Yes it's your money.

 

As Schwa mentioned below:

It's based on a comparison between the average of all the 2002 cars in the same weight class, not specific model.

This is the basis of the credit.
e.g. the Prius gets an EPA combined 56 mpg whereas other 'midsized' vehicles get say an EPA 28 mpg combined. The Prius is 100% more efficient than the others in it's class so it qualifies for about 100% of the credit.

The HCH is 'competing' with the compact class where combined EPA FE ratings are likely in the 34 mpg range. It's credit is relatively less.

 

Dear Lab Rat,

Thanks for making the most sense on this thread. I bought my HAH Dec 29, 05 and then heard the ruckus about tax breaks. Honda's web site links to the IRS page, as of 1/6/06 and it didn't look like I was going to get any break. So $650 might be great.

I plan to talk to my accountant on the true deal shortly and will post back here.

I mainly got mine because I wanted a car that would cost between $20-30K, my 6'2" frame would fit in, that would get better than the 17-19 mpg my '93 Jimmy was getting, would have room for my two boys and wife on road trips, and wouldbe fun to drive. The 250 Hp Accord with the double wishbone suspension made it. With a Thule Evolution box on top I can carry our skis and snowboards wherever we go on the road. (THe Accord back seat doesn't fold down or have a pass through as that is where the battery is, bit of a bummer.)

My mileage is still not like the HCH, but it is in the mid to high 20's and given that the engine is brand new (not broken in) and the weather is cold I guess that's not bad. I am still working on my driving habits.

Sincerely,
Roland


QUOTE=Lab Rat]Got this from here... http://go.ucsusa.org/hybridcenter/incentives.cfm

Federal Tax Credits for Advanced Vehicles: On August 8, President Bush signed the comprehensive energy bill into law. Included were new tax credits for advanced vehicle technologies ranging from $250 to $3,400 depending on the vehicle's level of fuel economy improvement. For a limited time, quality hybrids like the Honda Civic Hybrid, Toyota Prius or Ford Escape Hybrid will qualify for tax credits in the range of $1,700-$3,150. The tax credits will be available beginning on January 1, 2006 and will be available through December 31, 2010, though they will expire earlier for the most popular hybrids. The full tax credits will be available until a manufacturer reaches 60,000 vehicles sold (60,000 for Toyota, 60,000 for Ford, etc.). Once a manufacturer has sold 60,000 vehicles, a one-year "phase out" will begin after the next complete calendar quarter; 50% of the credit will be available for that manufacturer's hybrids in the first two quarters of the phaseout period and 25% in the final two quarters. UCS estimates the following credits for each hybrid vehicle currently sold:

HEV Model Emissions Rating Tax Credit

2005-2006 Toyota Prius Bin 3 $3,150

2005 Honda Insight (automatic) Bin 5 $1,450

2005 Honda Insight (manual) Bin 9 $0

2005 Honda Civic Hybrid (automatic) Bin 2 $1,700

2005 Honda Civic Hybrid (manual 5-speed) Bin 2 $1,700

2005 Honda Civic Hybrid (lean burn, automatic) Bin 9 $0

2005 Honda Civic Hybrid (lean burn, manual 5-speed) Bin 9 $0

2006 Honda Civic Hybrid Bin 2 $2,100

2005 Honda Accord Hybrid Bin 5 $650

2005 Ford Escape Hybrid (front wheel drive) Bin 4 $2,600

2005 Ford Escape Hybrid (four wheel drive) Bin 4 $1,950

2006 Mercury Mariner Hybrid (four wheel drive) Bin 5 $1,950

2006 Toyota Highlander Hybrid (front wheel drive) Bin 3 $1,950

2006 Toyota Highlander Hybrid (four wheel drive) Bin 3 $2,200

2006 Lexus RX-400h (four wheel drive) Bin 3 $2,200


Sorry, I tried like hell, but couldn't get the table to format correctly in the post.[/QUOTE]

 

Here is the link at the Honda website and a quote, but it is about the 2005 tax break.
I had to type in "hybrid tax break" in Honda's search window to find this page, not sure why they are not highlighting it.

