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Thursday, April 27    |    Upstate South Carolina News, Sports and Information

Hybrid tax credit
Rewarding fuel efficiency helps us all.

Published: Thursday, April 27, 2006 - 6:00 am


South Carolina is considering giving owners of hybrid cars a tax break. The proposed incentive would provide a tax credit equal to 20 percent of the available federal tax credit for such vehicles. Federal credits of up to $3,400 are available for new hybrid vehicles bought after Jan. 1. Hybrid cars are those that offer improved gas mileage by using both gasoline and electricity. The credit also would apply to cars that use alternative fuels such as biodiesel or hydrogen.

Though the proposed state credit is small, combined with the federal tax break it adds incentive to owning a hybrid car. The proposal is forecast to reduce state tax revenues by about $1.5 million.

At a time when fuel prices are high and expected to go higher, the less fuel Americans use, the better. Other alternative fuel vehicles aren't as common, but it makes sense that a state that wants to be a forerunner in alternative-fuel technology would offer a tax credit for owners of those vehicles, too.

This bill would be an encouragement for state residents to use alternative fuels and hybrids. For that, it deserves serious consideration.


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