New Year, New Car, New Solar Panels?
With the new year approaching, here's something you may want to start thinking about: A new car. In 2006, a purchase of a hybrid vehicle qualifies you for a tax credit of more than $3,000. Not a tax deduction mind you, which simply reduces the gross income you're taxed on, but a tax credit, meaning it's deducted directly from taxes owed.
Similarly, installing solar power in your home can translate to as much as $4,000 off your tax bill. There are actually two credits there, each worth $2,000 -- one for installing photovoltaic cells to produce electricity, the other for installing a solar water heater.
The hybrid car credit is good through 2010, but keep in mind that the credits vary by model and are capped at 60,000 vehicles per automaker. With Toyota selling the Prius at a rate of 10,000 per month, you might want to start planning your purchase now.
1 Comments:
From what I understand, the 2006 hybrid rebates vary tremendously depending on what model you buy. The Prius, for instance, will be good for over $3,000, while other cars might be less than $1,000. Be sure to check with the dealer to find out what you can expect.
And Pat's right: If you want the full rebate for a Prius, better order NOW.
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