Do hybrid tax credits still make sense?
Tax credits have helped Altima hybrid sales
The Toyota Prius has not qualified for a tax credit in some time, yet demand far outweighs supply. The demand supply ratio is so out of whack that dealers are adding as much as $5,000 to the MSRP, in addition to thousands worth of dealer add-ons - and they are still selling.
Many other hybrid cars, such as the Honda Civic hybrid and the Toyota Camry hybrid, are selling as fast as they can be produced - also with dealer markups. While a few hundred thousand new hybrids will be added to the hybrid supply starting some time in 2009, if gas prices remain high, these hybrids will probably not just sell easily, but many will sell with dealer markups.
So, are hybrid tax credits still necessary? For what, to help justify dealer markups?
Hybridcarblog has been an advocate of hybrid tax credits for years, but isn’t new thinking required? For example, perhaps the focus should be on plug-in conversions, EVs, or vehicles that achieve at least 80 mpg. Of course, it’s hard arguing against hybrid tax credits when, unbelievably, gas guzzlers STILL qualify for small business tax incentives.
Nonetheless, should Congress create new hybrid tax incentives and, if so, what should be the focus?
Original post by Dahcredyns