If gasoline cresting the $4 per gallon mark has finally tipped the scales in favor of buying a hybrid vehicle, you should know that the pump may not be the only place you can save money. Certain hybrid vehicles are still eligible for a federal tax credit. Unlike a tax deduction, tax credits are more valuable because they directly reduce the amount of federal tax you owe. You’ll need to do some research to see if the particular hybrid you are considering will reduce your 2008 tax bill.

Popular hybrids include the Honda Civic, Toyota Prius, Chevy Tahoe / GM Yukon, and the Ford Escape.

But before you buy, make sure you check the fine print because the tax credit varies greatly for each vehicle (and one on the list above is not eligible at all - the Toyota Prius):