Car News

Green Car Tax Credits to Expire by End of Year

RELATED READING
RESEARCH BY MAKE
Toyota cars, trucks and SUVs Ford cars, trucks and SUVs Honda cars, trucks and SUVs Chevrolet cars, trucks and SUVs Jeep cars, trucks and SUVs Nissan cars, trucks and SUVs BMW cars, trucks and SUVs Volkswagen cars, trucks and SUVs Mercedes-Benz cars, trucks and SUVs
Acura cars, trucks and SUVs Alfa Romeo cars, trucks and SUVs AMC cars, trucks and SUVs Aston Martin cars, trucks and SUVs Audi cars, trucks and SUVs Bentley cars, trucks and SUVs BMW cars, trucks and SUVs Bugatti cars, trucks and SUVs Buick cars, trucks and SUVs Cadillac cars, trucks and SUVs Chevrolet cars, trucks and SUVs Chrysler cars, trucks and SUVs Daewoo cars, trucks and SUVs Datsun cars, trucks and SUVs DeLorean cars, trucks and SUVs Dodge cars, trucks and SUVs Eagle cars, trucks and SUVs Ferrari cars, trucks and SUVs FIAT cars, trucks and SUVs Fisker cars, trucks and SUVs Ford cars, trucks and SUVs Freightliner cars, trucks and SUVs Genesis cars, trucks and SUVs Geo cars, trucks and SUVs GMC cars, trucks and SUVs Honda cars, trucks and SUVs HUMMER cars, trucks and SUVs Hyundai cars, trucks and SUVs INFINITI cars, trucks and SUVs Isuzu cars, trucks and SUVs Jaguar cars, trucks and SUVs Jeep cars, trucks and SUVs Kia cars, trucks and SUVs Lamborghini cars, trucks and SUVs Land Rover cars, trucks and SUVs Lexus cars, trucks and SUVs Lincoln cars, trucks and SUVs Lotus cars, trucks and SUVs Maserati cars, trucks and SUVs Maybach cars, trucks and SUVs Mazda cars, trucks and SUVs McLaren cars, trucks and SUVs Mercedes-Benz cars, trucks and SUVs Mercury cars, trucks and SUVs MINI cars, trucks and SUVs Mitsubishi cars, trucks and SUVs Nissan cars, trucks and SUVs Oldsmobile cars, trucks and SUVs Plymouth cars, trucks and SUVs Pontiac cars, trucks and SUVs Porsche cars, trucks and SUVs RAM cars, trucks and SUVs Rolls-Royce cars, trucks and SUVs Saab cars, trucks and SUVs Saturn cars, trucks and SUVs Scion cars, trucks and SUVs smart cars, trucks and SUVs SRT cars, trucks and SUVs Subaru cars, trucks and SUVs Suzuki cars, trucks and SUVs Tesla cars, trucks and SUVs Toyota cars, trucks and SUVs Volkswagen cars, trucks and SUVs Volvo cars, trucks and SUVs Yugo cars, trucks and SUVs
RESEARCH BY STYLE
AWD/4WD
Commercial
Convertible
Coupe
Hatchback
Hybrid/Electric
Luxury
Sedan
SUV/Crossover
Truck
Van/Minivan
Wagon

author photo by Autotrader December 2010

If you’ve been considering the purchase of a hybrid or diesel vehicle, now may be the time to act. A federal tax credit, applicable to many of today’s hybrid and diesel cars, is set to expire at the end of the year – with no renewal in sight.

The tax credit, established by the Energy Policy Act of 2005, went into effect on January 1, 2006, offering credits of up to $3,400 on certain vehicles. While the credit originally applied to all hybrids and diesels including the Toyota Prius and Honda Civic Hybrid, it was gradually phased out under the provisions of the bill as those vehicles neared 60,000 sales.

But many limited-production or recently-released fuel efficient cars have yet to reach the 60,000-sale threshold, meaning the tax credit is still in full force – for now. The original act decreed that the credits would expire on December 31, 2010, regardless of sales totals, leaving many fuel efficient cars without the federal tax incentive as a unique selling point.

Exempted from the expiration of federal tax credits are fully-electric vehicles like the Nissan Leaf and Chevrolet Volt, which remain eligible for hefty government incentives. Also not expiring at year’s end are state and local tax incentives, which can still sweeten the pot for consumers considering fuel-efficient cars.

Displayed below is a list of current models qualifying for the federal tax credit, as well as the amount of each model’s credit. Since it’s still uncertain when – or if – Congress will vote to continue the tax benefits, smart car shoppers considering one of these vehicles might do well to buy before 2011 to decrease their tax liability.  

This image is a stock photo and is not an exact representation of any vehicle offered for sale. Advertised vehicles of this model may have styling, trim levels, colors and optional equipment that differ from the stock photo.
Green Car Tax Credits to Expire by End of Year - Autotrader