| Between global warming and massive increases in fuel | | | | Indeed, the IRS has just issued the tax credit |
| prices, many people are reconsidering their | | | | amounts that can be claimed by individuals that |
| transportation. Honda has two natural gas cars the | | | | purchase the Honda natural gas models. Specifically, |
| IRS absolutely loves. | | | | the tax credit amount is $4,000 if you purchase |
| In 2005, the federal government passed a new | | | | either the 2006 or 2007 Honda Civic GX. The car |
| energy policy act that created tax benefits for the | | | | must be purchased new and directly form a dealer. |
| use of alternative fuel vehicles. Most people are | | | | Please note, these cars run only on natural gas, which |
| generally aware of this given the fact they get a tax | | | | is why they get such a big tax credit. |
| credit break when they purchase a hybrid vehicle. | | | | This $4,000 tax credit is a major financial incentive |
| What fewer people know, however, is they get | | | | for most taxpayers. Unlike a tax deduction, a tax |
| massive tax breaks if they purchase a natural gas | | | | credit is applied directly to the amount of money you |
| powered vehicle such as a Honda Civic GX. | | | | owe the IRS. If you prepare your tax returns and |
| Buried within the language of the new energy policy | | | | determine you owe $7,000 to the IRS, the tax credit |
| act is the Alterative Motor Vehicle Credit. The AMVC | | | | would reduce this amount to $3,000. In short, we are |
| goes well above and beyond the financial benefits | | | | talking about major savings. |
| granted to hybrid cars. The act defines four distinct | | | | There is little dispute that we are facing significant |
| areas where the IRS must issue significant tax | | | | issues related to energy. From global warming to our |
| credits. Those categories include fuel cell vehicles, | | | | reliance on foreign sources for fuel, things are pretty |
| advanced lean burn technologies, hybrid vehicles and | | | | bleak. The transition to alternative fuel sources |
| alternative fuel vehicles. While most vehicles fall within | | | | makes sense, and now the tax credit for natural gas |
| the hybrid classification, new models are coming on | | | | powered vehicles makes financial sense as well. |
| the market that fall within the remaining three. | | | | |