The US Energy Policy Act of 2005 set a federal income tax credit of up to $ 3,400 for the purchase of new hybrid vehicles, purchased or placed into service after December 31, 2005. Vehicles purchased after December 31, 2010 are not eligible for this credit. The law limits tax credits to the first 60,000 eligible vehicles per car manufacturer, meaning that the credits for popular models will end before the expiration date of taxation. Notice this is a credit - dollar for dollar tax savings - not just a reduction. The tax credit will be removed two calendar quarters after the manufacturer reaches 60,000 new cars sold in the following manner: it will be reduced to 50% if sent either in the third or fourth quarter after the threshold is reached, up to 25% in the fifth and sixth quarters, and 0% thereafter. The Internal Revenue Service is responsible for certifying that certain passenger cars and light trucks qualify for credit and credit amounts.
Several state governments in the US have introduced special provisions for hybrid vehicles driving on the carpool (HOV) line.
Video Government incentives for fuel efficient vehicles in the United States
Tax incentives
Energy Policy Act of 2005
The Energy Policy Act of 2005 created incentives to encourage the purchase of low-emission vehicles. The Energy Independence and Security Act of 2007 extends this incentive to include emerging electric vehicles, and plug in hybrid, technology. The Energy Enhancement and Renewal Act of 2008 only acts to push back the deadline for tax credit collection and includes more electric vehicles in existing incentive programs. Although many speculate that the newer stimulus laws will greatly expand the existing incentive program, but the law has disappointed many people. When authorized, the American Recovery and Reinvestment Act of 2009 focuses more on green infrastructure than private transport incentives. The act does allocate money, however, to equip government agencies with more efficient vehicles, creating a grant program for diesel owners who want to equip their cars with cleaner burning technology, and add a significant tax incentive program for plug-in hybrids.
Tax incentives that are the result of the Energy Policy Act of 2005 offered to make the vehicle more expensive, but more environmentally friendly are more attractive. Because the manufacturing process of many low-emission vehicles (LEVs), for example, hybrid engines, is more tech intensive, and therefore more expensive, than the standard gasoline engine manufacturing process, the cost of hybrid cars is greater than comparable performance cars. Many potential buyers will require economic incentives to buy LEVs that are more expensive than gasoline cars, so tax credits are offered to effectively underestimate LEVs and encourage the purchase of more environmentally friendly cars.
Characteristics and availability of tax credits offered will vary based on the characteristics and popularity of the car in question, respectively. The size of the tax credit offered is usually in value with the amount of money questioned by technology added to the price of making the car. For example, hydrogen fuel cell vehicles that are in the early stages of development are more expensive and receive larger tax credits than the cheaper diesel cars to make. The existing incentive program is also set to phase out after the given maker sells 60,000 hybrid vehicles, so the more popular models like the Toyota Prius are no longer subject to tax credits.
Incentives can also vary based on how well cars are questioned in this "green" category. For example, a Tesla Roadster buyer, a utility vehicle entirely, will receive a much larger tax credit than a standard hybrid buyer, which will pollute more during its lifetime. The federal government now lists previously approved models for receiving tax credits; some other models may be ad hoc qualified.
US Department of Energy Credit Requirements
The Department of Energy has special requirements to be met by car manufacturers, to receive tax credits from the government.
- Vehicles must be manufactured by the manufacturer, and can not be purchased vehicles that have been converted into Hybrid.
- Vehicles should be treated as motor vehicles to fall under the title II of clean air.
- Vehicles should be driven significantly by electricity. Must have a battery with a capacity of 4 kilowatt hours or more. Batteries must also be rechargeable from an external power source.
Vehicles that have been certified may qualify for tac credit by meeting this additional requirement.
- Vehicles must be new, and genuine use for vehicles by taxpayers receiving credit should not change.
- The tax credit will only be given to the original buyer of the vehicle, and not to the owner of the used goods. If the vehicle is being rented, the tax credit can be claimed by the leasing company only.
- Vehicles should be used mostly in the United States.
- Vehicles must be placed in service by the taxpayer in 2010 or later.
Classification for vehicles with tax credits
- Diesel : Since diesel engines are usually more fuel efficient, and can run on cleaner diesel fuel mixtures, diesel-powered car buyers qualify for federal tax credits. Many Volkswagen diesel models are currently approved for a tax credit of between $ 1,000 and $ 1,700. Since diesel engines are less common in the US than standard gasoline cars, much more credit taxes are left for this Volkswagen model than the popular hybrid models like the Toyota Prius.
