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Tax Deduction Consulting: Hybrid Cars Buckhannon WV

The Energy Policy Act of 2005 established a tax deduction for hybrid cars put into service on or after January 1, 2006. The tax deduction is actually a tax credit. A tax deduction, technically, is subtracted from your taxable income and reduces your tax liability by a certain percentage depending on your tax bracket.

Harold D. Vealey (RFC®), CLU, LUTCF
(304) 346-2154
910 Chester Road
Charleston, WV
Company
Vealey Financial Services
Qualifications
Education: BA
Years of Experience: 43
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Charitable Planning, BuySell, Compensation Plans

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H&R Block
(304) 258-8777
318 N WASHINGTON ST
BERKELEY SPRINGS, WV

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Liberty Tax Service
(866) 871-1040
827 Fairmont Rd
Morgantown, WV

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SullivanWebb, pllc Certified Public Accountants
(304) 697-0565
422 Kinetic Drive Suite C
Huntington, WV
 
H&R Block
(304) 358-2501
LOVEGROVE BLDG 100 S MAIN ST
FRANKLIN, WV

Data Provided by:
Mr. Gregory R. Metcalf (RFC®), RFP
(307) 723-5018
200 Ivy St
Weirton, WV
Company
Horizon Financial Group
Qualifications
Education: Ohio University, BBA FinanceCollege for Financial Planning's CFP Certification Professional Education Program
Years of Experience: 15
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Portfolio Management, Pension Planning, Retirement Planning, Medicaid Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Education Plan, Healthcare Accounts, Asset Protection

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H&R Block
(304) 366-3728
32 TYGART VALLEY MALL
WHITE HALL, WV

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H&R Block
(304) 733-9171
4341 Us Route 60
Huntington, WV

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Liberty Tax Service
(866) 871-1040
911 Country Club Rd
Fairmont, WV

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Liberty Tax Service
(866) 871-1040
103 N Pike St
Grafton, WV

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Tax Deduction Consulting: Hybrid Cars

Tax Deduction for Hybrid Cars

Many people ask about the tax deduction for hybrid cars. The good news is that is actually is not technically a tax deduction at all, but rather a tax credit.

The Energy Policy Act of 2005 established a tax deduction for hybrid cars put into service on or after January 1, 2006. The tax deduction is actually a tax credit. A tax deduction, technically, is subtracted from your taxable income and reduces your tax liability by a certain percentage depending on your tax bracket. A tax credit, on the other hand directly reduces the amount of tax that you must pay and is a much better deal. This tax deduction for hybrid cars is a full credit, but is subject to certain restrictions.

The credit is only available to the original purchaser of the vehicle. If the vehicle is leased, the credit is taken by the leasing company and not the customer. Although the credit is not subject to any phase out amount with individual tax payers, there is a limit of 60,000 of each qualified vehicle before the credit itself begins to phase out. In the current list, for example, the Toyota Prius has reached the 60,000 vehicle cap and there is no credit available for this model if the purchase date is later than 10/1/2007.

The Internal Revenue Service publishes the list of qualified vehicles and sets the credit amount for each model. This credit amount varies from vehicle to vehicle. The 2008 Ford Escape has a credit of $3000 which is one of the higher amounts and each different vehicle on the list has its own set credit value. In the case of the Ford Escape, this would mean that the amount of tax owed would be lowered by the full $3000 of the credit. This amounts to a virtually rebate on the purchase price of the vehicle.

The Energy Policy Act of 2005 represents a good example of the ability of the Government to use tax credits to spur the public to perform actions that are deemed to be in the public interest. To provide a tax deduction of hybrid cars w...

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