GOOD EARTHKEEPING By Sandy Batty: Purchasing gas-electric hybrid car can get you $1,500 deduction on income taxes.
By: Sandy Batty
Our nation’s dependence on foreign oil has hit an all-time high; we now import over half the petroleum we use. Approximately two-thirds of the petroleum we consume as a nation is for transportation. Our heavy reliance on petroleum has negative impacts on the environment, the economy and national security. The good news is that it has never been easier for the average person to do something about this problem.
The federal government is currently offering a financial incentive to get people into the most fuel-efficient, low-polluting vehicles available through conventional auto dealers. Purchase a new hybrid-electric vehicle in 2004 and you can take a $1,500 "Clean Fuel" deduction on your 2004 income tax bill, whether you itemize or take the standard deduction.
Hybrid-electric vehicles, or HEVs, are a new generation of automobiles that look and feel much the same as traditional cars, but have an electric motor to supplement their super-efficient internal combustion gasoline engines. They squeeze extra miles out of each gallon of gasoline by seamlessly alternating between the two power sources as the vehicle is driven, depending on conditions. The gasoline engine constantly recharges the batteries that run the electric motor, so it is always ready for action; no plugging in or down time. The battery is also recharged by the action of braking, recapturing energy that is lost in conventional cars. In addition to using much less fuel, these cars emit less than half the polluting hydrocarbons and nitrogen oxides produced by similar non-HEVs.
Currently, two auto manufacturers are selling hybrids to the public: Honda and Toyota. These manufacturers now have several years of HEV sales under their belts, and they have refined and improved their products with each new model year. The five-passenger Toyota Prius, named Motor Trend’s 2004 "Car of the Year," is the most popular and gets over 50 miles per gallon. Honda offers two models, the two-seater Insight (60-70 mpg) and the five-passenger Civic Hybrid, rated at 47-50 mpg.
Several other manufacturers expect to introduce HEVs over the next year, including Dodge (pickup), Lexus (luxury sedan), Ford (SUV) and Saturn (utility). These larger vehicles will not achieve the efficiencies of the smaller Toyota and Honda cars, but will get significantly better mileage than comparable gasoline-only models.
Compared to a vehicle that gets 20 miles per gallon, a hybrid-electric vehicle getting 40+ mpg will save its owner more than $2,500 in fuel over a five-year period. Add this to the $1,500 tax deduction and your HEV lets you pocket significant savings without any sacrifice in comfort, speed or miles driven. The federal tax incentives for HEVs, however, are scheduled to decrease by $500 each year until they disappear in 2007, so the sooner you buy one, the better the return.
You can be a trendsetter in your neighborhood. Bring home a comfortable, affordable car that cuts air pollution and reliance on foreign oil. Buying an HEV also signals auto manufacturers that Americans are willing to embrace new technologies to help reduce greenhouse gases and smog, save resources and make our nation more energy-independent.
Sandy Batty is executive director of the Association of New Jersey Environmental Commissions, a nonprofit group that works with citizens and local officials to promote long-term natural resource protection and sustainable development.