Federal Tax Credit For Hybrid Cars

By Chuck Brown


One of the big incentives to buying a hybrid is the Federal Tax Credit that rewards you for your 'green efforts.' The reason why the Federal government suddenly became so generous is because of the higher prices that hybrid buyers were faced with. This meant that far fewer cars would be sold.

And since the U.S. hybrid car program was started by the Federal government to begin with, they have an obligation to the American public!

Especially since our Japanese friends out-engineered us shortly after President Clinton commissioned the hybrid-electric car program back in 1993. Japan's total domination of hybrid car technology resulted in the complete withdrawal of U.S. auto manufacturers from the hybrid car program by 2001. Because by this time, the Toyota Prius was everywhere, with Honda not far behind.

Where was the U.S? Ford and a couple other Detroit automakers were quietly making deals with Toyota to license their technology. It's no secret that the U.S. has been playing "catch up" to Japan in nearly all automotive technologies for many years. And hybrid technology is definitely no exception.

Anyway, the Federal tax incentive program is a pretty good deal, and it's written to reward those good folks who elect to go for the really "good" hybrids. That is, the hybrids that substantially improve on their gasoline-only counterparts. The bigger the gas savings, the bigger the tax credit.

Here's how it works:

Every person who bought a hybrid vehicle after JAN 1st, 2006 is eligible for a tax credit up to a max of $3400, based on how the particular vehicle that he bought compares to the average car of its class and weight from 2002. Specifically, buyers will receive a $400 tax credit for every 25% improvement in efficiency.

In addition, you may be credited more money (to a max of $3400) based on how much fuel the government anticipates you will save based on the size and weight of the car.

But, there is a catch:

This credit is given to only the first 60,000 vehicles sold by each different manufacturer. Some--like Ford, for instance, don't even plan on making 60,000 hybrids through half of 2007. So each and every person who buys a Ford hybrid will get the credit.

Toyota, however, is a whole other story: They'll blow through their 60,000 quota in no time flat, leaving the remaining buyers federal tax credit-less. But then again, the Toyota Prius gets so much better gas mileage than most of Ford's larger hybrids that Ford's buyers don't stand to get anywhere near the max $3400 tax credit anyway.

The hybrid tax credit system is likely to change in the not-too-distant future, though. Hopefully, it will cover everyone until everyone is driving a hybrid!

========

Charles Brown is a successful Webmaster and publisher of Hybrid-Electric-Car.net. You will find more information on the federal tax credit for hybrid cars on his website.

Postal Rates To Rise May 14

Americans will pay 2 cents more to mail a first-class letter beginning May 14, but they will be able to buy a new type of stamp that could shield them from future price increases.

U.S. Postal Service governors approved a plan Monday to increase some rates, including raising the price of a first-class stamp to 41 cents. It also authorized the creation of a "forever stamp," which can be used indefinitely regardless of rate changes.

The forever stamp will be sold for 41 cents starting in mid-April. After that, it will be sold at the prevailing first-class rate.

Pet Food Recall

A major manufacturer of dog and cat food sold under Wal-Mart, Safeway, Kroger and other store brands recalled 60 million containers of wet pet food Friday after reports of kidney failure and deaths.

An unknown number of cats and dogs suffered kidney failure and about 10 died after eating the affected pet food, Menu Foods said in announcing the North American recall. Product testing has not revealed a link explaining the reported cases of illness and death, the company said.

"At this juncture, we're not 100 percent sure what's happened," said Paul Henderson, the company's president and chief executive officer. However, the recalled products were made using wheat gluten purchased from a new supplier, since dropped for another source, spokeswoman Sarah Tuite said. Wheat gluten is a source of protein.

The recall covers the company's "cuts and gravy" style food, which consists of chunks of meat in gravy, sold in cans and small foil pouches between Dec. 3 and March 6 throughout the U.S., Canada and Mexico.

The pet food was sold by stores operated by the Kroger Company, Safeway Inc., Wal-Mart Stores Inc. and PetSmart Inc., among others, Henderson said.

Menu Foods said a full list of brand names and lot numbers covered by the recall would be posted on its Web site - www.menufoods.com/recall - early Saturday.

The company said it manufacturers for 17 of the top 20 North American retailers. It is also a contract manufacturer for the top branded pet food companies, including Procter & Gamble Co.

P&G announced Friday the recall of specific 3 oz., 5.5 oz., 6 oz. and 13.2 oz. canned and 3 oz. and 5.3 oz. foil pouch cat and dog wet food products made by Menu Foods but sold under the Iams and Eukanuba brands.

Menu Foods' three U.S. and one Canadian factory produce more than 1 billion containers of wet pet food a year. The recall covers pet food made at company plants in Emporia, Kansas, and Pennsauken, New Jersey, Henderson said.

