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Tax Breaks: The Feds want you to buy a hybrid. Really – they do, and to back it up, they’re offering a tax credit of up to $3,400 for hybrids purchased after 2005. The amount depends on the fuel economy of the model, so again – the better the fuel economy, the better the tax credit, and, probably, the less power you get from your new ride. There are also state tax benefits available; check with your state’s website to find if you qualify for a credit.
HOV Lane Access: The hybrid single occupant exemption was recently extended, which is great news for hybrid commuters – but not all of ‘em. In California, for example, only those who buy a Honda Civic Hybrid, a 2001-04 Honda Insight or a Toyota Prius qualify, while these hybrids don’t: the Ford Escape Hybrid, Honda Accord Hybrid, 2005 Honda Insight (emissions), a Lexus RX 400h, Mercury Mariner Hybrid, Toyota Highlander Hybrid. All were disqualified due to fuel economy and emissions: less then 45 mpg and a partial zero emissions (PZEV) rating gets you a pass straight into the traffic-choked regular lanes.
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