$4000 Tax Incentive to Buy a New Hybrid?

Love that new Honda Accord hybrid or Ford Escape hybrid, but afraid of the extra cost?

Auto analysts note that hybrids typically cost about an extra $3000 - $4000 above the cost of their conventional cousins. Of course, the new generation of hybrids, such as the Accord hybrid, Lexus RX400h hybrid, and Toyota Highlander hybrid do provide better performance and significantly better fuel-efficiency for that cost.

Also, buyers can claim a tax credit of up to $2000 to help offset that difference. Unfortunately, that credit will be reduced to $500.00 next year, unless H.R. 626 is approved by Congress.

H.R. 626 would provide between $600 and $4,000 per vehicle in tax incentives for consumers who purchase advanced technology vehicles, depending on the vehicle.

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