Finding tax credit for hybrid car

Dear Terry,
I bought a Toyota Camry Hybrid car Aug. 15, 2006. How much tax credit am I allowed on my 2006 income tax?
-- William T. Lineberry

Dear William,
The tax credit amount is a moving target because government regulations cut back on the credit as more hybrids are sold by a manufacturer.

Also, the tax credits vary according to the added fuel efficiency of a hybrid over a comparable gas-only model. The Web site FuelEconomy.gov is the source for the latest information on hybrid tax credits. According to that site, you bought your Camry early enough to qualify for a $2,600 tax credit. Had you bought it after Sept. 30, 2006, you would have gotten only $1,300. Buyers who get a Camry hybrid starting this month will get a credit of only $650.

This week

• New-car sound systems lag behind technology • Is a $250 "dealer fee" a legitimate charge on a new car? • How much tax credit do I get on my Toyota hybrid? • What should a single woman ask before she buys a car?

If you have a question for Terry, e-mail him at Driving for Dollars.