Tax Credits and incentives for Hybrid Cars, Autos and vehicles.

Starting this year, 2006, buyers of many hybrid vehicles are eligible for a sizable tax credit. In some cases, the hybrid vehicle tax credits are large enough to almost entirely make up the additional cost of the hybrid vehicle. Some hybrids have already been eligible for tax deductions. But the new credit are subtracted directly from the money owed the IRS. 

 The amount of the credit for each vehicle is based on three factors: The size of the vehicle, the fuel efficency of 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.