Even though a manufacturer has certified a
vehicle, a taxpayer must meet the following requirements to
qualify for the credit:
-
The vehicle must be placed in service
after 12-31-05 and purchased on or before 12-31-10.
-
The original use of the vehicle must
begin with the taxpayer claiming the credit.
a. The credit may only be claimed by the original
owner of a new, qualifying, hybrid vehicle and does
not apply to a used hybrid vehicle.
-
The vehicle must be acquired for use
or lease by the taxpayer claiming the credit.
a. The credit is only available to the original
purchaser of a qualifying hybrid vehicle. If a
qualifying vehicle is leased to a consumer, the
leasing company may claim the credit.
b. For qualifying vehicles used by a tax-exempt
entity, the person who sold the qualifying vehicle
to the person or entity using the vehicle is
eligible to claim the credit, but only if the seller
clearly discloses in a document to the tax-exempt
entity the amount of credit.
-
The vehicle must be used
predominantly within the United States.
Credit Phase Out
The new qualified hybrid motor vehicle credit
begins to phase out in the second calendar quarter after the
calendar quarter in which at least 60,000 of the manufacturer’s
qualifying passenger automobiles and light trucks have been
sold. Notice 2006-9 requires manufacturers that have received
acknowledgement of its certification must submit to the Service
a report of the number of qualified vehicles sold to a retail
dealer during the calendar quarter. For this purpose, qualified
vehicles are any passenger automobile or light truck that is a
new advanced lean bury technology motor vehicle or a qualified
hybrid motor vehicle. After review of the quarterly reports, the
Service will issue an acknowledgement letter to the vehicle
manufacturer stating whether purchasers many continue to rely on
the certification.
Notice 2006-78 announced
the credit phase out schedule for advanced lean burn technology
vehicles and hybrid vehicles manufactured by Toyota Motor Sales
USA, Inc. (Toyota and Lexus vehicles). For the period of 10-1-06
to 3-31-07, purchasers of qualifying vehicles are eligible for
50% of the allowable credit. For the period of 4-1-07 to
9-30-07, purchasers of qualifying vehicles are eligible for 25%
of the allowable credit. The table below includes both the full
credit and the reduced credit amount depending upon when the
vehicle was purchased.
The date of purchase determines the amount of
the credit available for a vehicle, i.e. whether a vehicle is
eligible for the full credit or whether a portion of the credit
is phased-out. The placed in service date determines the taxable
year in which the credit may be claimed.
For example, if consumer A purchases a Prius
on Sept. 30, 2006, and takes possession in February 2007,
consumer A can claim the full credit for 2007, the year in which
the vehicle is placed in service. On the other hand, if consumer
B purchases a Prius on Oct. 1, 2006, and takes possession of the
vehicle in February 2007, Consumer B can claim 50% of the credit
in 2007, the year in which the vehicle is placed in service.
Eligible Vehicles
As of Dec. 14, 2006, the Internal Revenue
Service had acknowledged the manufacturers’ certifications of
the following qualified hybrid vehicles (arranged by model year)
and credit amounts (additional vehicles may subsequently be
acknowledged. Further acknowledgements will be included in a
revised summary page):
* Effective 10-1-06, Toyota and Lexus
vehicles qualify for reduced credit amounts.
2008
|
Make |
Model |
Credit Amount |
News Release # |
|
Ford |
Escape Hybrid 2WD |
$3,000 |
IR 2007-22, Jan. 31, 2007 |
|
Ford |
Escape Hybrid 4WD |
$2,220 |
IR 2007-22, Jan. 31, 2007 |
|
Mercury |
Mariner Hybrid 2 WD |
$3,000 |
IR
2007-22, Jan. 31, 2007 |
|
Mercury |
Mariner Hybrid 4WD |
$2,200 |
IR
2007-22, Jan.
