Business Tax Recovery Logo


Tax Credit Consulting: Car Buying Salem OR

Here are some important questions to ask when choosing a summer day camp for your children

Northwest Tax & Bookkeeping
(503) 585-6948
750 Hawthorne Ave NE
Salem, OR

Data Provided by:
Mayer Financial Group
(503) 585-1393
2367 State St Ste 30
Salem, OR

Data Provided by:
Cornerstone Tax & Financial
(503) 363-3786
1084 Liberty St SE
Salem, OR

Data Provided by:
Mr Z's Tax Svc
(503) 393-5725
4795 River Rd N
Keizer, OR

Data Provided by:
Evans Accounting & Tax Inc
(503) 588-3673
146 Chemawa Rd N
Keizer, OR

Data Provided by:
H&R Block
(503) 363-1585
1361 LANCASTER drNE
SALEM, OR

Data Provided by:
H&R Block
(503) 585-5264
1361 LANCASTER DR
SALEM, OR

Data Provided by:
Jackson Hewitt
(503) 585-4663
3771 Commercial St. SE
Salem, OR

Data Provided by:
H&R Block
(503) 390-6622
2927 NE BROADWAY ST STE 150
SALEM, OR

Data Provided by:
Max Refund Tax Svc
(503) 393-2141
4947 River Rd N
Keizer, OR

Data Provided by:
Data Provided by:

Tax Credit Consulting: Car Buying

Tax Credit for Car Buying

You may have heard that you can receive a tax credit for car buying. This is true, but the type of car is what is important here.

Tax credits have long been used by the United States Government to encourage activities that are deemed to be in the public interest. The concern over energy and the rising cost and political implications of oil as a fuel have led to a number of tax credits designed to encourage alternative fuels. You can receive a tax credit for buying a car if you decide to purchase one of the new Hybrid vehicles that use a combination of gasoline and alternative fuels or electrical power.

The credit for hybrid car buying was part of the Energy Policy Act of 2005. It applies to certain vehicles placed in service from 12-31-05 to 12-31-10. The Government sets the applicable credit for each vehicle type that qualifies. The credits range from $250 to over $3000 depending on the make of the vehicle. There is also a phase out provision. The credit is designed to encourage sales up to 60,000 new vehicles of each type. Apparently, after this figure has been reached, the credit on that particular vehicle type will cease.

The vehicles must be purchased new and the original purchaser must be using them for his own personal use in order to claim the credit. The program is designed to provide some encouragement to buy the hybrid vehicles to lower income taxpayers. It must be assumed that higher income tax payers can afford to purchase hybrid vehicles and benefit from their energy savings without a credit incentive. This point is made because if you are subject to the Alternative Minimum Tax (ATM), you can not claim this credit.

Some examples of the types of vehicles covered by the credit include $250 for the Chevrolet Silverado 2WD, $650 for the Saturn Vue Green Line and $3150 for the Toyota Prius. The complete list of eligible vehicles can be seen on the IRS website.

The credit is claimed on Form 8910, Alternative Motor Ve...

Click here to read the rest of this article from BusinessTaxRecovery.com