As you know, hybrid vehicles are environmentally friendly and save you from quickly rising prices at the pump. But did you also know that these cars come with some lucrative federal and state tax benefits? Here are some of the savings you could enjoy when buying a plug-in hybrid electric vehicle (PHEV) like the Honda Clarity at your Ohio or Indiana Miami Valley Honda Dealers location.
$7,500 in Federal Tax Credits
The United States government gives new PHEV and EV buyers a tax credit worth up to $7500 for the purchase of a qualified electric car or plug-in hybrid vehicle. All who claim the credit will receive a minimum of $2500 and a maximum of $7500. For instance, if you choose to buy a Clarity PHEV, you get the maximum credit. Cha-ching!
Coming up with the monetary credit value is quite complicated. In general, how much money in tax savings you actually receive depends on your vehicle’s battery capacity. Cars and trucks with at least 5kWh of capacity will net you $417. Another $417 is added to your return for every kilowatt-hour of capacity over 5 kilowatts.
There are a few conditions to these PHEV tax credit:
- The purchase must take place after December 31, 2009.
- You must buy the car with the intention of driving it yourself. Vehicles purchased for resale do not qualify.
- The purchaser must plan to use the vehicle themselves. Gift vehicles do not qualify.
- The vehicle has to be used mostly within the borders of the United States.
- For some vehicles, this credit is not available until the taxpayer holds the title. That means you won’t be able to take the credit until you’ve met all payment obligations when financing a Honda Clarity, for instance.
Warning: If you’re thinking about buying a Honda PHEV, now is the time! The credit is set to phase out once the manufacturer has sold 200,000 PHEVs in the United States. During the phaseout period, however, purchasers can still claim a credit equal to 25% to 50% of the original credit value.
Ohio PHEV & EV Incentives
Currently, Ohio does not give PHEV tax credits for new car buyers. However, residents of Ohio can cash-in on additional benefits along with the federal credit when buying a Honda PHEV or EV.
- Owners of fully electric vehicles don’t have to worry about yearly emission testing after passing the initial test.
- Many insurance companies offer subscribers discounts for driving a hybrid or alternative fuel vehicle. (Talk to your insurance representative for more information.)
- Buyers can also take advantage of manufacturer-sponsored rebates and discounts on certain PHEVs. In conjunction with the federal credit, these sales can add up to a big reduction in your out-of-pocket costs. (Ask your Honda dealer about any special incentives available.)
While these perks are not tax credits, they can make it more affordable to purchase a new electric Honda in Dayton or the Miami Valley area.
Indiana PHEV & EV Incentives
The state of Indiana does not offer any direct PHEV tax credits, though numerous utility providers in Indiana are actively working to encourage the use of hybrid vehicles by giving customers significant discounts and rebates.
- Indianapolis Power and Light Company’s Electric Vehicle Charging program gives EV owners special rates for charging their vehicle at home. The program is designed to encourage owners to charge their vehicles outside of peak usage hours. Customers can take advantage of time-of-use and flat-rate charges to save a substantial amount on their monthly electricity bills.
- Northern Indiana Public Service Company (NIPSCO) gives their customers a special rate for charging their electric vehicles overnight, between 10 pm and 6 am.
- NIPSCO is currently offering its employees and customers a $3000 rebate for purchasing certain new model hybrids. To claim the credit, show your employee ID or utility bill at participating Honda dealerships in Indiana.
Manufacturers and distributors in Indiana frequently offer special pricing, rebates, and discounts on hybrid vehicles, so be on the lookout for deals as you search for a new Honda in Richmond, IN.
Shop Clarity PHEV In Ohio & Indiana Today
When combined, these PHEV tax credits, rebates, and discounts can reduce your overall investment while also helping us preserve our planet’s precious resources. Can’t beat that!
If you’re looking to drive green in the Midwest, take a tour of the Honda Clarity models available at our Miami Valley Honda Dealers locations. We have Honda dealerships in Dayton, Beavercreek. Tipp City, and Springfield, OH, as well as Richmond, IN. (And don’t forget to ask us about any current Honda hybrid deals we might have for you!)
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