they both could use a boost. The ever-growing number of cars on the road today -- especially the number of single passenger drivers growing at a steady rate -- is producing more pollution, leading to damaging effects to the environment. By driving a Hybrid car or SUV, each and every driver cuts down on the amount of pollutants entering the atmosphere. This, in turn, gives the environment and the people who live in it a big break. The more Hybrid cars on the road, the more people can breath a little easier.

Breathing a little easier around tax time is true too for Hybrid owners. The tax break used to be simply an incentive. In other words, you could only deduct a certain amount, depending on the make and model of your car, from your taxable income. Well all that is about to change starting this year. The tax break is perfect for deferring some of the extra cost of buying a Hybrid. Coupled with fewer trips to the pump and less trips to the mechanic and a Hybrid owner can rejoice.

Starting in 2006 the credits will be given to those who purchase a new Hybrid car or SUV and of course, there are rules to follow.

The tax credits range from $350 to $3150 depending on which make and model is purchased.

Not only do Hybrids get more miles per gallon and cost less to maintain, but they are also easier on the pocket when it comes to tax time. No more waiting until the last minute to file your taxes, buying a Hybrid just might help you file them early.

But as everyone knows about the government and IRS -- there are rules to follow:

1) The Hybrid must have been put on the market by January 1, 2006 and bought on or before December 31, 2010.

2) The tax credit is only available to the original buyer of the Hybrid.

3) The Hybrid must be used mostly in the Untied States of America.

4) If a qualifying Hybrid is leased to a consumer, the company who leased the vehicle may claim the credit.

5) If the consumer purchasing the Hybrid is tax-exempt, then the dealer may claim the credit.

The same tax-breaks cannot be claimed for any other vehicle bought or leased in the United States. Being more eco-friendly has its perks, tax-wise, fuel-wise, and maintenance-wise.

When researching a vehicle, be aware of all the breaks one can get after the purchase. Buying a Hybrid car or SUV is a sound choice in a socially conscious and eco-friendly world. Tax breaks and other incentives aren’t relegated only to the Federal government. They work on the state and county levels too.

Be sure to check with your particular state for tax breaks. Certain states have incentives; breaks and local counties might even have incentives too. For example, some states offer large tax breaks (but check with your state tax laws because some might be set to expire soon). Some counties, for example, offer such breaks for Hybrid car and SUV owners like free parking in city owned parking lots. Where once a parking pass might have cost upwards of $100, your Hybrid car can save you that and more.

That’s the breaks -- at least tax-wise for Hybrid owners!