The rising cost of gas, plus the growing concerns about the environment has forced the United States government to look for new ways to get people to conserve energy.
Back in 2005, the Internal Revenue Service decided to give individual car owners a financial incentive to start using cars that used fewer fossil fuels and were better for the environment.
And this incentive is not just lower prices at the pump.
The Internal Revenue Service started to give tax credits ranging anywhere from two thousand dollars all the way up to 50 grand, depending on what kind of car you choose to drive.
As you might expect, the IRS has strict criteria in regards to these tax breaks.
In order to qualify for the credit, you must meet the following criteria: 1.
The vehicle must be placed in service after December 31, 2005, and it must have been purchased on or before December 31, 2010.
2.
The only person who can claim the tax credit is the original owner, and the car must be new.
This credit does not apply to used hybrid vehicles.
3.
If the vehicle was acquired through a lease, the leasing company may claim the tax credit 4.
The person who sold the vehicle to the person or entity that is using the vehicle is able to claim the credit, but only if the seller discloses to the tax-exempt entity the amount of the credit.
This must clearly be disclosed in a document.
5.
The vehicle must be used primarily only in the United States of America