Hybrid tax credit
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Many governments offer a hybrid tax credit or hybrid tax rebate as a financial incentive for consumers to purchase a
hybrid vehicle A hybrid vehicle is one that uses two or more distinct types of power, such as submarines that use diesel when surfaced and batteries when submerged. Other means to store energy include pressurized fluid in hydraulic hybrids. The basic princip ...
.


Canada

Residents in OntarioVehicles Powered by Alternative Fuels
, Government of Ontario, accessed as of June 2, 2008 (until July 1, 2010 when the HST takes effect, ending the previous PST rebate) and Quebec,QST rebate for hybrid vehicles
, Government of Quebec, accessed as of August 21, 2008 Canada can claim a rebate on the Provincial Retail Sales Tax of up to on the purchase or lease of a hybrid vehicle, and Federal Transport Canada can claim a rebate of .
Transport Canada, accessed as of June 2, 2008


United States

The U.S. Energy Policy Act of 2005 established a federal income
tax credit A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit they have accrued from the total they owe the state. It may also be a credit granted in recognition of taxes already paid or a form of state "dis ...
of up to $3,400 for the purchase of new
hybrid vehicle A hybrid vehicle is one that uses two or more distinct types of power, such as submarines that use diesel when surfaced and batteries when submerged. Other means to store energy include pressurized fluid in hydraulic hybrids. The basic princip ...
s, purchased or placed into service after December 31, 2005. Vehicles purchased after December 31, 2010 are not eligible for this credit. The law limited the tax credits to the first 60,000 eligible vehicles per carmaker, meaning that credits for popular models will be phase out before the tax break's scheduled expiration date. Note these are credits — dollar for dollar tax savings — not merely deductions. The tax credit is to be phased out two calendar quarters after the manufacturer reaches 60,000 new cars sold in the following manner: it will be reduced to 50% if delivered in either the third or fourth quarter after the threshold is reached, to 25% in the fifth and sixth quarters, and 0% thereafter. The
Internal Revenue Service The Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory ta ...
is responsible for certifying that certain passenger autos and light trucks qualify for the credit and the amount of the credit.


See also

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Government incentives for plug-in electric vehicles Government incentives for plug-in electric vehicles have been established around the world to support policy-driven adoption of plug-in electric vehicles. These incentives mainly take the form of purchase rebates, tax exemptions and tax credits, ...


References

{{Reflist Hybrid electric vehicles Tax credits