2007-09-15 07:50:49 · 3 answers · asked by yakngirl 5 in Business & Finance ➔ Taxes ➔ United States
It's a credit so it directly reduces your tax liability whether you itemize or not.
Keep a couple of things in mind, however. It's limited to a certain production run by each manufacturer. The credits for the Toyota Prius have long run out, for example, because the model is so popular. The other issue is that it's a non-refundable credit, so once your tax liability reaches $0, it's worth nothing more to you.
In most cases, hybrid vehicles are not worth the cost even with the credit taken into consideration. The excess cost of most models would take 8 to 10 years to pay off with the fuel savings.
2007-09-15 08:42:00 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 1⤋
there could choose to right be a State tax credit on your state. The Federal tax credit ran out for the Prius years interior the previous. because of the fact the third suited merchandising motorcar so far this 12 months, that hasn't regarded to have stopped each and every individual from procuring one.
2016-11-15 07:39:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes, the tax credit is totally independent of whether you take the standard deduction or you itemize.
2007-09-15 09:42:44 · answer #3 · answered by Anonymous · 2⤊ 0⤋