Irs Issues Tax Credit Amount For Toyota Camry Hybrid
By Richard A. Chapo
Prior to January 1, 2006, people purchasing hybrid vehicles were eligible to claim a significant tax deduction. Now they can claim a monstrously large tax credit.

IRS Issues Tax Credit Amount For Toyota Camry Hybrid

The government attempts to modify the behavior of taxpayers by applying or reducing taxes on certain activities. Alcohol and cigarettes are viewed as health risks, so the government adds excessive taxes to them to try to discourage their use. On the energy front, the government is in favor of people buying hybrid vehicles as part of the effort to reduce our nation’s oil dependence. To facilitate this policy, the government is giving people who buy hybrids a huge tax windfall.

To understand the windfall, you need to understand the difference between a tax deduction and tax credit. A deduction is something you reduce from your gross income. A $1,000 deduction may save you $200 to $400 depending on your tax bill. A tax deduction is a positive thing, but

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