if all you have to do is put clean fuel i dont understand why it doesnt apply to used cars, if im helping to save the environment by buying a hybrid then why cant i be rewarded just like anyone who buys a new one.

 

You can voice your concern here all day long, but it doesn't matter. You don't even have to understand it. It comes down to the fact that the deduction is only good for vehicles that have never been put into service. (Not based on any facts, but I believe the purpose of this deduction/credit is to promote the increase in the amount of hybrids on the streets. Giving the deduction/credit to new vehicles influences new car purchasers to add another hybrid to US roads.)

BUT! You CAN write your congressman, senator, Whitehouse, etc. Create a website about your concerns. Protest! Create a Million Hybrid March! Be the first to put a hybrid on the moon! The sky's the limit! But seriously, if you don't like the current tax laws, you can do your part in getting them changed.

 

thanks for your input, i guess it does make sense when you put it that way, i wish i could buy a brand new 06 but i just cant afford it. well thanks everyone for the info. Justin

 

It doesn't apply to used cars because that's what the law and the IRS instructions say. Of course you want to be rewarded. Who doesn't? There's nothing inherently fair about taxes. It's about what the law says, not about fairness.

 

This is straight from the IRS.gov site...

If you are the original (first) owner of a qualifying hybrid vehicle — one that combines an electric motor with a gasoline-powered engine — you may be eligible to claim a one-time tax deduction on your federal income tax return.

http://www.irs.gov/newsroom/article/...107766,00.html

I believe this used to say the credit can only be claimed the year you bought your hybrid vehicle, and now says "original (first) owner of a qualifying hybrid vehicle" which unfortunately disqualifies me.

 

For some reason, I'm still thinking about that "Million Hybrid March." That would just be too cool!

 

yeah, i know. it sounds like a bad idea to me.

what about when a car has two owners, like a cosign sort of thing? i'm guessing both people couldn't claim the deduction.

 

You're right. Only one could claim it.

It's like if a divorced couple has a kid to claim. Only one parent would be entitled to the claim. A failsafe for that situation has been in use for a while. The kid's SSN. It must be entered onto the tax forms in order to take the deduction/credit.

If both parents tried to claim the child, whoever claimed them first would get the deduction. When the second parent files, IRS will kick back the return. If there was a reason the second parent would be entitled to the return, like if it was in the divorce decree, then the second parent would be able to take legal action to get the tax deduction/credit. But, that's way beyond my level. I merely enter numbers into the forms for people.

Perhaps, in the future, now that more and more hybrids are being sold, there may come a time when we'll have to enter the VIN to take the deduction/credit. But for now, it's taken on faith.

And speaking of the future, who knows if the tax breaks will last long! Maybe in a year or two, the tax break for hybrid cars will disappear!

 

No need to speculate. The tax credit that kicks in on Jan. 1, 2006 is good for only 60,000 hybrid vehicles per manufacturer. This means that the Prius will reach its quota in about six months, after which its credit will be phased out over the next 15 months. The full credit for the HCH and HAH may last about one year at current sales rates, after which it will gradually be phased out over 15 months. The whole program expires in 2010.

 

That's unfortunate.