This week I took a ride in a Toyota Prius.  I immediately called my husband and informed him that our next car would be a Prius.

It wasn't just the cool design, which I have to say is very snazzy (oh God, when did I start sounding like my mother?). 

It wasn't just the 46 MPG mileage on the highway - an estimated combined 55 MPG city/highway.  It's even better in the city, where we do most of our driving, since it switches from gas to electric at lower speeds.

It wasn't even the warm fuzzy feeling I got when I could see from the display how much energy I was saving.  Or the nifty keyless entry and funky ignition system.  Or the remarkably attractive price tag. 

Okay, it was sort of the price tag.  For one, the fanciest package (leather seats, bluetooth, the whole bit) works out to under $30,000.  And then there's the savings in gas.  But immediately, there's a federal tax credit available when you purchase a Prius - or one of several other hybrid vehicles that qualify under the tax laws.  Note that I said "credit" and not "deduction".  The difference is fairly significant.  A "deduction" is merely subtracted from your overall income - before figuring your tax - and may be subject to limits, floors, ceilings, etc.  But a "credit" is subtracted from your actual tax due - that's a huge difference!  Depending on your tax bracket, a credit of say, $1000, could be equal to an out of pocket savings of $3000 - $5000.  And (deep intake of breath here), some states like Pennsylvania, also offer a tax credit.  Now we're talking tax savings!

For the 2007, the credit available for the purchase of a new Prius is about $1575.  It used to be higher but the credit amount begins to phase out after the manufacturers meet quarterly sales of 60,000 qualified hybrid cars.  And yes, the Prius is flying out of showrooms.  Since Toyota has reached its quota, the credit isn't as high as some of the others; this applies to Toyota and Lexus vehicles.  It is worth noting that the Honda Civic GX, due to its ultra-efficient, ultra-clean engine, has a guaranteed full credit through 2010, regardless of sales.  The credits of some of the other vehicles are affected by their engine efficiency; that's why the GMC Sierras have a lower credit, for example.

The credit is available for the purchase (not a lease) of new, qualifying vehicles purchased or used after January 1, 2006.  Here's a list:

Model Year 2008

• Ford Escape 2WD Hybrid Model Year 2008:  $3,000
• Mercury Mariner 2WD Hybrid Model Year 2008:  $3,000
• Ford Escape 4WD Hybrid Model Year 2008:  $2,200
• Mercury Mariner 4WD Hybrid Model year 2008:  $2,200

Model Year 2007

• Chevrolet Silverado 2WD Hybrid Pickup Truck:  $250
• Chevrolet Silverado 4WD Hybrid Pickup Truck:  $650
• Ford Escape Hybrid 2WD:  $2,600
• Ford Escape Hybrid 4WD:  $1,950
• GMC Sierra 2WD Hybrid Pickup Truck:  $250
• GMC Sierra 4WD Hybrid Pickup Truck:  $650
• Honda Accord Hybrid AT:  $1,300
• Honda Accord Hybrid Navi AT:  $1,300
• Honda Civic GX:  $4,000
  
• Honda Civic Hybrid CVT:  $2,100
• Lexus GS 450h:  $775
• Lexus RX 400h 2WD and 4WD:  $1,100
• Mercury Mariner 4WD Hybrid:  $1,950
• Nissan Altima Hybrid:  $2,350
• Saturn Aura Hybrid:  $1,300
• Saturn Vue Green Line:  $650
• Toyota Camry Hybrid:  $1,300
• Toyota Prius:  $1,575
• Toyota Highlander Hybrid 2WD and 4WD:  $1,300

Model Year 2006

• Chevrolet Silverado 2WD Hybrid Pickup Truck:  $250
• Chevrolet Silverado 4WD Hybrid Pickup Truck:  $650
• Ford Escape Hybrid (Front) 2WD:  $2,600
• Ford Escape Hybrid 4WD:  $1,950
• GMC Sierra 2WD Hybrid Pickup Truck:  $250
• GMC Sierra 4WD Hybrid Pickup Truck:  $650
• Honda Accord Hybrid AT w/updated calibration and Navi AT w/updated calibration:  $1,300
• Honda Civic GX:  $4,000
  
• Honda Civic Hybrid CVT:  $2,100
• Honda Insight CVT:  $1,450
• Lexus RX400h 2WD:  $1,100
• Lexus RX400h 4WD:  $1,100
• Mercury Mariner Hybrid 4WD:  $1,950
• Toyota Highlander 2WD Hybrid:  $1,300
• Toyota Highlander 4WD Hybrid:  $1,300
• Toyota Prius:  $1,575

Model Year 2005

• Ford Escape 2 WD Hybrid:  $2,600
• Ford Escape 4 WD Hybrid:  $1,950
• Honda Accord Hybrid AT and Navi AT:  $650
• Honda Civic GX:  $4,000
  
• Honda Civic Hybrid MT and CVT:  $1,700
• Honda Insight CVT:  $1,450  
• Toyota Prius:  $1,575

So, do something good for the environment and your bank account and give some of these vehicles a whirl!