Does the tax credit phase out if our joint income is over $250K? Is the Tahoe Hybrid worth the premium over the Tahoe?
Chevrolet’s Tahoe Hybrid is in no danger of losing its credit by the end of June. The full $2,200 credit on a two- or four-wheel-drive Tahoe Hybrid is still available.
While there’s no set income cap for the credit, there are limitations based on income that can affect how much the tax credit is worth. We suggest talking to a tax expert about specifics, which according to the IRS website include the Alternative Minimum Tax: “A taxpayer cannot claim the credit unless the taxpayer's regular tax liability exceeds the taxpayer’s AMT liability.”
As for whether the hybrid is worth the premium, it all depends on usage. The hybrid makes sense if you’re out towing every weekend and want to do it more efficiently. Cars.com’s Mike Hanley sums up the Tahoe Hybrid in the market in his review:
“Some consumers may wish that full-size SUVs would go to the corner of the scrap yard and die, but the fact is many folks use them to tow their campers or boats. If they're going to do it anyway, it makes sense to do it more efficiently, and that's what Chevrolet has achieved with the Tahoe Hybrid.
“The question is, will people ante up to take advantage of that increased efficiency? With a well-equipped base price of around $50,000, it's certainly not a done deal, especially when gas-powered Tahoes can be had for much less while still offering competitive fuel economy for a full-size SUV. On the other hand, if you can afford a nice camper or boat, a $50,000 towing vehicle might not be out of the question.”
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