- Days left
Ford hybrid at a car show - tax credits for green cars about to expireThere's a lot hype around electric and extended-range hybrid vehicles these days. One of the reasons people and companies are buying them, though, are the generous federal and state tax credits that bring down their costs.

But while 100% EVs like the Tesla EV roadster and Nissan Leaf, and extended-range EV Hybrids like the Chevy Volt, will continue to be eligible for $7,500 tax credits in the new year, government incentives for some hybrids, "clean diesel" and natural gas vehicles are expiring unless they get extended by Congress in the lame duck session.

The $4,000 tax credit for the CNG-powered Honda Civic GX, the $2,200 credit for many of GM's Chevrolet and GMC hybrid SUV's, the $1,550 tax break for some of BMW's hybrid SUV's and the $650 credit for many of the Volkswagen and Audi turbo diesels will go by the wayside on December 31 unless Congress acts.

Tax breaks for better-selling cars such the Toyota Prius hybrid, Ford Escape Hybrid and Honda Insight hybrid previously expired because their sales exceeded federal quotas regarding how many cars can qualify for the credit.

Fueleconomy.gov has more information about the remaining tax credits on all "green" vehicles.
The Nat-Gas Honda Civic GX never caught on. But VW and Audi sell thousands of clean-diesel vehicles, which get between 25% and 35% better fuel economy than their gasoline-powered counterparts. Diesel vehicles typically cost a few thousand dollars more than gas counterparts, though, and seasonal prices for diesel fuel can be 20 to 40 cents a gallon more than regular gas.

Attempts to decrease taxes on diesel to make it more attractive have gotten little traction in Congress. In Europe, almost half of new vehicles sold are clean-diesel, because countries have taxed regular gasoline higher, making diesel a deal.

New electric vehicles like the Nissan Leaf and those from Tesla, and plug-in Hybrids like the Chevy Volt, are eligible for credits of $7,500. [Click those links for reviews and information on the vehicles from AOL].

For the complete list of vehicles and the tax credits that will be expiring, as well as those that will continue (barring changes from Congress) go to http://www.fueleconomy.gov/feg/taxcenter.shtml.

Increase your money and finance knowledge from home

Intro to different retirement accounts

What does it mean to have a 401(k)? IRA?

View Course »

Introduction to Retirement Funds

Target date funds help you maintain a long term portfolio.

View Course »

TurboTax Articles

E-file: Income Tax Return Electronic Filing

Forget that paper tax return! Electronic filing (e-filing), online tax preparation and online payment of taxes are getting more popular every year. If you've wondered about e-filing, here are the answers to frequently asked questions, including why e-filing is a good idea, which states let you e-file, how much e-filing costs, and how soon you'll receive your refund.

Multiple States - Where To File

Learn where to file state income taxes, even if you're in the military, or earned money in multiple states. TurboTax will calculate how much you owe to the different states where you have earned income.

Will Medicare/Medicaid be Impacted by ACA?

The Affordable Care Act put in place significant tax-related programs that impact Medicare and Medicaid, such as increased Medicare taxes on earned and unearned income, and Medicaid changes designed to increase the number of insured individuals. Establishing whether you are affected by the ACA-imposed taxes, or are eligible for certain health programs that fall under the Centers for Medicare and Medicaid Services, is determined by filing your income tax.

Add a Comment

*0 / 3000 Character Maximum