Tax credits and hybrids

Attention all of you green machine buyers past and future. There's a good article on the Consumer reports Auto Blog about the faze out of tax credits for hybrid vehicles.

Disappearing act
The 2006 tax credit size depended on a vehicle’s estimated fuel economy. While a Toyota Prius was eligible for a credit of $3,150, a four-wheel-drive Ford Escape Hybrid qualified for only  $1,950, and a two-wheel-drive Chevrolet Silverado Hybrid got only a token $250. more...

I can only speak to the popularity of Toyota's hybrid vehicles, the 2007 Camry, Highlander and of course the Prius.  They have been HOT. I don't think the disappearance of the tax incentives will greatly affect sales of these things. We'll see in the next six months or so.

Comments

[Desking tool]

As it stands now, buyers of plug-in hybrids and electric cars benefit from a tax credit of $2,500 to $7,500, depending on the size of the battery in the car. On the low end of the spectrum, cars with 4 kWh battery packs will qualify for a $2,500 tax credit. The credit maxes out at $7,500 for cars with a 16 kWh battery pack, like the Chevy Volt.

[CGS intake]

But as recent history has shown, consumers prioritize fuel efficiency much more when it pays immediate and noticeable returns to their transportation budgets. The lower gas prices fall, the less drivers will look to high-MPG stars like the Toyota Prius or Honda Civic Hybrid to help them stem the tide at the pump.