Hybrid Tax Credit Available for Colorado Looming

As we near the last two state quarters available for existing tax credits, perhaps it’s not a bad idea to examine what hybrid tax credit qualifications are available.

According to a recent news story by ABC News Channel 13, KRDO.com, a deadline for available tax credits in the state of Colorado is looming. Governor Bill Ritter signed House Bill 1331 this week.

The bill will replace existing hybrid tax credits with a more expansive range of cars that are eligible to receive the credit, while phasing out other cars that are currently eligible.

Automobile manufacturers such as Toyota, Honda, and Ford produce hybrid vehicles that meet gas mileage and emission standards and qualify for a tax credit.

Although there are limits as to the amount of tax credits the federal government gives out. Once the manufacturer has sold 60,000 of a particular model the tax credit is no longer provided.

The state has an index discussing different aspects of the alternative fuel tax credit. Please see the web site to evaluate whether you would meet any of these tax credits when considering a hybrid purchase.

What does this have to do with the oil and gas industry here in Denver? I would answer that question in the most profound way I am able to come up with – it depends on how you look at it.

I believe every industry impacts the other, and, while this may factor into conservation of oil in the short term, it is important to note that oil and gas is utilized for so many other aspects of our everyday lives it is mind boggling to think about sometimes.

However, I think when prices are high as they were a year ago; consumers are prompted to take a closer look at how they personally use the most evident oil product in their lives and that is the fuel in their automobiles.

I fear, however, with the lower price of fuel at the pump in recent months, consumers are going back to their old behavior patterns, and the tax credit incentives may not be enough.