Federal Credits on Hybrids and Electric Vehicles Can Exceed $7,000

Many consumers are making a conscientious choice to drive more fuel efficient vehicles. Some are making the choice simply to save on their regular gas bills, while others are making the choice because they want to reduce their impact on the environment, and even some make the choice because they see the impact that our dependence on foreign oil has on everyone.

Whatever the specific reason is for choosing a more fuel efficient vehicle is not significant. What is significant is that we reduce our usage of fuel in any way possible and the federal government has stepped in to help out.

There are many automakers who offer hybrid vehicles, plug-in hybrid models, and even electric drive cars. What all of these vehicles have in common is their reduced fuel usage compared to traditional gasoline powered vehicles. Many hybrid models can achieve up to an additional 10 mpg over their gasoline counterparts. While hybrids are efficient, electric drive vehicles are ever more so. Electric drive vehicles do not utilize any gasoline in operation.

With an increasing amount of automakers offering "green" vehicles, there are choices for everyone. Yes, many of these vehicles do cost more than traditional gasoline powered vehicles. However, they also offered a significant annual fuel savings which accounts for less money spent at the pump.

Aside from less money spent at the pump, did you know that federal incentives exists that can in many cases almost eliminate the additional costs of hybrid and electric vehicles. The federal government, through automobile tax credits for hybrid-gas and electric vehicles, has provided a significant way to reduce the upfront costs associated with many of these efficient vehicles.

The tax credit for hybrid vehicles depend on the efficiency of the model you choose as well as some other factors. Many hybrid models qualify for tax credits up to $3,000. The tax credits are only available until the end of December and are phased out as manufacturers reach 60,000 units of each eligible vehicle. The tax credits can significantly reduce the costs of many hybrid models worthy of consideration.

Credits for electric vehicle are even more significant. For example, the Nissan Leaf EV, which is scheduled for release this fall, will come with a tax credit of $7,000 or more. This amount will significantly reduce the cost of an electric vehicle. Credits vary by model, but the savings are substantial across the board.

In the plug-in hybrid category, tax credits are similar to electric vehicles. Many models are eligible for upwards of $7,000 in credits.

So if you are considering a new, more efficient vehicle, think twice about hybrids and electrics. Their credit eligibility may make them a bigger bargain than you had anticipated