Just when hybrids were taking off, U.S. retreats on tax-credit policy

Wednesday, June 21, 2006

A story by David Leonhardt in International Herald Tribune reports the coming phase-out of tax credits for buyers of hybrid vehicles:

With the money saved on gasoline and the tax credit, the Honda Civic hybrid will cost slightly less over a five- year span than the regular Civic, according to Consumer Reports. The same is true of the sharp-looking new Toyota Camry hybrid, relative to a regular Camry. For those deciding between a Prius and a regular Camry, the Prius, which gets a $3,150 credit, will start generating savings in just a few years.

The tax policy is meant to give people an incentive to change their behavior, and persuading Americans to use less oil certainly sounds like one of Washington's priorities these days.

Yet, astoundingly, many of the tax credits are about to be taken away. So Americans thinking of buying a Prius or Camry hybrid should do that soon, this month or maybe next. Meanwhile, those who wonder whether U.S. policymakers mean it when they say they are serious about changing energy policy have plenty of company.