Hybrid Cars Tax Credits: Tax Credits for Hybrid Cars and Autos

Buyers of many hybrid vehicles can get a big tax credit, depending upon the make and model of the hybrid vehicle. In some cases, the hybrid vehicle tax credits are large enough to almost entirely make up the additional cost of the hybrid vehicle as compared to a non-hybrid. 

Some hybrid vehicles have already been eligible for tax deductions. But the new credits are better than deductions as they are subtracted directly from the money you owe the IRS. 

Even though the new tax law covers deisels as well as hybrids, no diesal vehicles will get tax credits in spite of the fact that some get extremely high gas mileage. The amount of the credit for each vehicle is based on three factors:, how large is the vehicle? A vehicle could also get a smaller credit if it is estimated to save at least 1,200 gallons of fuel over its lifetime. Vehicles also must meet certain emissions standards to qualify for a tax credit. Regardless of their fuel economy.