Qualifying hybrid gasoline-electric vehicles can earn a tax credit for Oregon residents and business owners. As compared to conventional vehicles, full hybrid vehicles have the potential to greatly reduce fuel consumption and exhaust emissions.
The Residential Energy Tax Credit provides tax credit incentives of up to $1,500 to encourage Oregonians to purchase hybrid gasoline-electric vehicles. The Business Energy Tax Credit offers a tax credit for business owners who purchase hybrid gasoline-electric vehicles for business use.
Residential Energy Tax Credit
Attention:
As of January 1, 2010, new gasoline-electric hybrid vehicles will no longer qualify for an Oregon Tax Credit.
New gasoline-electric hybrid vehicles purchased by December 31, 2009 will still qualify for the credit.
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A hybrid gasoline-electric vehicle is a vehicle that draws propulsion energy from on-board sources of stored energy that include both an internal combustion and a rechargeable energy storage system.
There are two tax credits available for hybrid gasoline-electric vehicles which can normally be taken together for a combined tax credit of $1,500. One tax credit of $750 is available for the vehicle itself (which is considered an alternative fuel vehicle). A second tax credit of $750 is available for the on-board charging system. (This on-board charging system credit is similar to the fueling station credit that other alternative fuel vehicles are eligible to receive.)
To qualify for a tax credit a hybrid gasoline-electric vehicle must be capable of drawing significant propulsion energy from a rechargeable on-board storage system with a minimum voltage or power capacity. In other words, either the battery or the electric motor on-board the vehicle must be powerful enough to meet certain minimum standards or both must be powerful enough, if the vehicle will be eligible for both credits (for a combined total of $1,500).
In addition, the on-board charging system that feeds into the rechargeable energy storage system in a hybrid gasoline-electric vehicle must have an active regenerative braking system integrated into the recharging system to receive a tax credit for the on-board charging system.
Hybrid gasoline-electric vehicles, purchased by December 31, 2009, that qualify for both the $750 vehicle tax credit and $750 on-board charging system credit (for a total of $1,500) include:
- Chevy Tahoe™ SUV Hybrid
- Ford Escape™ Hybrid
- GMC Yukon™ (SUV) Hybrid
- Honda Civic™ Hybrid
- Lexus™ RX 400h Hybrid
- Lexus™ GS 450h Hybrid
- Lexus™ LS 600h Hybrid
- Mazda Tribute™ Hybrid
- Mercury Mariner™ SUV Hybrid
- Nissan Altima™ Hybrid
- Toyota Camry™ Hybrid
- Toyota Highlander™ SUV Hybrid
- Toyota Prius™ Hybrid
Some vehicles in the market may use the term “hybrid” in their advertising, or you may see these vehicles listed as hybrid vehicles by magazines, newspapers, or on the Web. However, regardless of how vehicles are labeled by their manufacturers or others, they are not eligible for Oregon tax credits unless they meet the necessary minimum technical standards. Please also note that the Oregon minimum standards are more stringent than the federal tax credit program for hybrid gasoline-electric vehicles. Eligibility for a federal tax credit does not mean that the same vehicle will automatically qualify for an Oregon Residential Energy Tax Credit.
When performance information becomes available for new hybrid gasoline-electric vehicles, these vehicles will be added to the list if they qualify. Detailed information on the minimum standards for hybrid gasoline-electric vehicles can be found in the Oregon Administrative Rules for the Residential Energy Tax Credit program (see link on the right-hand column). More information on the performance of hybrid gasoline-electric vehicles can be found at www.hybridcenter.org
You can get a tax credit for converting a vehicle to use any qualifying alternate fuels, including conversion from gasoline-electric hybrid to plug-charging and get 25 percent of the conversion cost up to $750. In addition, the purchase of a fueling/charging station for these vehicles also qualifies for a tax credit of 25 percent of the costs up to $750. The maximum tax credit is $1,500 for both the vehicle and the fueling/charging station.
Hybrid gasoline-electric and alternative fuel vehicles must be registered and licensed for roadway use by the Oregon Department of Motor Vehicles to qualify for a tax credit. hybrid gasoline-electric vehicles, purchased before January 1, 2010, must be new (its original use must begin with you).