31, 2007 |
2007
|
Make |
Model |
Credit Amount |
News Release # |
|
Chevrolet |
Silverado 2WD Hybrid
Pickup Truck |
$ 250 |
IR-2006-108, July 11, 2006
|
|
Chevrolet |
Silverado 4WD Hybrid
Pickup Truck |
$ 650 |
IR-2006-108, July 11, 2006
|
|
Ford |
Escape Hybrid 2WD |
$2,600 |
IR-2006-98, June 21, 2006 |
|
Ford |
Escape Hybrid 4WD |
$1,950 |
IR-2006-98, June 21, 2006 |
|
GMC |
Sierra 2WD Hybrid Pickup
Truck |
$ 250 |
IR-2006-108, July 11, 2006 |
|
GMC |
Sierra 4WD Hybrid Pickup
Truck |
$ 650 |
IR-2006-108, July 11, 2006 |
|
Honda |
Accord AT |
$1,300 |
IR 2006-183, Nov. 22, 2006 |
|
Honda |
Accord Navi |
$1,300 |
IR 2006-183, Nov. 22, 2006 |
|
Honda |
Civic CVT |
$2,100 |
IR 2006-183, Nov. 22, 2006 |
|
Lexus* |
GS450h |
Purchase Date |
|
IR-2006–67, April 25, 2006 |
|
1-1-06 / 9-30-06 |
$1,550 |
|
10-1-06 / 3-31-07 |
$ 775 |
|
4-1-07 / 9-30-07 |
$ 387.50 |
|
10-1-07 |
$ 0 |
|
Lexus * |
RX 400h 4WD |
Purchase Date |
|
IR-2006-154, Sept. 30, 2006 |
|
1-1-06 / 9-30-06 |
$2,200 |
|
10-1-06 / 3-31-07 |
$1,100 |
|
4-1-07 / 9-30-07 |
$ 550 |
|
10-1-07 |
$ 0 |
|
Lexus* |
RX 400h 2WD |
Purchase Date |
|
IR-2006-154, Sept. 30, 2006 |
|
1-1-06 / 9-30-06 |
$2,200 |
|
10-1-06 / 3-31-07 |
$1,100 |
|
4-1-07 / 9-30-07 |
$ 550 |
|
10-1-07 |
$ 0 |
|
Mercury |
Mariner Hybrid 4WD |
$1,950 |
IR-2006-98, June 21, 2006 |
|
Saturn |
Vue Green Line |
$ 650 |
IR-2006-110, July 11, 2006 |
|
Toyota* |
Camry Hybrid |
Purchase Date |
|
IR-2006–67, April 25, 2006 |
|
1-1-06 / 9-30-06 |
$2,600 |
|
10-1-06 / 3-31-07 |
$1,300 |
|
4-1-07 / 9-30-07 |
$ 650 |
|
10-1-07 |
$ 0 |
|
Toyota* |
Prius |
Purchase Date |
|
IR-2006-154, Sept. 30, 2006 |
|
1-1-06 / 9-30-06 |
$3,150 |
|
10-1-06 / 3-31-07 |
$1,575 |
|
4-1-07 /9-30-07 |
$ 787.50 |
|
10-1-07 |
$ 0 |
|
Toyota* |
Highlander Hybrid 2WD |
Purchase Date |
|
IR-2006-154, Sept. 30, 2006 |
|
1-1-06 / 9-30-06 |
$2,600 |
|
10-1-06 / 3-31-07 |
$1,300 |
|
4-1-07 / 9-30-07 |
$ 650 |
|
10-1-07 |
$ 0 |
|
Toyota* |
Highlander Hybrid 4WD |
Purchase Date |
|
IR-2006-154, Sept.
30, 200 |
2006
|
Make |
Model |
Credit Amount |
News Release # |
|
Chevrolet |
Silverado 2WD Hybrid
Pickup Truck |
$ 250 |
IR-2006-108, July 11. 2006 |
|
Chevrolet |
Silverado 4WD Hybrid
Pickup Truck |
$ 650 |
IR-2006-108, July 11. 2006 |
|
Ford |
Escape Hybrid 2WD Front
Wheel Drive |
$2,600 |
IR-2006-56, April 7, 2006 |
|
Ford |
Escape Hybrid 4WD |
$1,950 |
IR-2006-56, April 7, 2006 |
|
GMC |
Sierra 2WD Hybrid Pickup
Truck |
$ 250 |
IR-2006-108, July 11. 2006 |
|
GMC |
Sierra 4WD Hybrid Pickup
Truck |
$ 650 |
IR-2006-108, July 11. 2006 |
|
Honda |
Accord Hybrid AT
w/updated calibration* |
$1,300
$ 650 - Vehicles
without updated calibration |
IR-2006-86, June 1, 2006 |
|
Honda |
Accord Hybrid Navi AT
w/updated calibration* |
$1,300
$ 650 - Vehicles
without updated calibration |
IR-2006-86, June 1, 2006 |
|
Honda |
Civic Hybrid CVT |
$2,100 |
IR-2006-86, June 1, 2006 |
|
Honda |
Insight CVT |
$1,450 |
IR-2006-86, June 1, 2006 |
|
Lexus* |
RX400h 2WD |
Purchase Date |
