Hi Tim! Yes, the $7,500 federal tax credit does apply to hybrid cars, but the amount is dependent on the size of the battery in the hybrid car. Currently, $417 will be given per kilowatt hour. Details can be read here: https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d This advice does not represent legal or tax advice and it is wise to consult your tax adviser to see how you qualify. Hope this helped!