There are some tax advantages to owning a hybrid, some have come and gone and others are on their way.
Because of this relatively new and ever-changing technology, the tax advantages are also ever changing from year to year.
State Tax Advantages Depending on which state you live in, you may find tax advantages via the state.
Check with your states website to see if you qualify for a state tax break for owning a hybrid car.
Some states offer lower annual and excise car taxes for hybrid cars.
The amount of this credit is most often calculated by the weight of the vehicle.
he lower weight of a car is less wear on the highways, saving the state in taxes to repair the roadways.
This is one reason the states are allowed to offer a state tax credit.
Because so much of this varies state by state, please check with your state government to learn which tax breaks for hybrid autos are offered in your home state.
Federal Tax Advantages 2010 brought the end to the tax credit advantages for electric-gas vehicles.
This was said to be put into place back in 2005 to help speed up the research for this new technology, but now this technology is pretty much old hat.
Instead, there are now federal tax advantages for those purchasing hybrid plug-in cars.
Currently there is a tax credit of between $2,500 and $7,500.
The amount is derived from the battery capacity, having a minimum of 4 kilowatt hours.
In addition, the cars weight cannot exceed 14,000 pounds in order to receive the tax credit.
It is also stated that this tax credit is due to expire at the end of 2011.
In addition, some states provide a sticker for hybrid cars, which allows you to drive through pay-tolls or pay-based HOV lanes.
This could amount to a large savings if you drive toll roads to and from work.
There are future advantages to owning a hybrid car on the drawing board.
One rumored is that the Federal Government may be offering a $7,500 savings as a rebate at the time of purchase.
It is clear this is a topic to pay close attention to as things are ever-changing when it comes to tax advantages for a hybrid car on the Federal level.
Local Advantages There are other advantages to owning a hybrid that come from the local level.
Some cities offer free parking for hybrid cars.
This could amount to a large savings if you are someone that pays for parking 5 or 6 days a week.
This advantage varies immensely depending on where you live.
It is best to check with your city government and see what your options are.
Another possible source of benefits would be your local hybrid car dealership and your tax account.