First of, a hybrid car is a vehicle that uses on-board RESS, or rechargeable energy storage system. This is coupled with a fueled propulsion power source for the automobile’s propulsion. Hybrid car is low-gas consuming vehicle, therefore, a low-polluting vehicle.

The last character is particularly important because of the growing consciousness of the people worldwide on the need to conserve the environment.

History points to the clear difference of hybrid with all-electric cars. Electric cars use batteries charged by an external source.  On this note, almost all hybrids, save for those considered as mild-hybrid, still need gasoline and diesel as their fuel source. Other fuels are also available in the form of ethanol or other plant based oils. Hybrid vehicles also use hydrogen gas occasionally.

But what’s in the history of hybrid cars?

The history of hybrid cars is closely intertwined with the history of automobile itself. In 1898, Ferdinand Porsche, a young Czechoslovakian, designed the Lohner-Porsche carriage, a series-hybrid vehicle that utilized a one-cylinder gasoline internal combustion engine. This engine can spun a generator which powered four wheel-mounted electric motors.

The car was eventually presented at the 1900 World Exhibition in Paris. The said automobile, capable of up to 56 km/h (35 mph) fast destroyed several Austrian speed records. In 1901, it won the Exelberg Rally, with Porsche himself driving the car. Over Mass production during this time was yet to be developed, but for Porsche’s future-looking design, 300 units of this model were sold to the public.

The first Porsche model however, technically speaking as we know Porsch today, was a hand-built aluminum prototype, and was completed on June 8, 1948.

The development of the first transistor-based electric car in 1959, the Henney Kilowatt, heralded a new development in the history of automobiles as a whole, and that of history of hybrid cars in particular.  This transistor-based electric car, paved the way for the electronic speed control. Ultimately, this made the road for the development of modern hybrid electric cars possible.

The Henney Kilowatt was considered as the first modern electric car. It was a product of collaborative work between the National Union Electric Company, Henney Coachworks, Renault, and the Eureka Williams Company. Whilst the sales of the Kilowatt during this time were far from encouraging, its development served as prototype for the other automobiles down the history line of hybrid cars.

Between the 1960s and 1970s, another prototype of the earlier electric-hybrid vehicle was built by Victor Wouk.  Wouk is among the scientists involved with the development of the Henney Kilowatt automobile. For this work, some historians bestowed onto him the honor being the “Godfather of the Hybrid” hybrid cars.

For his pioneering work, Wouk installed a sample electric-hybrid drivetrain into a 1972 Buick Skylark, courtesy GM for the 1970 Federal Clean Car Incentive Program. The program was later axed by the EPA in 1976. Hybrid enthusiast and supporters continued building hybrids automobiles. These models however, were not put into mass production.

In the fading years of the twentieth century however, the history of hybrid cars will take on a new course.

1978, the regenerative-braking hybrid, was developed by Electrical Engineer David Arthurs. The said regenerative-braking is to become the core design concept of most hybrids, currently available in the market. The first attempt of Arthurs used off-the shelf components, including an Opel GT. But the voltage controller that links to the battery motor and the DC generator belonged to Arthurs.

Fast forward in the 1990s

The history of hybrid cars took the final step to modernity in terms of mass production during the Bill Clinton administration. Clinton initiated the Partnership for a New Generation of Vehicles program in September, 1993, that involved the Department of Energy, Chrysler, Ford, General Motors, USCAR, and various governmental agencies. The partnership was tasked to engineer a modern efficient and clean vehicle.

In 2001, this program was replaced George W. Bush’s own hydrogen focused FreedomCAR initiative. The focus of the FreedomCAR initiative was to fund research that are considered high risk for the private sector to engage in. The long term purpose of which is the development and production of petroleum emission.

The success of hybrid vehicles in terms of mass production however, became a reality, when the Japanese car manufacturer entered the American market. This is when the history of hybrid cars finally took its modern development. Honda Insight and Toyota Prius became the modern progenitor of modern day hybrid vehicle available today in the market.

Beginning January 1, this year, owners and buyers of several latest models of hybrid cars would be imposed hefty tax credits. Those credits will vary a lot. Several of the hybrid vehicles available in the market will still not be entitled to any tax credit at all.

What exactly is a tax credit?

The term refers to the dollar amount or tax imposed on certain hybrid car models. The tax credits vary from one hybrid model to another, sometimes depending on the unit’s overall functionality and the popularity.

New hybrid car buyers at this point are already scratching their heads, thinking about the mess they would be entering. And they have enough reasons to take anti-depressant pills.

The new tax credit for hybrid cars in the United States is part of an energy legislation forged and ratified into a full fledged law.

The new rules are set to encourage consumers into buying green vehicles, or the so called hybrid cars, which are not only gasoline efficient but also environmentally friendly.

But, problems and discrepancies come in when the changes or modifications from the old tax breaks systems for traditional gas-powered cars are altered or modified for certain hybrid cars models.

Tracking the numbers

The problems and frustrations drivers and hybrid car owners encounter in the latest wave of tax credit grants are arising from the computations of the tax credit system.

These computations are not that simple and are made morecomplicated by the two important components. The first component is the fuel economy rating. This is where most of the problems arise when calculating taxes on hybrid cars.

This is because most of the hybrid cars available in the market today fail on fuel economy ratings, which are required by the federal government before the hybrid car is qualified for a tax credit. When this happens, the effort to reduce the tax imposition for hybrid cars, and eventually entice car buyers into buying them, turns into a futile and worthless initiative.

The other component of the tax credit computation is the ‘conservation credit.’ The conservation tax credit is based on the hybrid car model’s projected and computed fuel savings on its entire life span.

In this aspect, almost all the hybrid car models available in the market today are also failing. Thus, it is certain that if you are a hybrid car this year, there is a lesser chance for you to be able to secure tax credits or tax savings.

Computing and considering the tax savings you could probably save if your hybrid car is qualified for a tax credit would certainly make you regret facing the tax system. For sure, you would have the sentiment that it could have been better if the tax credit is simply not offered at all.

List of hybrid cars on the tax credit system

To be able to get a complete and accurate listing of the new hybrid car models that are qualified to secure tax credits, visit the online site of the US Treasury.

By: Shavennah