As 2006 goes on, the IRS is in the process of giving certain hybrid vehicles tax credit amounts. A number of GM cars just got their prices from the agency.
The IRS gives out tax credits for GM trucks.
As part of the Energy Policy Act of 2005, the tax benefits of owning a hybrid vehicle have been greatly improved. Before the Act, a person who bought a vehicle like this could get a tax break of up to $2,000. This was nice, but the new Act changed the deduction into a tax credit. Tax credits are much better than tax deductions because they reduce the amount of tax you owe instead of the amount of money you earn.
The IRS is going through different hybrid models and figuring out how much tax credit can be claimed for each one until 2006. Honda, Toyota, Ford, Lexus, and almost every other car in the class are among the brands. On July 11, 2006, the IRS announced that hybrid trucks made by General Motors were eligible for tax credits.
Now, if you buy a new GM hybrid truck, you can get a tax credit when you file your taxes. Here are the types of cars and the amount of tax credit that can be claimed:
- A hybrid 2006 GMC Sierra pickup truck with two wheels drive costs $250.
- A hybrid 2006 GMC Sierra (4WD) pick-up truck costs $650.
- A 2007 Chevrolet Silverado hybrid pickup truck with four-wheel drive costs $650.
- A hybrid 2007 Chevrolet Silverado (2WD) pick-up truck will cost you $250.
- A 2006 Chevrolet Silverado hybrid pickup truck with four-wheel drive costs $650.
- A hybrid 2007 GMC Sierra (4WD) pick-up truck costs $650.
- A hybrid 2006 Chevrolet Silverado (2WD) pickup truck will cost you $250.
- A hybrid 2007 GMC Sierra pickup truck with two wheels drive costs $250.
To get the tax credit, you must buy one of the vehicles listed above from a dealer after January 1, 2006. Also, the car must be brand new and not used. As a side note, the tax credit amount will go down after the 60,000th model is sold, so if you are thinking about buying one of these cars, you might want to do so now.
When it comes time to file your taxes, tax credits for buying a hybrid are a huge help. Since the amount of the tax credit is taken right off of what you owe, it can lead to some very nice refunds.
