The figure I've seen is that it costs roughly $4,000 more for a small hybrid compared to the same model in standard mode. So this would probably convince quite a few people to go hybrid.
I've been thinking about buying a gas saving car next time around, but hybrids don't look worth paying extra for. Maybe this will change the picture.
But it depends on several factors. What do they mean by "domestic"? Does that include, say, a Honda or Toyota made in the U.S.?
And does this tax break come off the bottom line, or will it be killed by the AMT? All my other tax breaks are killed by the AMT, including exemptions for children.
Inquiring minds want to know.
When you are looking, test drive the Prius even if you think you don't want it. My husband fell in love with the Prius after driving it. He's a computer geek and was interested in the technology, but he's practical and loved the way it drove.