Q&A: Hey accountants, do you have information about any tax benefits to buying a hybrid american automobile?
Question by koalatcomics: Hey accountants, do you have information about any tax benefits to buying a hybrid american automobile?
I am considering buying a new hybrid Chevy Malibu, when they become available in the spring. Do you have any information about what the 2008 federal and state (Ohio) benefits may be, if any, to buying a hybrid vehicle. If there are could you direct me to any website or link for more information. When spending that amount of money everything figures into a purchase and we were curious about the tax benefits if any to buying energy aware.
Best answer:
Answer by Gary
Just check the IRS web site at irs.gov
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The Malibu qualifies for a $ 1,300 credit at present. Compare that to your increased cost and adjust for any projected fuel savings. In most cases you’ll probably discover that the modest savings are not worth the added expense.
Also bear in mind that the credit cannot reduce your tax liability to less than zero as it is not a refundable credit.
Here’s a link to the site: http://www.fueleconomy.gov/feg/tax_hybrid.shtml
The other wild card is that you must not be subject to AMT. I’ve dealt with a number of tax payers who didn’t realize how close they were to paying AMT until they tried to claim this credit. Instead of getting the full amount they’d planned on, they got a smaller amount.