Alternate Fuel Cars

Wasn't there a tax credit similar to that until just recently?

Why do you propose lowering the current US Federal tax credits for AFVs?

How about $4,000? That's the average tax break on a Prius or Honda Hybrid...

When?

Hybrids are not alternate fuel cars. They burn gasoline, just like my Contour.

Jeff

Why in the world do you think the US government should take money from one taxpayer like you, who may not even be in a position to buy a new car or properly maintain their used car, and give it to another taxpayer to buy a ANY vehicle that burns a fuel that is already heavily subsided, let alone one made in another county, like the Pruis by a company like Toyota, that does not pay a penny in US Corporate taxes? ;)

It was around $3000 (depending on model) but later reduced to about $1500 where it stands (on a Prius anyway) until April. The Escape/Mariner hybrid still has a $3000 credit, $2200 for 4WD. The federal income tax credit on a Chevy Silverado 2WD hybrid is a whopping $250.

Our $1575 Prius credit was reduced by AMT to around $1300! No doubt due to some boneheaded move by Congress. But I repeat myself.

So, are you suggesting that we should end the subsidies on gasoline?

And what exactly, are the subsidies you are talking about?

For income tax, don't the Toyota subsidies pay US income tax and state income tax on the net income the sunsidies make? Those are US companies, but owned by Toyota.

Jeff

Ya know, for once Mike makes sense...

I think that's what it was when the tax breaks first went into effect, and the Prius and the Insight were the only models eligible for it.

$4000 is the cap for the alt fuel/hybrid tax credit available for

2006, with the actual amount depending on what vehicle, model year, and date that you purchased your vehicle. (For previous years, it was a cap of $2000 for a tax deduction.) See: But the OP was asking about Alt Fuel vehicles. Currently that's just the Honda Civic GX, which gets the max available $4000 credit. There's probably some other modified cars or low-production cars that may also qualify... quoting from: To be eligible for this tax credit, the vehicle must only be capable of operating on any of the following alternative fuels:

Compressed natural gas (CNG) Liquefied natural gas (LNG) Liquefied petroleum gas (LPG) Hydrogen Any liquid at least 85% methanol by volume

Note that flex-fuel (E85) and bi-fuel vehicles do not qualify.

Electric Vehicles do qualify, though, with certain other restrictions.

Okay, $1,000 in addition to current tax credits!

I understand that the U.S. provides tax breaks to oil companies.

Why should government get do that? They'll probably just subsidize corn growers (and Archer-Daniels-Midland) and not cut our dependence on foreign energy one bit.

But ADM supports public television!

And Meet the dePRESSed...

Yeah, that sounds about right. Take the money from the people trying to make a difference, and give it to ADM to bury.

It wouldn't surprize me if they gave it to Exxon=Mobil who would then in turn USE it to bury ADM..."You don't really want to develop grain based fuel now, do you?"

I love America. It's politics I hate... ;)

I pretty much always make sense, it is just that you do not always agree. ;)

mike

There was limit on the total number of vehicle that could be eligible for the full refund. I went to a lowered amount at a predetermined level as well. If memory serves the total was 90K for any manufacture. Since those that sold them sooner reach the statutory limit sooner.

mike

A common misconception, at tax break is not a tax credit. One can only equate to two if they do not understand US tax laws. Allowing a company to accelerate deprecation of a depreciating asset is far different than giving out tax money.

I E one has a 5,000 asset that must be depreciated over five years. That means one need not pay taxes, at their particular rate, on 1,000 each year for five years. When one is allowed to chose an accelerated depreciation to increase capital for investment they can take a tax deduction, at their particular rate, in one year off 80% of the assets value rather than 100%.. The result is the taxpayer get a lower but faster deprecation, but must pay taxes on another $1,000, at their particular rate, for the next four years. The federal treasury gets less money the first year, does not give away any money as they do what a tax credit and they get more money, not less, over the same five years.

A prime example of how lowering tax RATES can produce more money to the US treasury, are the tax RATE cuts under President Bush. Currently the US treasury is taking in MORE money than it spends and at a rate that is the highest in the history or the county, regardless of what his distracters would have you believe.

A tax credit on the other hand is a dollar for dollar reduction in ones tax due that you pass on to the seller in the form of a much higher price for the hybrid. The other is a reduction on the amount of income on which one pays income taxes, at there particular rate.. I E An exemption for a child and a child tax credit.

Giving buyers a deduction off income would be better, YOU would actually get a reduction in your tax due, at your particular rate, rather that giving tax dollars to the manufactures. .

mike