September Is Last Month To Qualify For Hybrid Vehicle Tax Credit

If you’re still thinking of purchasing a hybrid vehicle this year, time is running out to get in on the Alternative Motor Vehicle tax credit. We pointed out the official IRS schedule of expiring credits back in March, and now you’ve got less than 30 days to score a small credit (currently 25% of the original credit amount) on a Toyota or Lexus hybrid—after September 30th, the credit disappears for good. Honda tax credits may be cut by 50% after September 30th, but the verdict’s still out on this one.

Other AMV credits will continue to exist for a while; for example, alternative fuel vehicles will score you a credit until at least 2010, while fuel-cell vehicles can qualify for credits as high as $12,000 until at least 2014. Which is good, considering that only one car so far meets either category—the Honda Civic GX and the not-available-for-purchase 2006 Honda FCX, respectively.

But remember, if you’re subject to the alternative minimum tax, the credit won’t apply.

“Tax Credits for Fuel-Saving Autos” [SmartMoney.com]

(Photo: Getty)

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  1. Chicago7 says:

    And yet, the SUV subsidy goes on and on and on, doesn’t it?

  2. 82300sd says:

    I wish there were more NGV available. Honda Civic GX is a good alternative if you’re looking to buy a Prius. (if you have a natural gas car filling station near you.) I believe 1 gallon of natural gas is about $2 now. A new Civic GX is a little pricey, but there’s also $4000 tax credit.

  3. Buran says:

    Wow, good way for the government to encourage hybrid use: kill the tax credit!

  4. Rusted says:

    Hybrids aren’t all that great. Still cheaper to get and drive a comparable regular car in ownership cost.

  5. Buran says:

    @Rusted: Sometimes, doing the right thing isn’t cheap.

  6. azntg says:

    @Buran: Doing the right thing isn’t always cheap, you’re right. But, it’s not always expensive either.

    Arguably, there’s the controversial side to hybrids. Granted, it cuts down immensely on emissions and fuel usage, nobody can argue with that. But then again, the materials used to make a hybrid car, especially the batteries, it can be bad enough to offset the good in due time.

  7. balthisar says:

    @Chicago7: Only applies to business owners. I can’t get an SUV subsidy, unless, maybe, I get a Hybrid Mariner or Escape. ;-)