Hybrid Vehicle Tax Credits

Savings Structure
The tax credit expires in 2010. Heavier vehicles are favored through the structure of the fuel savings credit. It's easier to get better mileage with a hybrid Hummer (if one existed) versus a regular Hummer than it is to push the envelope for a 30-mpg sedan. The emission standards are also more lenient for vehicles over 6,000 pounds.


ACEEE's estimates of the credits that will be awarded to vehicles on the market today or coming soon in the table at http://www.aceee.org/transportation/hybtaxcred.htm. These estimates are based on best-available information, which may include manufacturer press statements or specifications of similar models. Credit amounts for certain models have been acknowledged by the IRS; they are noted as such in the table as well. Manufacturers are likely to alter vehicles in the coming years to maximize the credits they get. The Chevy Malibu Hybrid set to come out in '08 would get 27 mpg in city driving and save 1,372 gallons over its non-hybrid stable mates, thus qualifying for a $650 projected tax credit. The Nissan Altima Hybrid '07 model is projected to earn a $2,350 tax credit.