Kentucky State Bill to Allow Tax Credit on Hybrid Cars
December 26, 2006
• by Staff
– Kentucky State Rep. Charlie Hoffman and Jim Wayne from District 35 in Jefferson County are co-sponsoring a pre-filed bill to create a State of Kentucky tax credit of $500 for the purchase of a new hybrid vehicle, according to the Georgetown News-Graphic
. The move comes as federal tax credits for the vehicles are starting to shrink.
A federal energy bill passed in 2005 provided up to $3,600 in tax credits to hybrid owners. However, there was a cap for each manufacturer that limited the number of vehicles eligible for the credit. Toyota hit its limit, 60,000, last summer, according to the Georgetown News-Graphic
. Reaching that ceiling meant the credit for the Camry, Highlander, and Lexus vehicles was cut to between $775 and $1,300. The biggest credit, for Toyota Prius, was slashed from $3,150 to $1,575.
The company has said that by October, hybrid sales had dropped to their lowest level since March. The company blamed it on the dwindling credits. When the hybrid Camry was unveiled in Georgetown Oct. 12, officials predicted that eventually one in eight cars produced would be a hybrid. The Camry uses both gasoline and electricity, resulting in better fuel economy.
The 2007 Kentucky General Assembly will convene in January.
Originally posted on Fleet Financials