People who buy a hybrid car or truck this year could get a bigger tax credit. The IRS has issued new tax credit guidelines for the purchase of hybrids. The Great Lakes Radio Consortium’s Celeste Headlee reports:
Transcript
People who buy a hybrid car or truck this year could get a bigger tax credit. The IRS has issued
new tax credit guidelines for the purchase of hybrids. The Great Lakes Radio Consortium’s
Celeste Headlee reports:
Beginning this month, hybrid owners will be eligible for a tax credit of up to 3,400 dollars. That
money will be subtracted directly from what the taxpayer owes the IRS. Under previous tax law,
hybrid owners could only claim a 2,000 dollar tax deduction.
Don McKenzie is a Vehicles Engineer with the Union of Concerned Scientists. He says the new
law is a step forward because it’s performance based… vehicles with better fuel economy are
eligible for a higher tax credit.
But he says the credit is phased out after a company builds about 60,000 eligible vehicles… and
there’s another important component missing as well.
“It doesn’t require an increase in overall fleet fuel economy and it is possible that some
automakers could use increased sales of hybrid vehicles to offset increased sales of gas guzzlers.”
Automakers are responsible for getting their vehicles certified as eligible vehicles. They hope to
have vehicles certified beginning this summer.
For the GLRC, I’m Celeste Headlee.