We know that, because of the Prius' popularity, Toyota and Lexus hybrid vehicles will lose their IRS tax credits at the end beginning of October. We've also know it was likely that Honda would finally sell 60,000 hybrids in the U.S. and so begin the mandated halving of IRS tax credits .The IRS and Honda have now announced that this has indeed come to pass (61,625 as of the end of July) and so, starting on January 1, 2008, the tax credits will be sliced in half. Until that day, tax credits are as follows:

• Honda Accord Hybrid Model Year 2005 $650
• Honda Accord Hybrid, Model Year 2007 $1,300
• Honda Accord Hybrid Navi Model Year 2007 $1,300
• Honda Civic Hybrid Model Year 2007 $2,100

For the first half of 2008, these credits will be half of the amount listed. In the second half, take off another 50 percent. Once we get to 2009, unless the laws change, no Honda hybrid will qualify for any IRS tax credits.

Related:

• Year to date sales of hybrid models, Honda close to 60,000 tax-break limit
• 2008 Mazda Tribute hybrid SUVs will qualify for tax credit
• Where federal rebates for Toyota and Lexus hybrids stand as of Oct. 1, 2006

[Source: IRS, Honda]

In an announcement that is shocking to nobody, Honda again was chosen (for the third year in a row) to pace the IndyCar series for 2007. The model chosen was the Accord Hybrid, which makes sense, as the Accord, and especially the hybrid version, is largely considered Honda's top of the line model, and the highest-performing version of the Accord. For those unaware, the Accord hybrid uses Honda's third generation IMA, or Integrated Motor Assist, which combines an electric motor with the 3.0 liter gasoline V6 engine used in other Accord models.

Additionally, Honda will be supplying trucks and support vehicles for the series again this year. Again, this is not surprising, as Honda is the sole engine supplier for IndyCar, and prepares and maintains the engines under their Honda Performance Development (HPD) subsidiary. The IndyCar Series will run on 100 percent ethanol fuel this year.

Changes to the vehicle are few, consisting mainly of safety requirements such as a roll-cage and high performance wheels and tires. Johnny Rutherford, the pace car driver for the year and past Indy 500 winner, says that no other changes are needed, "The available power and torque were both greater than I expected. The Hybrid is capable of performing everything that I ask of it on race weekends, and more."

Related:

• President Bush checks out IRL car that runs on ethanol

[Source: Paddock Talk]

The British government delivered quite the smack down to Honda recently when it decided not to award potential buyers "carbon grants" as incentives to buy green. Despite Honda knowing that this predicament would not improve the bottom line, company spokespeople say Honda will contine to build green in the UK and hope that both car buyers and the government will do the right thing sooner or later. 

A survey Honda conducted to bolster its cause said that 35 percent of the British population think the government is most responsible for getting motorists to drive greener cars, and 70 percent of asthma sufferers believe that the government is not doing enough to reduce traffic fumes.

[Source: Askaprice.com]

American Honda Motor has received its ruling from the Internal Revenue Service on the allowable tax credits for its hybrid cars for the 2006 tax year, and it's good news for car buyers.

The 2006 Civic Hybrid (shown at right accepting its World Green Car award) gets the biggest boost, with a $2,100 tax credit, while the '06 Accord Hybrid and the automatic transmission '06 Insight are eligible for credits of $1,300 and $1,450, respectively.

Only the IRS and your tax accountant know for sure what tax credit you may be eligible for, so check it out before you sign on the dotted line for that new hybrid.

[Source: American Honda]