Car buyers wanting to take advantage of instant money from the hybrid vehicle tax rebate had better act fast. The tax rebate on most hybrid cars and trucks, and on some diesels, is expiring in January 2011. Tax credits do remain for some plug-in vehicles, though.
Tax rebate for green cars to expire
In 2005, the government rolled out a new tax credit that promised instant money at tax time if a person purchased a hybrid car or certain diesel powered vehicles as part of the Energy Policy Act of 2005. The Alternative Motor Vehicle Credit, for those who could or did take advantage of it, offered a great incentive to consult a loan company to finance a greener car. However, according to USA Today, that incentive is expiring. As of January 2011, there won’t be a break on the income tax bill for buying a hybrid car like the uber-popular Toyota Prius or eligible diesel models such as a Volkswagen Jetta TDI.
Some rebates still available
Though the bulk of the rebates are expiring, there are some that will still be available. Tax rebates will still be available for plug-in electric vehicles, such as the Chevrolet Volt and the Nissan Leaf. The hitch, though, is that to get those vehicles, a person has to get a personal loan for a lot more. The Leaf lists for $32,000 or more before any instant cash off the tax bill, and the Volt goes for about $40,000 before the rebate. The Prius, by contrast, goes for less than $25,000, although the Prius is no longer eligible for a rebate. Part of the bill was that once a car maker had sold 60,000 green vehicles, the rebate would no longer be available.
Better act fast
There are still some rebates available on some hybrid or diesel models, but only two weeks remain for the credit to be used. There is a list on USA Today and Consumer Reports of which vehicles are eligible for a rebate until Jan. 1, 2011.