Last update - Feb. 16, 2006
The Energy Policy Act of 2005 provides a credit for taxpayers who purchase
certain energy efficient vehicles, including Qualified Hybrid vehicles. [Notice
2006-9] provides procedures for manufacturers to certify to the Internal Revenue
Service that certain passenger autos and light trucks qualify for the credit
and the amount of the credit.² The credit amount for qualified hybrid vehicles
other than passenger autos or light trucks is computed using a different formula.
Guidance regarding the credit for new qualified hybrid motor vehicles that
are not passenger automobiles or light trucks will be provided in a separate
notice. Generally, for a passenger car or light truck that is a qualified hybrid
vehicle, a taxpayer may rely on the manufacturer's certification that a specific
make, model and model year vehicle qualifies for the credit and the amount
of the credit for which it qualifies.³
Even though a manufacturer has certified a vehicle, a taxpayer must meet the following requirements to qualify for the credit:
-
The vehicle must be placed in service after 12-31-05 and purchased on or before 12-31-10.
-
The original use of the vehicle must begin with the taxpayer claiming the credit.
a. The credit may only be claimed by the original owner of a new, qualifying, hybrid vehicle and does not apply to a used hybrid vehicle.
-
The vehicle must be acquired for use or lease by the taxpayer claiming the credit.
a. The credit is only available to the original purchaser of a qualifying hybrid vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.
b. For qualifying vehicles used by a tax-exempt entity, the person who sold the qualifying vehicle to the person or entity using the vehicle is eligible to claim the credit, but only if the seller clearly discloses in a document to the tax-exempt entity the amount of credit.
-
The vehicle must be used predominantly within the United States.
Vehicles Eligible for Income Tax Credit
As of Dec. 14, 2006, the Internal Revenue Service had acknowledged the manufacturers' certifications of the following qualified hybrid vehicles (arranged by model year) and credit amounts (additional vehicles may subsequently be acknowledged. Further acknowledgements will be included in a revised summary page):
* Effective 10-1-06, Toyota and Lexus vehicles qualify for reduced credit amounts.
2008
|
Make |
Model |
Credit Amount |
|
Ford |
Escape Hybrid 2WD |
$3,000 |
|
Ford |
Escape Hybrid 4WD |
$2,220 |
|
Mercury |
Mariner Hybrid 2 WD |
$3,000 |
|
Mercury |
Mariner Hybrid 4WD |
$2,200 |
2007
|
Make |
Model |
Credit Amount |
|
Chevrolet |
Silverado 2WD Hybrid Pickup Truck |
$ 250 |
|
Chevrolet |
Silverado 4WD Hybrid Pickup Truck |
$ 650 |
|
Ford |
Escape Hybrid 2WD |
$2,600 |
|
Ford |
Escape Hybrid 4WD |
$1,950 |
|
GMC |
Sierra 2WD Hybrid Pickup Truck |
$ 250 |
|
GMC |
Sierra 4WD Hybrid Pickup Truck |
$ 650 |
|
Honda |
Accord AT |
$1,300 |
|
Honda |
Accord Navi |
$1,300 |
|
Honda |
Civic CVT |
$2,100 |
|
Lexus* |
GS450h |
Purchase Date |
|
|
1-1-06 / 9-30-06 |
$1,550 |
|
10-1-06 / 3-31-07 |
$ 775 |
|
4-1-07 / 9-30-07 |
$ 387.50 |
|
10-1-07 |
$ 0 |
|
Lexus * |
RX 400h 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 |
|
10-1-07 |
$ 0 |
|
Lexus* |
RX 400h 2WD |
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 |
|
10-1-07 |
$ 0 |
|
Mercury |
Mariner Hybrid 4WD |
$1,950 |
|
Saturn |
Vue Green Line |
$ 650 |
|
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 |
|
10-1-07 |
$ 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 |
|
10-1-07 |
$ 0 |
|
Toyota* |
Highlander Hybrid 2WD |
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 |
|
10-1-07 |
$ 0 |
|
Toyota* |
Highlander Hybrid 4WD |
Purchase Date |
|
2006
|
Make |
Model |
Credit Amount |
|
Chevrolet |
Silverado 2WD Hybrid Pickup Truck |
$ 250 |
|
Chevrolet |
Silverado 4WD Hybrid Pickup Truck |
$ 650 |
|
Ford |
Escape Hybrid 2WD Front Wheel Drive |
$2,600 |
|
Ford |
Escape Hybrid 4WD |
$1,950 |
|
GMC |
Sierra 2WD Hybrid Pickup Truck |
$ 250 |
|
GMC |
Sierra 4WD Hybrid Pickup Truck |
$ 650 |
|
Honda |
Accord Hybrid AT w/updated calibration* |
$1,300
$ 650 - Vehicles without updated calibration |
|
Honda |
Accord Hybrid Navi AT w/updated calibration* |
$1,300
$ 650 - Vehicles without updated calibration |
|
Honda |
Civic Hybrid CVT |
$2,100 |
|
Honda |
Insight CVT |
$1,450 |
|
Lexus* |
RX400h 2WD |
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 |
|
10-1-07 |
$ 0 |
|
Lexus* |
RX400h 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 |
|
10-1-07 |
$ 0 |
|
Mercury |
Mariner 4WD Hybrid |
$1,950 |
|
Toyota* |
Highlander 2 WD 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 |
|
10-1-07 |
$ 0 |
|
Toyota* |
Highlander 4WD 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 |
|
10-1-07 |
$ 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 |
|
10-1-07 |
$ 0 |
2005
|
Make |
Model |
Credit Amount |
|
Ford |
Escape HEV 2WD |
$2,600 |
|
Ford |
Escape HEV 4WD |
$1,950 |
|
Honda |
Accord Hybrid AT |
$ 650 |
|
Honda |
Accord Hybrid Navi AT |
$ 650 |
|
Honda |
Civic Hybrid CVT |
$1,700 |
|
Honda |
Civic Hyrid MT |
$1,700 |
|
Honda |
Insight CVT |
$1,450 |
|
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 |
|
10-1-07 |
$ 0 |
Detailed information available from Irs.gov
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