So its tax season, and I figured this out way back in December or January, so I 'd like someone to look it up and back me up on these numbers. This is what I came up with:

Curb weight is 2,875 lbs.
28.8 mpg is the class’ fuel economy.
$ 1,717.681 is the lifetime fuel savings
Percentage is 170 % better than fuel economy of class

$ 800 + 250 = $1,050 Credit for 2006 calendar year

How do I get this and why did I write a bunch of numbers ???? Well if you read the Energy Act of 2005, it is where it spells out (in English that is anything but plain) that the deduction will fade out, and the credit will take its place. And then, it starts with this complicated method of calculating the credit based upon the lifetime fuel savings and how much better the cars fuel economy is than the fuel economy of its weight class. So thats what I got after an hour of reading the ACTUAL Energy Bill in its unaltered form and figuring the tables. Now, I could have read it wrong, and missed another number to add because the sections had you going back and forth and it WAS confusing, but I'm almost sure I got it right. If someone would back up my numbers, I would appreciate it.

Also, please remember that the number is low compared to the deduction yes, but you have to remember that a deduction lowers your gross income, a credit is a dollar for dollar credit by the gov't of the taxes you paid. So, a credit of 1,025 means you get to put an extra 1,025 in the taxes paid box of your 1040 (in addition to the taxes it says you paid on your W-2's . It actually works out better the more money you make. For someone like me, a student, it doesn't mean much either way....

 

Doesn't the curb weight very by the exact model you got?
How is the lifetime fuel savings derived?
$ 800 + 250 = $1,050 Credit for 2006 calendar year What is the $800 for and what is the $250 for?

Not doubting you just tring to figure out what was done.

Thanks,
Jessica

 

mexiken,

I'm impressed that you took the time to read the any legislation coming out of Washington. I think the last law that I read was the Bill of Rights in high school....I know I'm really civic minded.

For my own sake I hope your figure is wrong, as it is half of what I have read at most other locations (a tax credit of $2100 for 2006 HCH). To double check the $2100 I googled "2006 hybrid tax credit" and on the other hits was the DoE's website dealing with fuel economy (http://www.fueleconomy.gov/feg/tax_hybrid_new.shtml) which used the $2100 figure.
Patrick

It looks like the fueleconomy.gov website is a joint DoE and EPA website (kind of makes sense).

 

It might be. Like I said, I might have missed another number to add to the mix, I added the lifetime fuel savings credit and some other credit (I can't remember, but thus the two numbers).

I got the curb weight from the Honda website, and the lifetime fuel savings is derived from the tables in the Energy Act. You'd have to read it and figure it out. Thats why I posted them, so you could do it yourself, and compare the results.

 

Emissions is also part of the number. Notice how the ACEEE gives the highest credit to the Civic GX which runs on natural gas and has lower emissions than the Prius even though it has worse fuel economy than the Prius.

 

That MIGHT have been what the 800 dollar number is, but I can't be sure, its been so long....

 

All the estimates I have seen for the Civic are $2,100-2,400 tax credit. Hopefully, it will be at least around there.

According to my tax guy and what I could find on the internet the figures aren't finalized yet.

 

From what I can tell from the Act, section 314, it's partially based on percent improvement over the 2002 average and the amount of peak power the electric motor produces as a percentage of the total. Based on that, I have $1,000 for being between 150-175% of the 2002 average plus $500 for being between 10-20% total horsepower (20hp/110hp total) for a subtotal of $1,500. If emissions play a factor, that might make up the rest. I just can't find that section.

Now, if the fuel economy average is actually based off of the highway miles, which I believe is 51mpg, that would be 177% of average, which would bring the amount to $1500 for that section and a subtotal of $2,000.

Of course, I'm no lawyer or politician, so I could be pulling this one out of where the sun don't shine...

Jeff

Jeff