Go Green and Save Money With Hybrid Cars Tax Credit 2011
President George W. Bush signed the Energy Policy Act of 2005, which considerably changed the energy policy of in the United States. As a measure to promote the use of energy-efficient and environment-friendly sources of energy, the government offered several incentives to the people as a part of the bill. The hybrid cars tax credit was a part of the said act. However, some changes regarding the credits had been introduced in the year 2013. The facts and information provided below comply with the information provided by the IRS.
The Hybrid Car Tax Credit 2011
- The basic intention of the act was to promote the use of fuel-efficient vehicles and energy resources.
- The best way to encourage such a widespread use of vehicles is to provide some kind of incentive to the people. In this case, the act empowered the IRS to provide a tax credit to the people in cases where they purchased some specified hybrid vehicles.
- A tax credit is basically a provision where the tax filer would not have to pay tax worth the tax credit for the next year, very much like a prepaid tax. In some cases, a rebate or a refund would be provided to the income tax filers.
- A hybrid vehicle is an automobile that works on two mechanisms, namely, an internal combustible engine, and a battery operated motor. Apart from that, these cars are fitted with a certain mechanism wherein unused mechanical and kinetic energy is transformed into electrical energy and is stored into the battery which in turn, is used for motor propulsion.
- The car thus, saves a high volume of energy, and more importantly, fuel. It also does not cause any pollution in the process.
Provisions Regarding Hybrid Cars Tax Credit 2011
- As per the provisions of the act, the IRS would release a list of vehicles for all applicable years. The people who purchased the vehicles in these years would receive the aforementioned tax credit or tax rebate.
- The time limit for the tax credit was December 31st, 2010. That is, any vehicle purchased before the date would become a valid ground for a tax credit.
- The act and the IRS have made certain provision for the vehicles to be released in 2011. The condition is that the vehicle, should be procured (paid for) in 2010; yet, it can be model for 2011, and the actual custody of the vehicle can be taken in 2011.
- The IRS had also put forth a list of models that it recognizes as 2011 models and a valid ground for a tax credit.
- A very important condition, however, is that the credits will not be applicable once the manufacturer sells 200,000 cars/vehicles.
- The provisions remain the same, though the IRS has introduced some changes in the values of the tax credits in 2013.
Tax Credits for Hybrid Cars – Present
- As of 2015, the IRS states similar conditions for hybrid vehicles to qualify for tax credit.
- The vehicle has to be made by a legal, licensed manufacturer, must have a gross vehicle weight rating (GVWR) of 14,000 pounds (or less), must have a battery of 4 kWh, etc.
- The vehicle must be acquired before the end of 2010.
- The credits phase out after 200,000 models of the vehicles have been sold.
- To be more precise, you could get credit – provided – the car is IRS-qualified (is present in the list), the manufacturer has not yet managed to sell 200,000 cars of that model, and he has procured it prior to 2011.
- Another point you need to remember is that these credits are non-refundable; you can claim them only if your tax liability is more than USD 7500.
Recognized Hybrid Cars
The following is a list of cars that are valid for tax credit for hybrid cars 2011. These cars are qualified by the IRS and the models not included in the said list are not valid for the credit.
