A front-wheel drive Escape hybrid is rated by the EPA with mileage of 34/31 mpg city/highway, and the four-wheel-drive model is rated at 30/27 mpg. Since the two-wheel-drive model is more fuel efficient, it has a $1,500 tax credit available, good for 2009 and 2010 models sold before September 30. A four-wheel-drive Escape qualifies for a $900 (2010) or $975 (2009) credit if sold before September 30. Currently there’s an overlap of 2009 and 2010 Escape Hybrids as the 2010s begin to filter into dealerships.
The government is phasing out Ford’s hybrid tax credit because Ford reached its production limit for the credit that was imposed by the government. At the beginning of 2009 an Escape’s tax credit was up to $3,000, but was cut to a maximum $1,500 credit for new cars sold after April 1. Another cut from October 1 to March 31, 2010 slices the current credit in half. By April 1, 2010 there won’t be any more tax credits available on Ford hybrid products. Toyota and Honda have already been through this; their hybrids don’t qualify for a hybrid tax credit any longer.
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