Home  Top Stories  Sports  Entertainment  Health News  Business  Personal Finance 
Real Estate  Business Finance  Insurance  Consulting 
Tax News  Forum



Featured Articles



Click Here For The Wall Street Journal


Home and Leisure Article


Amount of Tax Credits For Hybrid Cars Announced - Toyota and Ford Hybrids Eligible for Up To $3150 - Limited Time and Number Available

April 10th 2006

Amount of Tax Credits For Hybrid Cars Announced - Toyota and Ford Hybrids Eligible for Up To $3150 - Limited Time and Number Available

Mercury Mariner Hybrid

There are many reasons to buy a hybrid car, including saving money and the environment.  Last year the Federal Government offered a tax deduction which made buying a hybrid appealing.  This year, the Feds have gone a step further by offering a tax credit.  The tax credit is deducted directly from the taxes you owe, not just your total income like a deduction.  These credits will likely save the hybrid buyer much more than a deduction would.

Earlier this year most hybrid buyers knew they would get a tax credit, but the exact number was not known.  On April 7th the Internal Revenue Service (IRS) has come up with some figures for Toyota / Lexus and Ford / Mercury hybrid vehicles.  Remember, not all hybrids may qualify for the tax credit, but according to the IRS, these models will.


Here is the lineup for Ford Vehicles:

2006 Ford Escape Hybrid Front WD- $2,600

2006 Ford Escape Hybrid 4 WD - $1,950

2006 Mercury Mariner Hybrid 4 WD- $1,950


Here is the lineup for Toyota and Lexus Vehicles:

2005 Toyota Prius - $3150

2006 Toyota Prius - $3150


2006 Toyota Highlander 4WD Hybrid - $2600

2006 Toyota Highlander 2WD Hybrid - $2600

2006 Lexus RX400h 2WD - $2200

2006 Lexus RX400h 4WD - $2200

These tax credits are made available via the Energy Policy Act of 2005.  They apply for vehicles purchased after January 1st, 2006. If you are interested in purchasing a hybrid, the IRS warns that you should “buy early”.  There are a limited number of credits available.  According to the IRS “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 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.”

Comment on this Article at our Forum

Submit your own Article

Automotive Special Topic 

  RSS Automotive Feed

  RSS Feed to our Science Tech News

  RSS Feed to all of our News

Add to Google Add to My AOL
Add to My Yahoo! Subscribe with Pluck RSS reader
Subscribe in NewsGator Online
Add this feed to Your C-Net
Subscribe in Bloglines Subscribe in Rojo

By Dan Wilson
Best Syndication

Automotive Books

Keywords and misspellings: hibrid car electric pryus acord

Web BestSyndication.com

About   Contact   Site Map

Copyright 2005 Best Syndication                   Last Updated Saturday, July 10, 2010 09:51 PM