Hybrid Cars Tax Credit 2011

President George W. Bush signed the Energy Policy Act of 2005, which considerably changed the energy policy of in the United States. As a measure to promote the use of energy-efficient and environment friendly sources of energy, the government offered several incentives to the people as a part of the bill. The hybrid cars tax credit was a part of the said act.

Provisions Regarding Hybrid Cars Tax Credit 2011

The basic intention of the act was to promote the use of fuel-efficient vehicles and energy resources. The best way to encourage such a widespread use of vehicles is to provide some kind of incentive to the people. In this case, the act empowered the IRS to provide tax credit to the people in cases where they purchased some specified hybrid vehicles. A tax credit is basically a provision where the tax filer would not have to pay tax worth the tax credit for the next year, very much like a prepaid tax. In some cases, a rebate or a refund would be provided to the income tax filers. A hybrid vehicle is an automobile that works on two mechanisms, namely, an internal combustible engine, and a battery operated motor. Apart from that, these cars are fitted with a certain mechanism wherein unused mechanical and kinetic energy is transformed into electrical energy and is stored into the battery which in turn, is used for motor propulsion. The car thus, saves a high volume of energy, and more importantly fuel. It also does not cause any pollution in the process.

As per the provisions of the act, the IRS would release a list of vehicles for all applicable years. The people who purchased the vehicles in these years would receive the aforementioned tax credit or tax rebate. The time limit for the tax credit was December 31st, 2010. That is, any vehicle purchased before the date would become a valid ground for a tax credit. The act and the IRS have made certain provision for the vehicles to be released in 2011. The condition is that the vehicle, should be procured (paid for) in 2010 yet it can be model for 2011 and actual custody of the vehicle can be taken in 2011. The IRS has also put forth a list of models that it recognizes as 2011 models and a valid ground for a tax credit.

Recognized Hybrid Cars

The following is a list of cars that are valid for tax credit for hybrid cars 2011. These cars are qualified by the IRS and the models not included in the said list are not valid for the credit. It must be noted that this list if applicable for 2011 models.

Manufacturer	Car Model	Available Tax Credit
BMW	Active Hybrid 750i	$900
BMW	Active Hybrid Li	$900
BMW	Active Hybrid X6	$1,550
Cadillac	Escalade Hybrid (2WD & 4WD)	$2,200
Chevrolet	Tahoe Hybrid C1500 2WD	$2,200
Chevrolet	Tahoe Hybrid K1500 4WD	$2,200
Chevrolet	Silverado Hybrid C15 2WD	$2,200
Chevrolet	Silverado Hybrid K15 4WD	$2,200
GMC	Sierra Hybrid C15 2WD	$2,200
GMC	Sierra Hybrid K15 4WD	$2,200
GMC	Yukon Hybrid C1500 2WD	$2,200
GMC	Yukon Hybrid K1500 4WD	$2,200
GMC	Yukon Denali Hybrid K1500 4WD	$2,200
Mercedes Benz	ML450 Hybrid	$2,200
Nissan	Altima Hybrid	$2,350
Porsche	Cayenne S Hybrid	$1,800

To get the hybrid car tax credit, your purchase would have to fulfill two simple conditions - First, it should be qualified by the IRS, that is, it should be in the aforementioned list. Second, it must be a 2011 model and third, it must be procured before the end of 2010.