Hybrid Car Review

All Honda hybrid cars got their federal tax credit halved today.  After passing the 60,000 limit on hybrid cars sold last year, Honda hybrids passed into the phase out period.  Every two quarters, the federal tax credit offered to those who buy hybrid cars from Honda is halved. 

If you bought your hybrid car from Honda before Jan 1, 2008, you would be eligible to claim the full tax credit (if you qualified for it).  From Jan 1, 2008 to June 30, 2008, you were eligible for half the credit.  From today, July 1, 2008 to Dec 31, 2008, you are eligible for one-fourth of the credit.  After that, the credit will be gone.

The total credit amount depends on when you buy, the model and year of the car, and how many hybrid cars the manufacturer has sold.  Those who buy used are not eligible, neither are leased vehicles. 

Toyota tax credits were already phased out.  Ford, Nissan and GM have not passed over the 60,000 limit, and so have not triggered the phase out period.

Read up on all the details about the federal tax credit on hybrid cars, what forms you need, how much you can claim, and whether you can qualify by following the link.