Hybrid Vehicles Certified for New Energy Tax Credit

Hybrid Vehicles Certified for New Energy Tax Credit

The IRS has certified the following hybrid vehicles and will provide tax credits to buyers:

à 2006 Ford Escape Hybrid, front-wheel drive: $2,600

à 2006 Ford Escape Hybrid, 4WD: $1,950

à 2006 Mercury Mariner Hybrid, 4WD: $1,950

à 2005 Toyota Prius: $3,150

à 2006 Toyota Prius: $3,150

à 2006 Toyota Highlander 4WD Hybrid: $2,600

à 2006 Toyota Highlander 2WD Hybrid: $2,600

à 2006 Lexus RX400h 2WD: $2,200

à 2006 Lexus RX400h 4WD: $2,200

The tax credit for hybrid vehicles applies to vehicles purchased on or after Jan. 1, 2006. It replaces the tax deduction of $2,000 that previously was allowed for the purchase of new hybrid vehicles before Dec. 31, 2005.

However, the new tax credits come at a time when sales of some hybrids have begun to slow, according The Wall Street Journal. –Hybrids like the Toyota Prius and Honda Civic Hybrid still enjoy strong demand. But the slowdown for some other models comes as more consumers are questioning whether hybrid vehicles deliver sufficient fuel savings in real-world driving to justify the extra cost of the technology. Consumer demand for hybrid gas-electric vehicles is being watched closely by auto executives, and advocates of technology to cut automotive petroleum consumption.,” WSJ reported.