Vehicles that still apply for tax credit in Bush' administrations "phase out"

How to claim an Alternative Motor Vehicle Credit

(from Honda's website : http://automobiles.honda.com/models/clean_fuel_tax_info.asp?ModelName=Civic+Hybrid )

"Customers who purchase a new 2005, 2006, or 2007 Honda hybrid vehicle
on or after January 1, 2006 may be eligible for federal tax credits
associated with the Energy Policy Act of 2005. "

From the IRS: "Beginning October 1, 2007, taxpayers who buy a Toyota hybrid cannot claim the related tax credit."

Honda Models Eligible for Federal Tax Credit:

2007 Honda Civic: Hybrid CVT :...............................$ 2,100 *
2007 Honda Accord Hybrid AT : ..............................$ 1,300 *
2007 Honda Accord Hybrid Navi AT : .....................$ 1,300 *

2006 Honda Civic Hybrid CVT..................................$ 2,100
2006 Honda Insight CVT...........................................$ 1,450
2006 Honda Accord Hybrid AT................................$ 1,300
2006 Honda Accord Hybrid AT (without updated control calibration) : $ 650

2005 Honda Civic Hybrid (SULEV) MT 5................$ 1,700
2005 Honda Civic Hybrid (SULEV) CVT..................$ 1,700
2005 Honda Insight CVT.............................................$ 1,450
2005 Honda Accord Hybrid AT..................................$ 650

(The Toyota Prius got a $ 3,100 credit for the 2006 tax year; see
http://www.irs.gov/pub/irs-pdf/f8910.pdf )

Please note that this tax credit replaces the tax deductions
that were available prior to January 1, 2006.
Vehicles purchased before January 1, 2006 are not eligible for this credit.

In order to qualify for the hybrid tax credit:

1. You must purchase and take delivery of a qualifying vehicle on or after January 1, 2006.

2. The vehicle must be new (used vehicles do not qualify).

3. You must purchase the vehicle (lessees do not qualify for the credit)

4. You must purchase the vehicle with the intention of using it, not reselling it.

5. You must have proof of the vehicle's purchase and delivery date.

Limitations to the tax credit

In addition to the above rules, there are also some limitations to the hybrid tax credit

Get the facts at http://www.irs.gov/newsroom/article/0,,id=161076,00.html.

1. As stated in the chart above, the tax credit for the 2006 Accord Hybrid is $1,300 with updated control calibration software and $650 without the updated software.
Honda is sending a letter to owners of Accord Hybrid models without the latest control calibration software recommending that they visit a dealer for a free software update as soon as possible this year to improve their mileage and their potential tax credit.



2. The IRS has created a phase-out schedule based on calendar quarters,
beginning in whichever quarter a manufacturer sells its 60,000th qualifying vehicle.



Honda hybrid vehicles purchased during Calendar Year 2006 should qualify for the full tax credit described in the chart above.

For Calendar Year 2007, Honda expects to surpass the 60,000 hybrid sales mark, at which time the tax credit will be reduced.





References/Links

Please see the following for more information:



* "Honda Announces Tax Credits for Hybrids"

* "Seven Honda Vehicles Certified for New Energy Tax Credit"

* "Tax Form 8910: Alternative Motor Vehicle Credit (.pdf)"