http://automobiles.honda.com/models/...e=Civic+Hybrid


Three Honda Hybrid Vehicles Receive Certification for Clean-Fuel Deduction
2005 Accord Hybrid joins the Civic Hybrid and Insight

Downloads

Text only
2005IRSDeduction.doc 40k

Torrance, Calif. 02/09/2005 -- American Honda Motor Co., Inc. today announced that the Accord Hybrid, Civic Hybrid and Insight vehicles have received certification from the Internal Revenue Service (IRS) that makes them eligible for a clean-fuel deduction, entitling purchasers of eligible vehicles to make a one-time $2,000 tax deduction on their tax return.

According to the recently signed Working Families Relief Act of 2004, the one-time deduction must be taken in the year in which the vehicle is used for the first time. It was designed to encourage the purchase and use of vehicles using low emission and high fuel efficiency technologies. The $2,000 deduction applies to original purchases of eligible vehicles made in the 2004 and 2005 calendar year, and is scheduled to decrease to $500 for the 2006 calendar year. The IRS had previously certified the Insight (2000-2004) and the Civic Hybrid (2003-2004).

In December 2004, Honda demonstrated its leadership in hybrid vehicle technology with the introduction of the Accord Hybrid, the world's first V-6 hybrid and the first hybrid vehicle to deliver both improved fuel economy and increased performance. The Accord Hybrid is Honda's third hybrid vehicle, following the introduction in December 1999 of the two-passenger Insight, the first hybrid sold in America and the most fuel-efficient car in America for six years running. In 2002, Honda added to its hybrid family with the introduction of the Civic Hybrid, a hybrid version of America's best selling small car.

# # #

For more information or downloadable high-resolution images of the Honda Accord Hybrid and other Honda vehicles, please visit www.hondanews.com. Consumer information is available at www.hondacars.com.

Roland

 

Apparently not. It's a credit, like a coupon. You don't get it back. The proposed GA state tax credit is worded differently, though, and specifically says that any portion of the ($5k!) credit that is unused can be used later over five years, so since I rarely owe $1k state taxes, I can get all my money back for the next five years. Hell, once it starts kicking in, I'm changing my deductions so that I pay no state taxes. I'd rather have the money myself.

 

While I agree that it is harder to get a 25% improvement out of a higher mileage car, from the tax fairness standpoint I believe the credit is fair.

If you look at this from a consumption model a 25% improvement for a lower mileage vehicle will actually save MORE gas than a 25% improvement in a high mileage vehicle.

Example

A 25% improvement in a 40 mpg vehicle takes it to 50 mpg. The 40 mpg vehicle will use 25 gallons of gas to go 1000 miles. By improving mpg to 50 mpg it will now use 20 gallons to go 1000 miles, for a total savings of 5 gallons.

On the other hand

A 25% improvement in 20 mpg vehicle takes it to 25 mpg. The 20 mpg vehicle will use 50 gallons of gas to 1000 miles. By improving mpg to 25 mpg it will now use 40 gallons to go 1000 miles for a total savings of 10 gallons.

In reality the 25% improvement for the 20 mpg vehicle saves double the amount of gas as improving the 40 mpg vehicle by 25%

If the intent of the tax break is to promote a reduction in gasoline consumption, then you should offer a higher tax break on the vehicle that saves the most amount of gas.

 

"If she weighs the same as a duck, she's made of wood."
"And therefore..."
"... A witch!"

Chilly has just demonstrated that, logically, by the consumption model a Highlander should get more tax credits than a Prius. So, if Hummer came out with an H4 that got 4mpg, then next year improved that performance to 5pmg, since they're saving 50 gallons of gas every 1,000 miles their tax credit should pretty much pay for the vehicle, right?

Chilly sees the problem here, but I'm not sure everyone else does. It's not a matter of reducing the consumption of ONE MODEL, but rather OVERALL consumption. Don't compare 25 gallons to 20 and 50 gallons to 40. Use the final numbers of two DIFFERENT vehicles and compare 20 gallons to 40 gallons.