Saturday, February 5, 2011

Tax Credits for Hybrids

I was doing taxes, and decided to see what credit I'd qualify for if I bought a hybrid. Turns out a certain car model only gets a credit for the first 60,000 sold to their first owners, so popular hybrids are usually not qualified anymore. Here's the list of model year 2011 cars, their MSRP, and the respective credits:
  • BMW Active Hybrid 750i, $102,300, $900
  • BMW Active Hybrid Li, $106,200, $900
  • BMW Active Hybrid X6, $88,900, $1,550
  • Cadillac Escalade Hybrid (2WD & 4WD), $73,840, $2,200
  • Chevrolet Tahoe Hybrid C1500 2WD, $50,735, $2,200
  • Chevrolet Tahoe Hybrid K1500 4WD, $53,540, $2,200
  • Chevrolet Silverado Hybrid C15 2WD, $38,340, $2,200
  • Chevrolet Silverado Hybrid K15 4WD, $41,490, $2,200
  • GMC Sierra Hybrid C15 2WD, $38,710, $2,200
  • GMC Sierra Hybrid K15 4WD, $41,860, $2,200
  • GMC Yukon Hybrid C1500 2WD, $51,200, $2,200
  • GMC Yukon Hybrid K1500 4WD, $54,010, $2,200
  • GMC Yukon Denali Hybrid K1500 4WD, $61,360, $2,200
  • Mercedes Benz ML450 Hybrid, $55,790, $2,200
  • Nissan Altima Hybrid, $26,800, $2,350
  • Porsche Cayenne S Hybrid, $67,700, $1,800
As I have called out in boldface, only one of these qualified models sells for under $30,000. Why are we giving tax breaks to people who are buying $100,000 cars? Does anybody think that someone who buys the BMW 750i is even going to notice the $900?