Back on the first of January of this year, Honda's hybrid tax credits began their slide down towards zero due to the fact that the automaker passed sixty-thousand hybrid sales. While you can argue with the reasoning behind the credits in the first place along with the arbitrary number of people who will get them, but the rules are what they are. So, starting on July 1, the tax credit for any Honda hybrid vehicle will be halved yet again, bringing the available credit to just one-fourth of the original level.

As of today, the Honda Civic hybrid gets a credit of $1,050. From July 1 to December 31, that credit will be $525. Don't complain too much, though, as the credit will officially run out on January 1, 2009. Ford, General Motors and Nissan have yet to hit the magic sixty-thousand number, so the full credit still applies for those manufacturers. Toyota hybrids are no longer eligible for any credit at all, as it has sold way too many Priuses to qualify any longer.

[Source: FuelEconomy.gov]

Jamaica will join the list of countries or states that are rewarding hybrid vehicle purchasers with lower taxes on the importation of the cars. According to Finance and Planning Minister Dr. Omar Davies, "Our estimate is that this led to revenue loss of approximately $550 million during the last fiscal year. However, the greater objective of reducing our energy import bill is being served." That is some positive thinking, I would say. More than just hybrid cars are likely to be issued import tax breaks, as Dr. Davies indicated that, "The tax officials and officials from the Ministry of Industry, Technology, Energy and Commerce are in further discussion about broadening the list of goods, which would be qualified." Sounds like a good idea to reward those with the foresight to focus on energy savings.

[Source: Jamaica Information Service]