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Tax Deduction Consulting: Hybrid Cars Juneau AK

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.

Logan General Tax Practice
(907) 789-3894
2245 Jordan Ave
Juneau, AK
 
Hauber & James Tax & Financial Services Inc
(907) 789-3091
9340 Glacier Hwy Ste 43b
Juneau, AK
 
Mr. Micah Vincent Shilanski (RFC®), CFP, CSA
(907) 278-1351
431 W. 7th Avenue Suite 100
Anchorage, AK
Company
Shilanski & Associates, Inc.
Qualifications
Years of Experience: 9
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Retirement Planning, Tax Planning, Tax Returns, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, CommOptions, Collectable Coins , Precious Metals, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Education Plan, Healthcare Accounts, BuySell

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Liberty Tax Service
(866) 871-1040
2207 E Tudor Rd # 35
Anchorage, AK

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Hutton & Hauber Tax & Accounting Services Inc
(907) 789-3091
9340 Glacier Hwy
Juneau, AK
 
H&R Block
(907) 789-9898
3017 CLINTON drSTE 100
JUNEAU, AK

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Hutton & Hauber Tax & Accounting Services Inc
(907) 789-3091
9340 Glacier Hwy
Juneau, AK
 
H&R Block
(907) 338-4848
7731 E NORTHERN LIGHTS BLVD
ANCHORAGE, AK

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H&R Block
(907) 222-2978
5800 WESTOVER
ELMENDORF AFB, AK

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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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