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Hybrids
purchased or placed into service after December 31, 2005
may be eligible for a federal income tax credit of up to
$3,400.
Credit amounts begin to phase out for a given manufacturer
once it has sold over 60,000 eligible vehicles.
Vehicle
Make & Model |
Full
Credit |
Phase
Out |
No Credit |
50% |
25% |
|
Click
on a manufacturer to view vehicles certified for
New Energy Tax Credit. |
Ford
Motor Company |
Jan.
1, 2006 |
TBD |
TBD |
TBD |
2009
Ford Escape Hybrid |
2WD |
$3,000 |
-- |
-- |
-- |
4WD |
$1,950 |
-- |
-- |
-- |
2008
Ford Escape Hybrid |
2WD |
$3,000 |
-- |
-- |
-- |
4WD |
$2,200 |
-- |
-- |
-- |
2005-07
Ford Escape Hybrid |
2WD |
$2,600 |
-- |
-- |
-- |
4WD |
$1,950 |
-- |
-- |
-- |
2009
Mercury Mariner Hybrid |
2WD |
$3,000 |
-- |
-- |
-- |
4WD |
$1,950 |
-- |
-- |
-- |
2008
Mercury Mariner Hybrid |
2WD |
$3,000 |
-- |
-- |
-- |
4WD |
$2,200 |
-- |
-- |
-- |
2006-07
Mercury Mariner Hybrid |
4WD |
$1,950 |
-- |
-- |
-- |
2008
Mazda Tribute Hybrid |
2WD |
$3,000 |
-- |
-- |
-- |
4WD |
$2,200 |
-- |
-- |
-- |
|
|
General
Motors |
Jan.
1, 2006 |
TBD |
TBD |
TBD |
2008 Chevrolet Malibu Hybrid |
$1,300 |
-- |
-- |
-- |
2006-07
Chevrolet Silverado Hybrid |
2WD |
$250 |
-- |
-- |
-- |
4WD |
$650 |
-- |
-- |
-- |
2008 Chevrolet Tahoe Hybrid (2WD & 4WD)
|
$2,200 |
-- |
-- |
-- |
2006-07
GMC Sierra Hybrid |
2WD |
$250 |
-- |
-- |
-- |
4WD |
$650 |
-- |
-- |
-- |
2008 GMC Yukon 1500 Hybrid
(2WD & 4WD) |
$2,200 |
-- |
-- |
-- |
2007-08
Saturn Aura Green Line |
$1,300 |
-- |
-- |
-- |
2007
Saturn Vue Green Line |
$650 |
-- |
-- |
-- |
2008
Saturn Vue Green Line |
$1,550 |
-- |
-- |
-- |
GM’s 2008 Chevrolet and Saturn Certified As Qualified Hybrid Vehicles (Sep. 6, 2007)
2007
GM Hybrids Still Qualify for Tax Credit
(May 2, 2007) |
|
Honda |
Jan.
1, 2006 – Dec. 31, 2007 |
Jan. 1 – Jun. 30, 2008 |
July 1 – Dec. 31, 2008 |
Jan. 1, 2009 |
2005-06
Insight CVT |
$1,450 |
$725 |
$362.50 |
$0 |
2005
Accord Hybrid AT & Navi AT |
$650 |
$325 |
$162.50 |
$0 |
2006
Accord Hybrid AT & Navi AT (w/o updated
control calibration) |
$650 |
$325 |
$162.50 |
$0 |
2006-07
Accord Hybrid AT & Navi AT (w/
updated control calibration) |
$1,300 |
$650 |
$325 |
$0 |
2005
Civic Hybrid (SULEV) MT & CVT |
$1,700 |
$850 |
$425 |
$0 |
2006-08
Civic Hybrid CVT |
$2,100 |
$1,050 |
$525 |
$0 |
AT = automatic transmission; CVT = continuously
variable transmission; MT = manual transmission;
SULEV = Super Low Emission Vehicle emissions
rating.
Honda Hybrid Begins Phase-Out on January 1 (Nov. 19, 2007)
Additional
Honda Vehicles Certified for Hybrid Tax Credits
(Nov. 22, 2006)
Seven
Honda Vehicles Certified for New Energy Tax
Credit (June 1, 2006) |
|
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Toyota |
Jan.
1 – Sep. 30, 2006 |
Oct.
1, 2006 – Mar. 31, 2007 |
Apr.
1 – Sep. 30, 2007 |
Oct. 1, 2007 |
2005-08
Prius |
$3,150 |
$1,575 |
$787.50 |
$0 |
2006-08
Highlander Hybrid (2WD & 4WD) |
$2,600 |
$1,300 |
$650 |
$0 |
2006-08
Lexus RX400h (2WD & 4WD) |
$2,200 |
$1,100 |
$550 |
$0 |
2007-08
Camry Hybrid |
$2,600 |
$1,300 |
$650 |
$0 |
2007
Lexus GS 450h |
$1,550 |
$775 |
$387.50 |
$0 |
2008 Lexus LS 600h |
-- |
-- |
$450 |
$0 |
2008 Hybrids Certified As Tax Credit For Toyota and Lexus Comes to an End (Nov. 8, 2007)
Phase-Out of Credit for Toyota and Lexus Hybrids Continues With Reporting of First Quarter Sales (May 2, 2007) |
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Source: Internal Revenue Service.
Updated January 17, 2008. |
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Additional Requirements |
Additional
Requirements view... |
Additional
Requirements hide... |
The following requirements must be met
to claim the credit:
- The original use of the vehicle commences with the
taxpayer.
- The vehicle is acquired for use or lease by the taxpayer,
and not for resale. (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.)
- The vehicle is used mostly in the United States.
- The vehicle must be placed in service by the taxpayer
after December 31, 2005 and must be purchased on or before
December 31, 2010.
- Click here
for more about the credit phase-out and ending date.
- Click here for
information on tax deductions for hybrids
placed into service before January 1, 2006.
IRS has yet to provide guidance on using credits to reduce
alternative minimum tax liability and rules relating to recapture
of credit (e.g., if the vehicle is re-sold). |
Phase Out & Termination |
Phase Out
& Termination view... |
Phase
Out & Termination hide... |
The credit begins to phase out for vehicles
once the manufacturer sells a total of 60,000 eligible hybrid
and lean-burn vehicles starting from January 1, 2006.
IRS will announce when a manufacturer exceeds this sales
figure.
In addition to the phase out rules, any vehicle purchased
after December 31, 2010 will not be eligible for the credit. |
Claiming the Credit |
Claiming the Credit
view... |
Claiming
the Credit hide... |
Fill out Form
8910, Alternative Motor Vehicle Credit.
For hybrids acquired for personal use, report the credit
from Form
8910 on the appropriate line of your Form
1040, U.S. Individual Income Tax Return. |
Hybrids Purchased Before 2006 |
Hybrids Purchased Before
2006 view...
|
Hybrids Purchased Before
2006 hide... |
Hybrids purchased before 2006 are not eligible for the
new tax credit, but it may be eligible for a hybrid
vehicle tax deduction of up to $2,000. |
Other Tax Incentives |
Other Tax Incentives
view... |
Other Tax Incentives
hide... |
Some state and local governments also provide incentives
for hybrids. Check with your state or local government or
view the U.S. Department of Energy's list of State
& Federal Incentives & Laws.
Hybrids are not eligibe for electric vehicle tax credits. |
Additional Information |
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DISCLAIMER
The information on this page should not be viewed as
an official or legally binding document. Other requirements
or exceptions may apply. For more detailed information,
please consult an IRS tax representative and/or official
IRS publications. |
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