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With tax day quickly approaching, drivers of alternate-fuel vehicles, including hybrids, may be missing out on valuable money-saving credits and deductions - most of which expire after this tax season. Cars.com, a leading online resource for buying, selling or owning a car, has compiled a comprehensive guide on finding and claiming the tax credits and deductions drivers might be owed.
These credits launched with the Energy Policy Act of 2005 and ended on December 31, 2010. To be eligible for the credits, vehicles had to have been purchased in 2010, and must fall into one of five categories: fuel cell, advance lean-burn technology, hybrid, electric or alternative fuel. Only the original owner of the vehicle is eligible for any credits or deductions.
"Filing for these tax credits can be confusing and cumbersome, it's not as easy as checking a box," says Patrick Olsen, Cars.com Editor in Chief. "Credits differ by make, model and even sometimes by trim level, so it's important that a consumer takes the time to research what they qualify for and have all the information needed to file on hand. For those who have more complicated filing issues, like amending a return that they already filed, we recommend consulting with an accountant.
The Act also specifies that after the manufacturer sells 60,000 units, the credits begin to phase out. The only manufacturers who hit that mark during the program were Ford, Honda, Toyota and Volkswagen.
"Even though Ford, Honda and Volkswagen did hit the 60,000 sales mark, those who purchased one of their hybrids this year should still check our guide," says Olsen. "There are some models from these manufacturers that qualified for the credit in 2010, based on the date they were purchased. Those interested in an electric vehicle still have a year to qualify for a tax credit of up to $7,500."
A complete list of 2010 tax credits for hybrid and alternative-fuel cars and answers to frequently asked questions about these credits can be found at Cars.com.
Cars.com was recently named the "Best Overall Customer Experience" by Keynote Systems, the world's leading Internet usage research company. Cars.com is an online destination for car shoppers that offers information from consumers and experts to help buyers formulate opinions on what to buy, where to buy and how much to pay for a car. With price listings, side-by-side comparison tools, photo galleries, videos, unbiased editorial content and a large selection of new- and used-car inventory, Cars.com puts millions of car buyers in control of their shopping process with the information they need to make confident buying decisions.
Launched in June 1998, Cars.com is a division of Classified Ventures LLC, which is owned by leading media companies, including Belo (NYSE: BLC), Gannett Co., Inc. (NYSE: GCI), The McClatchy Company (NYSE: MNI), Tribune Company and The Washington Post Company (NYSE: WPO).