|
IR-2006-57, April 7, 2006 |
|
1-1-06 / 9-30-06 |
$2,200 |
|
10-1-06 / 3-31-07 |
$1,100 |
|
4-1-07 / 9-30-07 |
$ 550 |
|
10-1-07 |
$ 0 |
|
Lexus* |
RX400h 4WD |
Purchase Date |
|
IR-2006-57, April 7, 2006 |
|
1-1-06 / 9-30-06 |
$2,200 |
|
10-1-06 / 3-31-07 |
$1,100 |
|
4-1-07 / 9-30-07 |
$ 550 |
|
10-1-07 |
$ 0 |
|
Mercury |
Mariner 4WD Hybrid |
$1,950 |
IR-2006-56, April 7, 2006 |
|
Toyota* |
Highlander 2 WD Hybrid |
Purchase Date |
|
IR-2006-57, April 7, 2006 |
|
1-1-06 / 9-30-06 |
$2,600 |
|
10-1-06 / 3-31-07 |
$1,300 |
|
4-1-07 / 9-30-07 |
$ 650 |
|
10-1-07 |
$ 0 |
|
Toyota* |
Highlander 4WD Hybrid |
Purchase Date |
|
IR-2006-57, April 7, 2006 |
|
1-1-06 / 9-30-06 |
$2,600 |
|
10-1-06 / 3-31-07 |
$1,300 |
|
4-1-07 / 9-30-07 |
$ 650 |
|
10-1-07 |
$ 0 |
|
Toyota* |
Prius |
Purchase Date |
|
IR-2006-57, April 7, 2006 |
|
1-1-06 / 9-30-06 |
$3,150 |
|
10-1-06 / 3-31-07 |
$1,575 |
|
4-1-07 / 9-30-07 |
$ 787.50 |
|
10-1-07 |
$ 0 |
2005
|
Make |
Model |
Credit Amount |
News Release # |
|
Ford |
Escape HEV 2WD |
$2,600 |
IR-2006-165, Oct. 20, 2006 |
|
Ford |
Escape HEV 4WD |
$1,950 |
IR-2006-165, Oct. 20, 2006 |
|
Honda |
Accord Hybrid AT |
$ 650 |
IR-2006-86, June 1, 2006 |
|
Honda |
Accord Hybrid Navi AT |
$ 650 |
IR-2006-86, June 1, 2006 |
|
Honda |
Civic Hybrid CVT |
$1,700 |
IR-2006-86, June 1, 2006 |
|
Honda |
Civic Hyrid MT |
$1,700 |
IR-2006-86, June 1, 2006 |
|
Honda |
Insight CVT |
$1,450 |
IR-2006-86, June 1, 2006 |
|
Toyota* |
Prius |
Purchase Date |
|
IR-2006-57, April 7, 2006 |
|
1-1-06 / 9-30-06 |
$3,150 |
|
10-1-06 / 3-31-07 |
$1,575 |
|
4-1-07 / 9-30-07 |
$ 787.50 |
|
10-1-07 |
$ 0 |
|
Form 8910,
Alternative Motor Vehicle Credit, is used to claim the
qualified hybrid vehicle credit as well as for vehicles
qualifying for other provisions of the alternative motor
vehicle credit. If the
qualifying hybrid vehicle is purchased for business use,
the credit for the business use of a qualifying hybrid
vehicle is reported on
Form
3800, General Business Credit.
For qualifying hybrid vehicles
acquired for personal use, the credit is reported on the
appropriate line of the taxpayer’s
Form
1040, U.S. Individual Income Tax Return.
For additional information on the
proper reporting of the alternative motor vehicle
credit, see the instructions to Form 8910 on page two of
the form.
¹ IRC §30B potentially allows a credit
for four separate categories of vehicles: 1) Fuel Cell
vehicles, 2) Advanced Lean Burn Technology vehicles, 3)
Hybrid vehicles and 4) Alternative Fuel vehicles.
² The deduction allowable for certain hybrid vehicles
under IRC §179A is no longer available for vehicles
placed in service after December 31, 2005.
³ If the Internal Revenue Service publishes an
announcement that the certification for any specific
vehicle has been withdrawn, taxpayers cannot rely on the
certification for such a vehicle purchased after the
date of publication of the withdrawal announcement. |
|
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