New Hybrid Cars - Tax Information You Need To Know

If you're considering buying a hybrid car or truck, you'll be happy to know that the U.S. government offers certain tax incentives for your purchase. The Energy Policy Act provides a tax credit for those who purchase certain energy efficient vehicles. Since that act passed, it's been up to auto manufacturers to certify to the Internal Revenue Service that certain passenger autos and light trucks qualify for the credit and the amount of the credit. All the consumer needs to do is check with their dealer. If the vehicle qualifies, the amount will be posted at the dealership, usually right on the vehicle itself.

As a buyer, you'll need to meet certain requirements in order to declare a tax credit on your return. The requirements are basic and straightforward. Here they are for your reference:

1. The vehicle must be placed in service after 12-31-05 and purchased on or before 12-31-10, and the original use of the vehicle must begin with the taxpayer claiming the credit.

2. The credit may only be claimed by the original owner of a new, qualifying hybrid vehicle. Used vehicles do not apply.

3. The vehicle must be acquired for use or lease by the taxpayer claiming the credit. You can't buy the car for someone else's use and claim the credit yourself.

4. The credit is only available to the original buyer. Leases don't count as buying. In a lease situation, the leasing company can claim the credit.

5. The vehicle must be used predominantly within the U.S.

Some Tax Credits Phasing Out

The hybrid vehicle tax credit begins to phase out when a manufacturer sells 60,000 qualifying vehicles. As an example, hybrid vehicles produced by Toyota Motor Sales USA qualify only for a lesser percentage of the tax credit. This applies to all hybrid vehicles sold by Toyota Motor Sales, which encompasses both Toyota and Lexus. Check with your dealer, but as of this writing most of these credits are 25% of the original amount.

Finally, when determining what year your tax credit can be applied, you'll need to consider the year in which the vehicle is placed into service. Let's use an example. Let's suppose you purchased a qualifying hybrid vehicle on December 27, 2007 and take possession on January 5, 2008. The amount of your eligible credit can be taken for the 2008 tax year.

The purpose of these tax cuts was designed to stimulate consumer purchase of hybrid vehicles. While we expect some level of tax incentive to remain, we also predict the amounts will lessen over time. The rationale appears to be that hybrid vehicles will be much more accepted over time, thereby negating the need for tax credits.

Are you considering purchasing a new hybrid vehicle? Before you buy, be sure to check out our hybrid car and truck resource site, complete with buying guides, recommendations, and everything you'll want to know when considering new hybrid cars.

By Jim Hofman

Hydrogen Water Car How To Plans - Is Water 4 Gas True?

The technology that cars can run on water has been around for almost a century now, but it has never been publicized. World leaders and big oil companies are suppressing it because it will seriously affect the demand for oil.

But, due to rising oil prices, more and more people are looking for fuel alternatives, and many have successfully converted their car to run on water. There are many guides available for download on the internet today that teach you how to do this.

Why Should You Run Your Car On Water?

Before you decide whether you want to convert your car to run on water, you should explore some of its benefits and drawbacks.

The most obvious benefit would be huge cost savings at the gas station. By increasing your gasoline consumption, you will need to travel more miles per trip to the gas station. Assuming your car travels 30 miles to the gallon of gasoline. If you were to travel 3000 miles per month, you would be pumping 100 gallons of gas to your car monthly. If you were to pay $3 per gallon, it would amount to $3,600 per year.

Say if you were to install a hydrogen water car system and achieve a 35 percent savings in gas consumption, it would amount to $1,200 per year. Considering the fact that converting your car to run on hydrogen requires roughly $100 or less, it is clear that such a conversion is well worth it.

Running your car on water also significantly reduces the amount of pollution, as explained below.

How Does This Conversion Work?

Water is made up of 2 hydrogen atoms and 1 oxygen atom. By running electricity through water in a process called electrolysis, the hydrogen and oxygen atoms can be separated. This process creates a type of gas called Brown Gas, made up of HHO molecules. This gas is a source of power that can be used to power our cars.

By running your car on Brown Gas, your car will only emit oxygen, thus causing less pollution to the environment.

However, running automobiles completely on water is not possible yet. Some amount of gasoline is still required in a mixture of gasoline and water to power your car. All these engine modifications can be made easily without having to purchase a brand new hybrid car.

Are you sick of expensive gas prices, and you want to build a water powered car? Download Step-By-Step Guides that teach you how to modify your car at http://www.review-best.com/water-powered-car-guides.htm now!

By Judd Marshall