Hybrid cars use a gasoline engine in combination with a battery-powered electric motor, and they can get more than double the mileage per gallon of gasoline of conventional cars. They burn less fuel while slowing or idling, and they recharge their batteries while you drive. Hybrid technology also produces a lot less global warming pollution than conventional car engines.
Hybrid Tax Credits
As Americans turn toward more fuel-efficient cars, sales of Toyota's and Honda's hybrids are booming, but hybrids still account for less than 2 percent of the new car market. American automakers missed out on the early action and are just starting to dip their toes in the water. Providing performance-based tax credits to hybrid buyers means big savings for consumers who buy the most efficient hybrids, and it helps encourage American automakers to meet the demand. Hybrid tax credits are now available through 2010, but there's a new per-manufacturer cap on the credit. This means that consumers might not be able to get a credit for the car of their choice, and could be dissuaded from buying a hybrid. Congress can encourage the continued growth of the hybrid market by lifting the per-manufacturer cap.
The Growing Hybrid Market
Here's a quick rundown of some current hybrid models. See our hybrid buyers' guide for more information.
- The Toyota Prius sedan has been available in the United States since 2000. The 2007 model is rated by the U.S. Environmental Protection Agency at 60 miles per gallon in city driving, 51 on the highway, with 55 combined.
- Honda makes hybrid versions of the Civic and the Accord. The EPA rates the 2007 hybrid Civic at a combined mpg of 50, and the Accord at 31.
- Ford became the first U.S. manufacturer to offer a hybrid when it rolled out the Escape SUV in August 2004. The current front-wheel-drive version is rated at 36 mpg in the city and 31 on the highway, 34 combined.
- By 2008, 15 hybrid models from 10 different car brands are expected to be on the market.