Do today's hybrids really need new tax credits?

Hybrid sales versus hybrid tax credits

I was just checking out some data provided by Hybridcarreview that seeks to find out the impact of tax credits for hybrid cars and the sales of hybrids.

Ultimately, this summer, Toyota Prius sales proved that tax credits are largely irrelevant when energy prices are higher. For other hybrids, the data isn't as convincing.

Even today, Prius sales are relatively strong, particularly considering that the third gen. Prius is almost set to launch.

Inevitably, over time - I believe - higher energy costs will naturally hybridize automobiles as America's fleet slowly but surely moves towards electrification. Keyword, as far as the next decade is concerned, is slowly.

However, if America were to set a goal of 1 million hybrids per year by 2012, hybrid tax credits for conventional hybrids would be needed.

So are new tax credits for conventional hybrids needed? It depends on how fast you want to embrace efficiency.

(Check out Hybridcarreview.com)