Relevant Details on the Obama Administration’s Stimulus Package Tax Credit For Hybrid Vehicles

President Obama’s stimulus bill, which is also referred to as the American Recovery and Reinvestment Act of 2009, enables us to claim certain benefits for hybrid vehicles. More specifically, Hybrid vehicles are offered a tax credit as per the stimulus package. All vehicles purchased from the year 2006 are eligible for the hybrid vehicle tax credit. The following includes some of the details of of the stimulus package.

Note that the best person to guide you effectively in this aspect is your tax consultant. Choose a good consultant and check out all possible details before filing your returns. You can also go online and read reviews, analysis and reports on the stimulus tax credit for hybrid vehicles to find more details.

The credit amount depends on multiple factors:

First, you must be the owner of extended range electric vehicles or plug in hybrids. Your hybrid model has drive trains which are powered by both rechargeable batteries and internal combustion engine.

Second, your eligibility depends on the vehicle model and the state where it was purchased. This scheme is also known as the Alternative Motor Vehicle Credit and all vehicles purchased after 1st January 2006 are eligible for this.

Third, if your hybrid vehicle was on road in the year 2008 and you are a taxpayer, then you can certainly claim credit. However, according to the stimulus package, credit will be given only to those who are the actual owners of the hybrid vehicles and not for those who have purchased the vehicle on a resale in the year 2008.

Fourth, the vehicle size and battery pack also plays a role in determining your eligibility for tax credit in the plug-in hybrid range. If you own a Chevy Volt, you should get a credit somewhere around $7,500 if you qualify. If you own a plug-in truck you may even be eligible for credit that can be as high as $15,000.

Finally, if your vehicle is extremely fuel efficient, you may even be eligible for credit worth $3,000.

In addition, there are other factors to consider:

  • Credits will be given to new hybrid vehicles (those models which came out last year). The limit for a manufacturer is 60,000 vehicles. After this number of vehicles is sold, the available credit starts coming down until it is completely eliminated. Vehicle owners must wait for the manufacturer to reach the sales limit and file before the end of third month following the quarter.
  • The manufacturing company is not an eligibility criterion and as of now around 500,000 vehicles are eligible for tax credits.

It is also worth noting that there are other benefits offered in this package, including a $2 billion grant for manufacturing and development in the battery sector. A tax paying buyer who goes in for vehicle conversion will be eligible for up to 10% of the conversion price or a maximum of $4,000.

In conclusion, whether you own a hybrid vehicle, or if you are planning on buying a new hybrid car, you may be pleasantly surprised to find a deduction in your local sales tax and auto loans.

Are Hybrid Vehicles a Safe and Practical Choice?

Hybrid cars are quickly becoming a popular choice in transportation based in part on their better gas mileage and lower impact on the environment. In fact, their popularity can be seen as I drove around looking at Capitola condos; chances are you’ll see a few driving around. Just as with any other new vehicle, though, there are potential safety concerns. The next few paragraphs will detail some of the safety concerns associated with this relatively new technology, and will hopefully help you decide if the practicality of hybrid cars is worth the investment.

Truth be told, the fact that hybrids run on both gasoline and electricity has no real bearing on their safety. Each individual hybrid car has been tested time and time again by various accident rating institutions such as the National Highway Traffic Safety Association, and Safe Car. Many of the hybrid cars are smaller in size, more maneuverable, and more able to avoid collisions. They also rank relatively high in safety ratings for vehicles in their weight class. Their safety, overall size, and fuel economy make them a great choice for visiting a few of the homes featured at a Capitola real estate broker.

It should be noted, however, that hybrid vehicles do present some unique potential hazards when they are involved in an accident or when they need to be repaired. However, by understanding them, and taking some commonsense precautions, the risks can be minimized. The first potential hazard to consider is that the high voltage hybrid battery and the vehicle’s power train components create a shock hazard. While there is no confirmed record of a person being electrocuted while servicing a hybrid, certain precautions must be taken.

Hybrid vehicles by their very nature contain high voltage electronics. Because of this potential safety concern, high voltage cables and parts are usually color coded to warn of the potential danger. Unless the battery is disconnected, these cables should be avoided. As for the batteries themselves, all hybrid vehicle batteries have a safety switch or a quick disconnect mechanism. It is these and other safety protocols that have been instigated by hybrid car companies to ensure the safety of their clients, rescue workers, and mechanics. This is not a job for the back yard mechanic who lives in a Capitola condominium.