Business Energy Tax Credit
Oregon business owners who invest in new hybrid vehicles for business use can get a state Business Energy Tax Credit if purchased by December 31, 2009. Qualifying hybrid vehicles are pre-certified for the Oregon Department of Energy´s Business Energy Tax Credit. Business owners need to complete a one-step application form (see right-hand column) to apply for a Hybrid Vehicle Business Energy Tax Credit.
Business owners without an Oregon tax liability, non-profit organizations and public entities may choose to transfer their tax credit eligibility to a business or individual with an Oregon tax liability in exchange for a cash payment equal to the pass-through rate at the time of application. (Business owner with a tax liability may also choose to transfer their tax credit.) To choose this option, please check the Pass-through Option section of the Hybrid application form.
The Business Energy Tax Credit one-step Hybrid Final Certification Application form may be completed after purchasing the vehicle(s). No pre-certification application is necessary. (Please note, this process applies for Business Energy Tax Credits for hybrid gasoline-electric vehicles only if purchased before January 1, 2010. All other applications for a Business Energy Tax Credit must be sent to the Department of Energy prior to beginning a project or making a purchase.)
The eligible cost for a hybrid gasoline-electric vehicle is the cost difference between a conventional fuel vehicle, of the same class and size, and the cost of the electric hybrid. The tax credit is 35 percent of the net eligible cost. Hybrid vehicles must be registered and licensed for roadway use by the Oregon Department of Motor Vehicles if purchased before January 1, 2010 to qualify for a tax credit.
The Department of Energy uses the manufacturer suggested retail price (MSRP) base cost for the hybrid and subtracts the MSRP of the conventional comparison vehicle to derive the eligible cost of the hybrid vehicle. Please note: Your costs may be more than the base costs depending upon options and dealer charges.
The following table includes vehicles that qualify for the Business Energy Tax Credit as hybrid gasoline-electric vehicles if purchased before January 1, 2010. Other vehicles may also qualify. These vehicles qualify based on meeting the criteria of the definition in OAR 330-090-0110 (22).
Hybrid-electric vehicle
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Comparative vehicle
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Net Eligible Cost
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Chevy Tahoe™ SUV Hybrid
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Chevy Tahoe™ SUV
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$9,183
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Ford Escape™ Hybrid
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Ford Escape™
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$5,495
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GMC Yukon™ (SUV) Hybrid
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GMC Yukon™ (SUV)
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$9,183
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Honda Accord™ Hybrid
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Honda Accord™
LX V-6
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$2.054
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Honda Civic™ Hybrid
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Honda Civic™
(4-door)
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$4,840
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Lexus™ RX 400h Hybrid
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Lexus™ RX 350
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$3,680
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Lexus™ GS 450h Hybrid
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Lexus™ GS 460
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$3,000
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Lexus™ LS 600h Hybrid
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Lexus™ LS 460
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$5,018
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Mazda Tribute™ Hybrid
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Mazda Tribute™
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$3,985
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Mercury Mariner™ SUV Hybrid
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Mercury Mariner™ SUV
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$5,035
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Nissan Altima™ Hybrid
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Nissan Altima™
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$4,690
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Toyota Camry™ Hybrid
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Toyota Camry™
(4-door, 2.4L)
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$6,078
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Toyota Highlander™ SUV Hybrid
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Toyota Highlander™ SUV
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$6,550
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Toyota Prius™ Hybrid
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Toyota Corolla™
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$5,745
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Notes:
The tax credit is 35 percent of the net eligible cost.
Most recent available model year
MSRP based on information from www.edmunds.com
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Please note: These PDF forms may be filled out on your computer, printed, signed, and mailed to the Oregon Department of Energy. The forms can NOT be submitted on-line.
Residential Energy Tax Credit Program
Hybrid Vehicle Tax Credit (purchased before January 1, 2010):
Application form (PDF)
Federal incentives
Federal tax credit form
Alternative Fuel Vehicles or Charging/Fueling Systems:
Application Form (PDF)
Federal incentives
Federal tax credit form
Business Energy Tax Credit applicants must also send a review fee as explained on the application form..
Business Energy Tax Credit Program
One-step Application for Final Certification of Hybrid Vehicle
Application for Preliminary Certification for Alternative Fuel Vehicle (PDF)
Contact:
Oregon Department of Energy
625 Marion Street NE
Salem, Oregon 97301
Phone: (503) 378-4040 or
1-800-221-8035
Fax: (503) 373-7806
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