Hybrid tax credits: A necessary evil?
Would tax credits speed plug-ins?Tax credits for buying hybrid cars have long expired for Toyota, the hybrid sales leader. Likewise, a tax credit for plug-in hybrids was dropped from the House's energy bill, essentially, at the request of oil companies.
Yet, a huge gas-guzzler can still qualify for a tax deduction? What the hell? Finish......
Labels: diesel hybrid vehicles, hybrid tax credits, plug-in hybrid vehicles
posted by Dahcredyns at
9:01 AM
7 Comments:
I agree with your take on the political-twistedness on the matter, but with gas prices predicted to hover near $4.00 in the next year, the treasury will surely lose much revenue as more buyers trade in their Expeditions in favor of a Prius or an Escape hybrid.
I think that's a great point.
Still, there are no caps at all on the small business tax credit for larger vehicles. Why?
Also, how much would the US save per year if we didn't import any oil? While that isn't an easy question to answer, there is no doubt that foreign oil dependency has cost the US economy trillions of dollars. Of course, that has to be offset against how much cheap gas has helped the economy, has helped companies that develop products for the military to keep oil cheap.
Still, ultimatley, I largely agree with you that tax credits really aren't a solution.
The real solution is just asking Americans to start paying more of the real world costs of foreign oil dependency at the gas pump, unfortunately, that seems politically impossible.
Considering that fact, I have to sit on the side of the fence that supports hybrid tax credits, as flawed as that 'solution' might be.
The federal hybrid tax credit is a myth. All the tax credit does is mislead the general public and make lawmakers that get perks from oil companies sleep better at night.
90% of hybrid buyers couldn't get it because of AMT. If you're not sure how AMT screws you, check this out: http://www.hybridcars.com/hybrid-tax-credit-alternative-minimum-tax.html
kp-
just another example of why we don't want the government in charge of fixing our problems and why natural forces, such as simply paying the real cost of gasoline at the pump, are the best way forward.
still, i don't make enough money to be affected by AMT, so the tax credit for hybrid cars worked great for me when the toyota still qualified. and, while i think those affected by the AMT do get screwed by "political twistedness", as Lyle called it, the tax credits have helped some buy hybrids.
at this point in time, the average person buying a hybrid is on the upper-side of the middle class and higher, but this group of Americans represents a very small percent of society. if average joes are to move into hybrids, tax credits - even the messed up federal credit - can be very beneficial.
I wouldn't have bought my Escape hybrid without the tax credit. We definitely need more tax credits.
The tax credit we THOUGHT we'd get was a huge factor in buying our Prius. My point is that it doesn't always materialize. We bought our 2006 Prius in March 2006, several months after the tax credits were announced. January 2007 was when the "adjustments" that made AMT wipe out our $3150 credit were penned. "Bait & Switch" has replaced "e pluibus unum." So I say get rid of the bait altogether.
That's right...there is NO WAY this government is going to give a free lunch. Every SINGLE thing out there is made to take your money one way or another.
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