Good news for people who buy hybrids next year in South Carolina. Between the federal tax credit and the possible state credit, you could be looking at some significant savings!
The State | 12/13/2005 | Bill would help hybrid-car owners:
Bill would help hybrid-car owners
Tax credits would be higher for those using alternative fuel sources
By JIM DuPLESSIS
A proposed state tax credit could save you hundreds if you buy a car propelled by something other than just gasoline.
S.C. House Majority Leader Jim Merrill, R-Charleston, has drafted a bill to extend a federal tax credit to the state level for cars powered by hybrid and alternative-fuel engines.
If enacted, the state income tax credit would be 20 percent of the federal income tax credit for low-polluting cars fueled by diesel, natural gas or a hybrid, such as those pairing gasoline engines with battery-powered motors.
“With the spike in gasoline prices, it became pretty much a no-brainer to encourage hybrid usage if we could reduce our dependence on gas and oil,” Merrill said.
A buyer of a Toyota Prius gasoline-electric hybrid in 2006 would receive the highest credits: $3,150 federal and $630 state, or a total of $3,780, according to estimates from the American Council for an Energy-Efficient Economy.
The smallest credits would be for buyers of a Chevrolet Silverado or GMC Sierra hybrid: $250 federal and $50 state.
Merrill said he began considering the bill in spring 2004, drafted it last summer, and prefiled the bill in November. It has been referred to the House Ways and Means Committee.
The state must conduct a study to estimate how much the credit would reduce state tax revenues, but Merrill expects it will be minimal.