The Internal Revenue Service has acknowledged the certification of vehicles that qualify for the hybrid tax credit enacted by the Energy Policy Act of 2005. The tax credit for hybrid vehicles applies to vehicles purchased on or after January 1, 2006, and may be as much as $3,400 for those who purchase the most fuel-efficient vehicles.
Starting in 2006, this tax credit replaces the tax deduction of $2,000 which was previously allowed for taxpayers who purchased a new hybrid vehicle before December 31, 2005 for the clean-burning fuel deduction. The tax credit requires a different certification. Many currently available hybrid vehicles may qualify for this new tax credit.
Consumers seeking the credit may want to buy early since the full credit is only available for a limited time. Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50% of the credit. For the fourth and fifth calendar quarters, may claim 25% of the credit. No credit is allowed after the fifth quarter.
The following tax credits apply:
- 2007 Toyota Camry Hybrid: $2600
- 2007 Lexus GS 450h: $1550
- 2006 Ford Escape Hybrid, Front Wheel Drive: $2600
- 2006 Ford Escape Hybrid, Four Wheel Drive: $1950
- 2006/2007 GMC Silverado Hybrid 2WD: $250
- 2006/2007 GMC Silverado Hybrid 4WD: $650
- 2006/2007 GMC Sierra Hybrid 2WD: $250
- 2006/2007 GMC Sierra Hybrid 4WD: $650
- 2006 Honda Accord Hybrid AT without updated control calibration: $650
- 2006 Honda Accord Hybrid AT with control calibration: $1300
- 2006 Honda Insight (automatic only): $1450
- 2006 Honda Civic Hybrid: $2100
- 2006 Lexus RX400h, Two Wheel Drive: $2200
- 2006 Lexus RX400h, Four Wheel Drive: $2200
- 2006 Mercury Mariner Hybrid, Four Wheel Drive: $1950
- 2006 Toyota Highlander, Two Wheel Drive: $2600
- 2006 Toyota Highlander, Four Wheel Drive: $2600
- 2005 and 2006 Toyota Prius: $3150
- 2007 Saturn VUE GreenLine: $650
