Local News
Hybrid tax credits beginning to phase out 
06:37 PM CDT on Wednesday, July 5, 2006
If you're interested in a hybrid car, you might not want to wait much longer. Thousands of dollars in tax credits are starting to be phased out. The first hybrid car to lose its tax incentive will be Toyota's Prius, because it's the most popular car. "It saves you money and the overall cost is going to save you in the long run. You get better gas mileage. It'll save you there," said B ill Brown, Champion Toyota. But the federal government's tax credit on Toyota hybrids, which can be thousands of dollars per car, won't be offered after the first of the year. That's because Congress capped the number of vehicles that could be sold under the program. "I don't think it'll affect it; honestly, there's just such a demand. There was a demand for the car before the tax break, and we don't foresee a drop-off in sales simply because of the tax break," Brown said. In San Marcos, at Classic Honda, two hybrids were left on the lot. "At least two to three a day on average: people requesting hybrid vehicles - mostly Civics," said Lee Calvert, Classic Honda. Honda still has not reached its cap for tax credits, but Calvert says he doesn't expect to see a change in sales when it does. "Accord hybrid sales are not as strong as Civic hybrid sales, mainly because it's not a huge increase in fuel efficiency like you see with the Civic," Calvert said. But fuel efficient non-hybrids are also big sellers. "I just wanted something economical and small and good on gas," said Holly Parks. And she said she found it, even without the hybrid. American-made hybrids, including the Ford Escape, will probably be the last cars to lose that tax credit, because they were some of the last cars to get into the market.
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