Of course, those who drive, repair or rescue accident victims are not the only people that should be considered when it comes to hybrid safety. Bystanders and pedestrians are also an important consideration. For many of them, one of the perceived advantages of hybrid cars could cause a potential danger. Hybrids cars are extremely quiet on the road. This lack of sound makes their approach fairly unnoticeable, especially by those with vision impairment. Thankfully, there are some industry insiders are trying to create technology to slightly increase the sound of the hybrid engine, and is being developed by Lotus.

Hybrid cars are not only becoming more practical and affordable, but their safety is comparable to conventional vehicles of the same size class. Depending on your transportation needs, and financial status, a hybrid vehicle might be a great investment for you. Whether you buy a hybrid or a Capitola condo for frugal reasons, but have their places as investment in living a good life and being responsible.

The Worst Hybrid Vehicles

All things nice and everything nice, this phrase became associated with Hybrid vehicles. However, it was recently known that this statement might actually be not-so-true when information about some hybrid models that proved to be not-so-economical.

Chevrolet Tahoe 2-Mode Hybrid – Most consumers would have thought that when hybrid vehicles emerged into the market, it would be the very answer to every SUV owners’ fuel consumption dilemma. This belief gave a stronger effect when hybrid SUVs found their way into the market once more. Compared to standard SUV models, Chevrolet Tahoe boasts a 2-mode system allowing the vehicle to operate in 2-wheel and 4-wheel drive, gaining 40% improvement, at 20-21 miles per gallon. At a starting price of $50,490 MSRP, you could own this 2-Mode Hybrid baby. However, no matter how positive the modification can be with Chevrolet Tahoe, most consumers may not expect the same fuel economical benefits since this vehicle still cannot surpass nor even match the economic wise advantage of other hybrids can offer. While other hybrids continually amaze their owners for the gallon/mile consumption wonders, i.e., average of 50 miles per gallon, Chevrolet has evidently failed to pass the 2-Mode Hybrid as a cost-effective and ecologically-wise hybrid. With these factors in mind, prospective buyers should think it over first before investing on this hybrid. Would you still want a Major Brand of Vehicle, with a major deduction from your pockets?

Honda Accord Hybrid – How could you purchase a hybrid vehicle when they have not even passed their initial emission tests? This has been the case of Honda Accord Hybrid. In an attempt to modify the problems of the emissions unit, the model was temporarily retracted from the market by its makers. Unfortunately, despite Honda’s effort to regain the Accord’s hybrid image, the vehicle according to some reports in the internet, was said to have failed the emission test once again. Taking this into consideration, we should be well aware that a vehicle’s failure in emission test will cost you more money. First of all, the repair cost has to be shouldered by the owner, apart from this, there is also the cost to conduct the emission test once again. Three emission test failures mean you are in trouble – because it would mean that you will not be allowed to drive the vehicle legally. There is no sufficient info for consumers if Honda Accord Hybrid is still available in the market. Should you wish to check on their website homepage, prospective consumers find themselves looking at low-emissions Honda Coupe model, which is by the way a non-standard hybrid, when they search or click for a Hybrid models. A consumer must be very careful in the process of choosing Honda Accord Hybrid, especially with news such as non-passing of emission test for the first test still looms in the market.

Yes, we can be rest assured that most of the other hybrids available in the market have passed emission test in most of the states, and therefore are true to their name as hybrids. However, there will always be thorns among the roses, and these two hybrids are unfortunately considered as the thorns. Thorns in the ecological system as they have certainly failed the first stage of passing emission tests and thorns to the pocket of the poor consumers who have misleadingly invested for these type of vehicles without knowing the pros and cons.

If you are not yet one of those who have purchased these types of Hybrids, consider yourself lucky and now is the right time to exercise your right to choose. If fuel consumption and eco-awareness is one of the factors you have in mind in buying a Hybrid, then do your share of researching before investing on these vehicles. Remember, this is your money and it is indeed worthwhile to be extra careful before splashing out on these high-priced and yet, not-so-hybrids.