The trend toward buying energy-efficient vehicles continues. If you bought a hybrid car last year, or if you’re searching for a new car this year, consider this valuable tax break.
Strategy: Claim a tax credit for purchasing a qualified hybrid vehicle. You may be entitled to a $3,000 credit for a 2008 model or one of the newer ’09 models (see charts below).
However, be aware that the tax credits may be reduced for the most popular models. At a certain point, the credit no longer is available.
Keys to the credit: The “alternative motor vehicle credit” is actually a combination of four credits available for vehicles placed in service after 2005 and before 2011. They are (1) the qualified fuel cell motor vehicle credit; (2) the advance lean burn technology vehicle credit; (3) the qualified hybrid motor vehicle credit; and (4) the qualified alternative fuel motor vehicle credit. But the hybrid vehicle credit is the mo...(register to read more)
- Small Business Tax Deduction Strategies No matches