Tax Credits for Hybrid Vehicles
Pursuant to Internal Revenue Code Section 30B, the IRS has certified nine vehicles for the hybrid car tax credit. These vehicles and credit amounts include the:
- 2005 Toyota Prius - $3,150
- 2006 Ford Escape Hybrid Front Wheel Drive - $2,660
- 2006 Ford Escape Hybrid Four Wheel Drive - $1,950
- 2006 Mercury Mariner Hybrid Four Wheel Drive - $1,950
- 2006 Toyota Prius - $3,150
- 2006 Toyota Highlander Four Wheel Drive Hybrid - $2,600
- 2006 Toyota Highlander Two Wheel Drive Hybrid - $2,600
- 2006 Lexus RX 400h Two Wheel Drive - $2,200
- 2006 Lexus RX400h Four Wheel Drive - $2,200
To qualify for these credits, taxpayers must have purchased the vehicles in 2006 and they must claim the credit up to the end of the first calendar quarter after the quarter in which the manufacturer sells the 60,000th credit-eligible vehicle. The allowable credit is reduced to 50% and 25% in the second/third and fourth/fifth quarters, respectively, after this period. The credit is not allowable after this time period.
Kreig Mitchell
1942 Broadway, Suite 314
Boulder, CO 80302
Ph. 303.521.0053
http://www.irstaxtrouble.com
