Hybrid Car Review

Ford Fusion Hybrid Tax Credits Going, Going, Gone... (Photo from Flickr)

The federal tax credits set for those who buy a Ford (or Mercury) Hybrid are about to expire on April 1. The federal tax credit for hybrid cars was set to help each auto manufacturer launch their hybrids. But since it was clear that Toyota had a big lead on hybrid technology, a 60,000 limit was set for each manufacturer.

There was no limit on the type of vehicle, so the 2010 Ford Fusion and Mercury Milan Hybrids were eligible for the tax credit when they launched.

The quarter after the company sold over 60,000 hybrid cars, the step down period would begin. After two quarters, the tax credit would be cut in half. After two more quarters, the credit was cut in half again. And then it would be gone.

Ford, like Toyota and Honda before them, has reached the end of the road. It can be argued that the tax credit for hybrid cars is no longer needed, but it certainly helped kick them off.  Just as it's going to help kick the electric vehicle (and E-REV) market into gear.