- Alternative fuel vehicles : Currently the only alternative fuel vehicle approved previously is the Honda Civic GX, which uses compressed natural gas (CNG), a fossil fuel that burns cleaner than standard gasoline. Currently the standard credit for a quality alternative fuel vehicle is $ 4,000. In addition to the Civic GX, a number of models produced after 2004 can qualify for a tax credit.
- Electric vehicles : The government tax credit program is planned for electric hybrid vehicles and plug-in, but no certified models have been available yet.
Fax out credit
Close 60,000 vehicles apply to all nameplates throughout the car maker's business, and as such, the hybrid Lexus is recorded as part of Toyota Motor Company's production, or the Mercury hybrid is part of Ford Motor Company's hybrid production. By mid-2010, three auto manufacturers had reached 60,000 caps, Toyota grabbed it in 2007, Honda in 2008, and as of April 1, 2010, all Ford hybrid vehicles were no longer eligible for tax credits.
The new plug-in electrical credit phases that qualify out for PEV manufacturers over a one-year period starting with the second calendar quarter after the calendar quarter in which at least 200,000 qualified vehicles from factories have been sold for use in the United States.. For this purpose, cumulative sales are recorded after December 31, 2009. PEV qualifications qualify for 50% of credits if earned in the first two quarters of the termination period, and 25% of credits if purchased in the third or fourth quarter of the phase-out period. [179] Both Nissan Leaf electric vehicles and the Chevrolet Volt plug-in hybrid, launched in December 2010, qualify for a maximum tax credit of $ 7,500. [182] The Toyota Prius Plug-in Hybrid, released in January 2012, qualifies for a $ 2,500 tax credit due to battery capacity smaller than 5.2 kWh. [183] ​​â € <â € < All Tesla Motors cars qualify for 7,500 tax credits.
Current available credit
Historical credit rating
The main federal incentive for consumers to buy fuel-efficient vehicles is to provide tax credits. Countries also have their own incentive programs to further encourage fuel-efficient vehicles in their own countries. These incentives range from more tax credits, to insurance discounts, to falling prices on car registration fees. Some countries offer free parking for electric vehicles, or rebates to people who install charging stations in their home or business. Almost every country has a different approach to get more people to reduce their carbon footprint. The states provide program incentives to get people to buy efficient vehicles, as it reduces negative externalities such as air pollution, and increases the likelihood of low-income families having the opportunity to purchase clean air vehicles.
- Arizona - taxpayers can receive a $ 75 tax credit for installing an EV charging outlet in their own home. Some hybrids may qualify to reduce license fees. Arizona has allowed 10,000 EV and plug in hybrids to gain access to the HOV line, but this incentive has reached its capacity.
- California - State governments offer discounts through the Clean Vehicle Rebate Project (CVRP) where taxpayers who buy EVs or plug in hybrids can receive $ 2,500 dollars. Restrictions on eligibility have been placed due to high funding and demand constraints. California allows for unlimited number of EVs and Plug in Hybrids to access the state HOV path. Most California utility manufacturers offer discounts to charge the car during rush hours.
- Colorado - State governments have incentivized consumers to buy EVs that provide $ 5,000 of instantly available grant funds upon purchase.
- Connecticut - up to $ 3,000 can be recovered through rebates with the Connecticut Hydrogen program and Electric Automobile Purchase Rebate (CHEAPR). Delaware - State governments are offering $ 2,200 rebates to rent or buy EVs. They also have $ 1,100 rebates to convert a combustion engine into a pure electric vehicle.
Maps Government incentives for fuel efficient vehicles in the United States
Parking incentives
On July 29, 2005 Arizona Revised Statutes of the 47th Session of Chapters 28-2416 and 28-737 enabled EPA approved hybrid vehicles as a minimum, meeting, US Environmental Protection Agency, Ultralow Emission Vehicle Standard with US $ 8 Special plates/hybrid stickers displayed on the vehicle to use the High Occupancy Vehicle (HOV) line regardless of the number of passengers. Arizona has not instituted this policy, as it awaits clarification of the federal HOV HQ abortion from the EPA. On January 16, 2006, SB 1179 was introduced which would reaffirm the benefits of HOV, awaiting federal permission.
In California, a hybrid with an estimated EPA of 45 mpg -US (5.2 L/100 km; 54 mpg -imp ) or higher meets the requirements for driving in California carpool lanes with just one passenger.
Virginia also has provisions for hybrid vehicles. For example, the Toyota Camry Hybrid is eligible, but must be specifically marked on June 30, 2006 to qualify for the release of I-95 and I-395. Exceptions to I-66 and Dulles Toll Road The use of HOV continues even for registration after 30 June.
See also
- Enhanced Energy and Extension Act of 2008
- Government incentives for plug-in electric vehicles
Note
Source of the article : Wikipedia
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