How Big a Credit? It Depends
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Individuals can get a tax credit for buying a new hybrid car or truck. The credit ranges from $250 to several thousand dollars, depending on the make and model of the vehicle and when you bought it. (Hybrids are vehicles that run on electricity and gasoline.)
The credit you can claim diminishes in the 15 to 18 months after the manufacturer of the car or truck sells a cumulative 60,000 or more of all of its hybrid vehicles. That's why it's too late, for example, to get the full credit of $3,150 on a 2006 or 2007 Prius, because Toyota sold 60,000 of its qualifying hybrid vehicles in the three months that ended June 30. But you can claim the reduced credit of $1,575 if you buy a Prius before Dec. 31. Other carmakers have not yet hit their limit, meaning the full break is still available on their vehicles. This tax benefit continues for the next tax year, but its value may change.
Beware. If you lease a hybrid, the company that leases it can claim the credit, not you.