The company alerted the Food and Drug Administration, which already has inspectors in one of the two plants, Henderson said. The FDA was working to nail down brand names covered by the recall, agency spokesman Mike Herndon said.

Mountain Dew In McDonalds?

Restaurant giant McDonald’s, a long time partner with Coca-Cola by selling their beverages, has quietly started offering non-carbonated beverages made by Pepsi at some outlets.

Dave DeCecco, a spokesman for Purchase, N.Y.-based PepsiCo Inc., confirmed that selected McDonald’s outlets are offering Gatorade, Propel Fitness Water, Lipton Iced Tea, Tropicana orange juice and Mountain Dew. The outlets won’t sell Pepsi or Diet Pepsi.

McDonald’s had exclusively sold Coca-Cola products at its restaurants since 1955. McDonald’s launched the program in two Texas cities last year and later expanded to Kansas City, Mo. McDonald’s is selling the Pepsi products in bottles, cartons and cans and not as fountain drinks.






Sign up for DISH Network TV and get FREE Equipment and Installation in 4 Rooms!

Peanut Butter Recall Extended

ConAgra Foods Inc. has extended its recall of all peanut butter produced at a plant in Georgia by more than a year, back to October 2004, the Food and Drug Administration said Friday.

The recall covers all Peter Pan peanut butter and all Great Value peanut butter beginning with product code 2111, including peanut butter toppings.

Peanut butter has a long shelf life, and the FDA's announcement reflects the ongoing investigation, said ConAgra spokeswoman Stephanie Childs. Any peanut butter matching the recall, regardless of the date, can be returned to the place of purchase, or customers can send the lid to ConAgra for a refund.

According to the Centers for Disease Control and Prevention, 425 people have fallen ill from the outbreak of salmonella that has been traced back to the plant in Sylvester, Ga.

The FDA warned consumers who have purchased any of the products since October 2004 to discard them, and not to eat any Peter Pan or Great Value peanut butter with a product code beginning with 2111.

ConAgra on Feb. 14 recalled all Peter Pan and Great Value peanut butter made at the Georgia plant after federal health officials linked the product to an outbreak that began in August. At that time the recall applied to all peanut butter made since December 2005.

To obtain a refund, consumers can return the product to the store where they bought it or mail in lids with their names and addresses to ConAgra Foods, P.O. Box 3768, Omaha, NE 68103.

Identity Theft Insurance

What is identity theft insurance and do I need it? Identity theft insurance is designed to help consumers cover the costs stemming from repairing the damage left by criminals who rob an individual's personal details to launch spending sprees.

Consumers aren't liable for purchases made by thieves. The insurance would pay for the costs associated with cleaning up the mess left by identity theft, such as clearing up false credit card charges and fixing credit ratings. Such costs would include long-distance phone calls, notary charges, copies, lost wages from taking time off from work to clear your name, and hiring a lawyer to help resolve the problem.

All the major underwriters of homeowners' insurance offer products or are in the process of rolling out such offerings, according to John Spagnuolo, spokesman for the Insurance Information Institute, an industry trade group. He said premiums for an individual policy average between $25 and $50 a year for coverage of roughly $15,000 to $20,000.

Some consumer advocates aren't fans of identity theft policies, saying individuals would benefit more from taking steps to protect themselves such as regularly checking their credit reports. Twenty-six states have adopted laws that allow consumers to freeze access to their credit reports, letting them control who can see their credit information. This prevents crooks from opening fraudulent accounts using stolen information, according to Consumers Union.

Gail Hillebrand, a senior attorney at Consumers Union, said under the credit freeze laws consumers get a special pin number that is necessary to give creditors access to credit reports. To see which states have such laws and how to implement a freeze, go to http://www.FinancialPrivacyNow.org.

Passport Deals

It's been a month since new travel rules took effect foir Americans. Anyone flying into the U.S. from Mexico, the Caribbean or Canada needs a passport, even young children. Most Americans don't have a passport, so there is a sense of urgency to buy them, with spring and summer rapidly approaching. The cost is $95 for adults and $82 for children under the age of 16.

Some hotels in Mexico and Canada, and lots of resorts in the Caribbean are running promotions to compensate U.S. tourists who need to buy a passport. To qualify for these offers, which usually equal the cost of a new passport, you need to make that country your first stop with that passport and stay a minimum number of nights.

- From now through the end of April, show your new passport at a Marriott or Renaissance resort in the Caribbean or Mexico and you'll get a $100 per room resort credit.

- At W hotels in Mexico City and Montreal your new passport will get you a free taxi ride to the hotel and a free drink when you arrive.

There are many other examples out there. Click here for more information from consumer expert Herb Weisbaum.