I really want to get a hybrid but I can't afford a new one. Do I still get a tax break if I buy a used one before the end of the year?
2007-11-20 11:48:08 · 4 answers · asked by beni1015 2 in Cars & Transportation ➔ Buying & Selling
No you do not.
The federal tax incentives are available only to the first owners of a NEW hybrid vehicle.
A pre-owned hybrid vehicle has already used an incentive by the first owner , & they won't pay out twice on the same vehicle.
ps- it is pretty hard to find a pre-owned one anyway.
most owners are relishing in their fuel savings & are not trading them in or selling them these days.
Considering the tax & fuel savings that you would receive, you may be able to afford the new one.
Remember to take that into consideration.
Hypothetically...If you currently spend $200 a month on fuel, and a hybrid saves you half of that...... you may be able to make a higher monthly payment than you thought...
2007-11-22 03:33:56 · answer #1 · answered by Vicky 7 · 1⤊ 0⤋
No. You get the tax break if you buy a new car from the manufacturer. In fact, the tax break is being phased out by manufacturer. As each manufacturer hits a certain threshold of the number of hybrids it has sold.....then the company's buyers will no longer be able to claim the credit. This may have already happened to Toyota and is getting close for Honda.
2016-05-24 09:23:12 · answer #2 · answered by madeleine 3 · 0⤊ 0⤋
Any serious government proposal about encouraging consumers to buy hybrids, plug-in hybrids, electric cars, or flex-fuel vehicles via tax credits must consider the effects of the AMT.
A few AMT rules-of-thumb:
If you owed AMT in the past, you are likely to pay it again.
The larger your family, the harder it is to escape the AMT.
Homeowners with incomes between $150,000 and $400,000 are very likely to be subject to AMT.
Residents of California, New York, and any other state that charges state income tax are more likely to fall into the AMT bucket.
The exceptions:
Single people earning between about $25,000 and $115,000 should escape AMT, and therefore find the hybrid tax credit useful.
If you earn more than $750,000 per year, then your taxes are likely to exceed the AMT. The hybrid tax credit would be allowable.
These are rough guidelines. See a tax professional for detailed advice.
2007-11-20 11:54:23 · answer #3 · answered by loclemons 3 · 0⤊ 0⤋
you only get the tax breaks if you buy new. sorry
2007-11-20 12:07:57 · answer #4 · answered by jeff g 2 · 0⤊ 0⤋