There are many reasons why we should drive as little as possible. One of the most compelling for most drivers is that it is getting increasingly expensive. Gas prices have been fluctuating severely in recent years, but on the whole they have experienced an upward trend. This is one of the many reasons that hybrid vehicles have been receiving so much press.
Hybrids are designed to be much easier on gas than regular vehicles. This is accomplished by pairing an internal combustion engine with a rechargeable battery. The result is fuel efficiency that is currently, on average, in excess of 40 miles per gallon.
But this added fuel efficiency comes at a price. Hybrid vehicle prices run a few thousand dollars higher than their internal combustion-only counterparts. The Energy Policy Act of 2005 provided for tax credits to offset a portion of the added expense, but they have been largely phased out.
But there are certain other savings that you can realize by owning a hybrid. These include the following:
The need for less gas translates into saved money. The amount saved depends on the price of gas at any given point in time. But with hybrids getting an average of 50% more mileage out of the same amount of gas in a regular vehicle, it adds up to much more than pocket change.
In some states, you can get a state income tax credit for hybrids. This won’t be as much as the federal credit, but it’s certainly worth checking into. You can get more information from your state’s Department of Revenue.
Some states offer other incentives for those who buy hybrids. Some charge sales tax at a lower rate on hybrids, which can save you a significant amount of money up front. Some also offer lower registration fees.
Some cities, hotels and schools provide free or discounted parking for hybrids. Depending on the location, this could save you a great deal of money each month.
Even employers are jumping on the hybrid incentive bandwagon. Some, including Google and Bank of America, have offered cash back to employees who purchase a hybrid vehicle.
In some areas, hybrid owners are allowed to drive in the carpool lane even if there is only one person in the vehicle. Not only is this a nice added convenience, it can also save even more gas.
If you’re relying on increased gas mileage alone to offset the cost of your hybrid, you could possibly be disappointed. But with the other savings you might qualify for, owning a hybrid could be very cost-effective. And remember, cost isn’t the only factor when buying a hybrid. The lower impact you’ll have on the environment and its natural resources are priceless.
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There has been a lot of talk in recent years about alternative fuel. With the supply of oil dwindling, the government has begun to offer incentives to those who choose to use energy from other sources. One such incentive is the Alternative Motor Vehicle Credit.
This credit came about as part of the Energy Policy Act of 2005. It was designed to offset the cost of vehicles that operate using alternative fuel sources. These vehicles are becoming more widely available, but their cost has been prohibitive to many consumers who would like to purchase them.
Credits are available for four different types of vehicles:
1. Hybrids ? These vehicles have engines that use both an internal combustion engine and a rechargeable battery. They use some gasoline, but they get much better gas mileage than solely gas-powered vehicles.
The credit for this category is phased out after the fifth quarter following the quarter in which each manufacturer sells its 60,000th hybrid. Ask your dealer to find out how much of a credit the hybrid you are considering qualifies for.
2. Fuel Cell Vehicles ? Fuel cells are unique in that they convert chemical energy into electricity. In most cases, the chemicals used are hydrogen and oxygen. This produces no by-products except for water and heat.
The credit allowed for these vehicles depends on the gross vehicle weight. Passenger automobiles and light trucks also qualify for an additional amount based on fuel economy.
3. Qualified Alternative Fuel Motor Vehicles and Heavy Hybrids ? This is the only category that allows vehicles that have been converted from traditional fuel to alternative fuel. There are several types of fuel that can be used, including compressed or liquefied natural gas, propane and hydrogen. Liquefied natural gas and propane may be mixed with gasoline in these vehicles.
4. Advanced Lean-Burn Technology Vehicles ? These vehicles have a special internal combustion engine that uses more air than is necessary for combustion of fuel. They must also have direct fuel injection and have a minimum of 125% of the 2002 fuel economy rating.
The credit for this type of vehicle is based on fuel economy compared to that of the 2002 model year. Buyers also qualify for an additional credit that is figured based on lifetime fuel savings.
In order for their vehicles to qualify for the Alternative Motor Vehicle Credit, manufacturers must adhere to strict government guidelines. Your dealer should be able to tell you whether a specific model is eligible. The IRS also maintains a list of vehicles eligible for the credit on its website.
Buying an alternative fuel vehicle is good for the environment, and it saves natural resources. And now you can get a sizable tax credit for the tax year in which you purchase one. If you’ve ever considered buying an alternative fuel vehicle, now is the time to get serious about it.
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For more great content, remember to subscribe to my RSS feed. Subscribe
There has been a lot of talk in recent years about alternative fuel. With the supply of oil dwindling, the government has begun to offer incentives to those who choose to use energy from other sources. One such incentive is the Alternative Motor Vehicle Credit.
This credit came about as part of the Energy Policy Act of 2005. It was designed to offset the cost of vehicles that operate using alternative fuel sources. These vehicles are becoming more widely available, but their cost has been prohibitive to many consumers who would like to purchase them.
Credits are available for four different types of vehicles:
1. Hybrids ? These vehicles have engines that use both an internal combustion engine and a rechargeable battery. They use some gasoline, but they get much better gas mileage than solely gas-powered vehicles.
The credit for this category is phased out after the fifth quarter following the quarter in which each manufacturer sells its 60,000th hybrid. Ask your dealer to find out how much of a credit the hybrid you are considering qualifies for.
2. Fuel Cell Vehicles ? Fuel cells are unique in that they convert chemical energy into electricity. In most cases, the chemicals used are hydrogen and oxygen. This produces no by-products except for water and heat.
The credit allowed for these vehicles depends on the gross vehicle weight. Passenger automobiles and light trucks also qualify for an additional amount based on fuel economy.
3. Qualified Alternative Fuel Motor Vehicles and Heavy Hybrids ? This is the only category that allows vehicles that have been converted from traditional fuel to alternative fuel. There are several types of fuel that can be used, including compressed or liquefied natural gas, propane and hydrogen. Liquefied natural gas and propane may be mixed with gasoline in these vehicles.
4. Advanced Lean-Burn Technology Vehicles ? These vehicles have a special internal combustion engine that uses more air than is necessary for combustion of fuel. They must also have direct fuel injection and have a minimum of 125% of the 2002 fuel economy rating.
The credit for this type of vehicle is based on fuel economy compared to that of the 2002 model year. Buyers also qualify for an additional credit that is figured based on lifetime fuel savings.
In order for their vehicles to qualify for the Alternative Motor Vehicle Credit, manufacturers must adhere to strict government guidelines. Your dealer should be able to tell you whether a specific model is eligible. The IRS also maintains a list of vehicles eligible for the credit on its website.
Buying an alternative fuel vehicle is good for the environment, and it saves natural resources. And now you can get a sizable tax credit for the tax year in which you purchase one. If you’ve ever considered buying an alternative fuel vehicle, now is the time to get serious about it.
Related Blogs
For more great content, remember to subscribe to my RSS feed. Subscribe
