There’s just over a month left of summer and summer vacation driving. And gasoline prices are holding, across most of the United States, around $3 a gallon.
I just love this GasBuddy.com map. Right click on your county — Yeah,
Anyway, if you just got back from a long road trip and are facing the incoming gasoline charge card bills, you might be thinking about trading your vehicle for a more fuel efficient one. Some of you might even be considering an alternative fuel auto.
The debate is still raging as to whether these vehicles are a good buy. That’s a personal decision each of has to make based on our bank balance, how much we actually drive, how better-mileage gasoline powered autos stack up, and our environmental leanings.
I’m just here to throw another consideration into the mix: The federal tax credit you can claim for IRS-approved alternative fuel vehicles. Of the 57 autos, trucks and SUVs now on the tax credit list, most are hybrids, which operate on a combined gasoline (internal combustion) engine and a rechargeable electric battery.
Credit basics: I’ve e-driven this road many times (you can read all my previous hybrid posts here), so I’ll just hit the high points this time.
- First, the amount of credit depends on the make and model you buy.
- The credit amounts will start decreasing at some point for most manufacturers. The reduction is triggered when the manufacturer sells its 60,000th hybrid.
- When the reduced credits kick in, they will continue to drop until the tax break is eliminated for all that manufacturer’s hybrids completely.
- For automakers that don’t sell enough to trigger the reduction, or do so very late in the game, the tax credit will continue for eligible vehicles purchased and on the road by Dec. 31, 2010.
Since my last hybrid posting, Uncle Sam has given the tax-break seal of approval to a couple more vehicles. Below is the latest complete list as of today, July 26, 2007. The credit amounts shown are available through this quarter, i.e., until Sept. 30.
Note that all the Toyota/Lexus model credit amounts listed later in this post reflect the Oct. 1, 2006, credit cuts that took effect then because Toyota met the 60,000-sale mark last year. This coming Oct. 1, Toyota/Lexus hybrid credits disappear entirely.
The only other manufacturer nearing phaseout of its alt-fuel credits is Honda, which through May 2007 had sold almost 57,000 hybrids (figures from EDTA) since the credit became available on Jan. 1, 2006.
One Honda model, however, won’t ever see the credit drop. The Honda Civic GX, model years 2005, 2006 and 2007, is powered by compressed natural gas (CNG) and is worth a $4,000 credit. Unlike its hybrid cousins, this alt-fuel auto’s tax credit for does not phase out, since it runs on CNG. The full credit amount is available for buyers who purchase this make and model on or before Dec. 31, 2010.
Similarly, Honda’s FCX, model years 2005 and 2006, was just certified by the IRS as credit eligible. These vehicles, which operate on hydrogen fuel cells, will get buyers a tax credit of $12,000. Again, since this isn’t a hybrid, the credit doesn’t phase out.
Inquiring minds want to know: Of course, the FCX raises a couple of questions.
First, with a credit of 12 grand, what does this thing cost? I couldn’t find any U.S. purchase price info on this vehicle, whose concept model pictured here bears a close resemblance to the very popular Toyota Prius hybrid. Coincidence?
A road test review of the FCX back in 2005 by The Car Connection listed then a lease-only price of $500 a month. That article also includes a photo of the more SUV look that the real-road models apparently will have.
The other big question is where do you go to fill up when your hydrogen fuel cell runs out? This article discusses some of the refueling issues facing hydrogen powered vehicles.
Additional info, and questions, about the FCX are available in this Green Car Congress preview and this MotorTrend road test report.
And now the list: Whether a hydrogen powered, CNG or hybrid vehicle is on your shopping list, here’s the latest list of all the tax credit-worthy alternative fuel vehicles you can buy:
Model Year 2008
- Ford Escape 2WD Hybrid — $3,000
- Ford Escape 4WD Hybrid — $2,200
- Mazda Tribute 2WD Hybrid — $3,000
- Mazda Tribute 4WD Hybrid — $2,200
- Mercury Mariner 2WD Hybrid — $3,000
- Mercury Mariner 4WD Hybrid — $2,200
Model Year 2007
- Chevrolet Silverado 2WD Hybrid Pickup Truck — $250
- Chevrolet Silverado 4WD Hybrid Pickup Truck — $650
- Ford Escape Hybrid 2WD — $2,600
- Ford Escape Hybrid 4WD — $1,950
- GMC Sierra 2WD Hybrid Pickup Truck — $250
- GMC Sierra 4WD Hybrid Pickup Truck — $650
- Honda Accord Hybrid AT — $1,300
- Honda Accord Hybrid Navi AT — $1,300
- Honda Civic GX — $4,000 (compressed natural gas powered)
- Honda Civic Hybrid CVT — $2,100
- Lexus GS 450h — $775
- Lexus RX 400h 2WD — $1,100
- Lexus RX 400h 4WD — $1,100
- Mercury Mariner 4WD Hybrid — $1,950
- Nissan Altima Hybrid — $2,350
- Saturn Aura Hybrid — $1,300
- Saturn Vue Green Line — $650
- Toyota Camry Hybrid — $1,300
- Toyota Prius — $1,575
- Toyota Highlander Hybrid 2WD — $1,300
- Toyota Highlander Hybrid 4WD — $1,300
Model Year 2006
- Chevrolet Silverado 2WD Hybrid Pickup Truck — $250
- Chevrolet Silverado 4WD Hybrid Pickup Truck — $650
- Ford Escape Hybrid (Front) 2WD — $2,600
- Ford Escape Hybrid 4WD — $1,950
- GMC Sierra 2WD Hybrid Pickup Truck — $250
- GMC Sierra 4WD Hybrid Pickup Truck — $650
- Honda Accord Hybrid AT with updated calibration — $1,300
- Honda Accord Hybrid Navi AT with updated calibration — $1,300
- Honda Accord Hybrid AT without updated calibration — $650
- Honda Accord Hybrid Navi AT without updated calibration — $650
- Honda Civic GX — $4,000 (compressed natural gas powered)
- Honda Civic Hybrid CVT — $2,100
- Honda Insight CVT — $1,450
- Honda FCX — $12,000 (hydrogen powered)
- Lexus RX400h 2WD — $1,100
- Lexus RX400h 4WD — $1,100
- Mercury Mariner Hybrid 4WD — $1,950
- Toyota Highlander 2WD Hybrid — $1,300
- Toyota Highlander 4WD Hybrid — $1,300
- Toyota Prius — $1,575
Model Year 2005
- Ford Escape 2 WD Hybrid — $2,600
- Ford Escape 4 WD Hybrid — $1,950
- Honda Accord Hybrid AT — $650
- Honda Accord Hybrid Navi AT — $650
- Honda Civic GX — $4,000 (compressed natural gas powered)
- Honda Civic Hybrid MT — $1,700
- Honda Civic Hybrid CVT — $1,700
- Honda Insight CVT — $1,450
- Honda FCX — $12,000 (hydrogen powered)
- Toyota Prius — $1,575
