Alternative Motor Vehicle Credit

Posted on May 8, 2009 by Camron Hoorfar

Looking to buy a hybrid car?  Besides the great gas mileage and the benefits to the enviroHybrid Logonment, there is one more benefit that you might have been unaware of:  a tax credit!

The Energy Policy Act of 2005 replaced the clean-fuel burning deduction with a tax credit. A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation. The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006.

The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.

Hybrid vehicles have drive trains powered by both an internal combustion engine and a rechargeable battery. Many currently available hybrid vehicles may qualify for the tax credit.

The following is a list of 2008-2009 vehicles available for the tax credit and the tax credit amount for each qualified vehicle.  However, vehicles from 2005-2009 are able to qualify for the tax credit.  Click here to see a list of the qualified 2007 and older year vehicles.

2009 Model Year Hybrid Vehicles
 

Make 

Model 

Credit Amount

Chrysler

Aspen Hybrid

$2,200

Dodge 

Durango Hybrid

$2,200

Ford 

Escape Hybrid 2WD

$3,000

Ford

Escape Hybrid 4WD

$1,950

Mazda

Tribute Hybrid 2WD

$3,000

Mazda

Tribute Hybrid 4WD

$1,950

Mercury

Mariner Hybrid 2WD

$3,000

Mercury

Mariner Hybrid 4WD

$1,950

Nissan 

Altima Hybrid

$2,350

2008 Model Year Hybrid Vehicles
 
 

Make

Model

Credit Amount

Chevrolet

   Malibu Hybrid

$1,300

Chevrolet

Tahoe Hybrid 2WD and 4WD

 $2,200

 Ford

 Escape Hybrid 2WD

 $3,000

 Ford

 Escape Hybrid 4WD

 $2,200

GMC

Yukon Hybrid 

$2,200

Honda** 

Civic CVT

Purchase Date

Prior to 1/1/08

$2,100

1/1/08 — 6/30/08

$1,050

7/1/08 — 12/31/08

$525

1/1/09 and later

$0

Mazda 

Tribute 2WD

$3,000

Mazda 

Tribute 4WD

$2,200

 Mercury

 Mariner Hybrid 2WD

 $3,000

 Mercury

 Mariner Hybrid 4WD

 $2,200

Nissan 

Altima Hybrid

$2,350

Saturn

   Aura hybrid

$1,300

 Saturn

Vue Green Line

$1,550

Toyota*

Camry Hybrid

Purchase Date

1/1/06 — 9/30/06

$2,600

10/1/06 –3/31/07

$1,300

4/1/07 — 9/30/07

$   650

10/1/2007 and later

$       0

Toyota*

Prius

Purchase Date

1/1/06 — 9/30/06

$3,150

10/1/06 –3/31/07

$1,575

4/1/07 — 9/30/07

$787.50

10/1/2007 and later

$       0

Toyota*

Highlander  Hybrid 4WD

Purchase Date

1/1/06 — 9/30/06

$2,600

10/1/06 –3/31/07

$1,300

4/1/07 — 9/30/07

$   650

10/1/2007 and later

$       0

Lexus*

RX 400h 2WD and 4WD

Purchase Date

1/1/06 — 9/30/06

$2,200

10/1/06 –3/31/07

$1,100

4/1/07 — 9/30/07

$   550

10/1/2007 and later

$       0

Lexus*

LS 600h L Hybrid

Purchase Date

1/1/06 — 9/30/06

$1,800

10/1/06 –3/31/07

$900

4/1/07 — 9/30/07

$   450

10/1/2007 and later

$       0

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 hybrid passenger automobile or light truck or advance lean burn technology motor vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.

More information on the latest hybrid quarterly sales is available.

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