Tax Credits promised for hybrid and diesel vehicles in the Energy Act have not been formalized by the IRS, but estimates are available online, reports [I]Car Buyers Notebook[/I]. Estimates from the American Council for an Energy Efficient Economy predict the Toyota Prius will have the highest credit of $3,140 available to buyers. Other hybrids approved for tax credits include the Ford Escape; Toyota Highlander; Honda Accord, Civic and Insight; and Lexus RX400h. More vehicles may qualify as the IRS reviews more hybrids.
IRS spokesman James Dupree says the tax credits for hybrids are calculated along two criteria, a fuel economy amount that varies with the rated fuel economy of the vehicle compared to a comparable 2002 model year standard; and a conservation credit based on the estimated lifetime fuel savings of a qualifying vehicle compared to a comparable 2002 model year vehicle.
According to [I]Car Buyers Notebook[/I], The Energy Act provides tax credits for 60,000 qualifying vehicles from each automaker. To see the report from ACEE, go to http://www.aceee.org/transportation/taxcredits06.pdf. More information is also available at the Department of Energyês Web site at www.fueleconomy.gov/feg/tax_hybrid.shtml.
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