Tax Breaks for Hybrid Cars
The alternative motor vehicle credit has been available to purchasers of hybrid and lean-burn technology vehicles since 2006. The full credit is available for approved hybrid and lean-burn technology vehicles up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th hybrid passenger automobile or light truck or advance lean burn technology motor vehicle.
As of 2008, both Toyota and Honda had sales exceeding 60,000 vehicles. As such, Toyota, Lexus, Honda and Acura hybrid cars do not qualify for the federal Alternative Fuel Vehicle credit. However, these vehicles and other vehicles that do qualify for the credit may still qualify for the Oregon Department of Energy Residential Energy credit which provides for a credit of up to $1,500 against your Oregon state income tax liability.
Following are descriptions of a variety of alternative fuel vehicles and qualifying credits amounts:
Qualifying Hybid VehiclesFord achieved sales of 60,000 in July, 2009 and as such, Ford and Mercury vehicles are subject to phase-out reductions in 2009. Following is a list of qualifying vehicles and credit amounts for 2009:
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Qualifying Lean Burn VehiclesPurchasers of advanced lean burn technology motor vehicles may also qualify to claim a credit. The following vehicles qualify for the credit in 2009:
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Plug-In Electric VehiclesPlug-in electric vehicles using certain types of batteries may qualify for a new tax credit. The Emergency Economic Stabilization Act of 2008 (EESA) and the American Recovery and Reinvestment Act of 2009 (ARRA) created two new tax credits for various types of electric vehicles, which may include what are commonly referred to as neighborhood electric vehicles. ARRA creates a tax credit for low-speed or two- or three-wheel electric vehicles, such as motor scooters, purchased after Feb. 17, 2009, and before Jan. 1, 2012. The amount of the credit is 10 percent of the cost of the vehicle, up to a maximum credit of $2,500. To qualify, a vehicle must be either a low-speed vehicle that is propelled to a significant extent by a rechargeable battery with a capacity of at least 4 kilowatt hours or be a two- or three-wheeled vehicle that is propelled to a significant extent by a rechargeable battery with a capacity of at least 2.5 kilowatt hours. EESA created a tax credit for vehicles that have at least four wheels and draw propulsion using a rechargeable traction battery with at least four kilowatt hours of capacity. For 2009, the minimum credit is $2,500 and the credit tops out at $7,500 to $15,000, depending on the weight of the vehicle and the capacity of the battery. During 2009, low-speed, four-wheeled vehicles manufactured primarily for use on public streets, roads and highways (neighborhood electric vehicles) may qualify both for the EESA credit and, if purchased after February 17, 2009, for the ARRA credit for low-speed electric vehicles. A taxpayer may not claim both credits for the same vehicle. Vehicles manufactured primarily for off-road use, such as for use on a golf course, do not qualify for either credit. |
Plug-in Hybrid VehiclesCertain new qualified plug-in electric drive motor vehicles may qualify for credit amounts ranging from $7,500 to $15,000, depending on the gross vehicle weight rating of the vehicle. The new qualified plug-in electric drive motor vehicle credit will being to phase out after a manufacturer has sold more than 250,000 qualifying vehicles for use in the United States. The earliest qualifying vehicles are anticipated to become available in 2010 or 2011. Ford, Toyota, Chevrolet and Nissan have programs at various stages of development. There are no qualifying vehicles available for 2009. |