IRS Update April 7, 2007
IRS Publication 553 says the following:
“You may be able to claim this credit if you place an alternative motor-vehicle in service for business or pleasure use after 2005.
_______________
October 20, 2006: New Bulletin--$2600 Credit Available For A Certain Ford Model--See Below_______________
An alternative motor vehicle must meet certain requirements and be a new:
Advanced lean burning technology vehicle,
Qualified alternative fuel vehicle,Qualified fuel cell vehicle, orQualified hybrid vehicle.”Additional Ford Hybrid Vehicles Certified for Tax Credit
On Oct 20, 2006 The IRS issued
IR-2006-165, Which Says:
WASHINGTON — The Internal Revenue Service has acknowledged the certification by Ford Motor Company that two of its 2005 vehicles meet the requirements of the Alternative Motor Vehicle Credit as qualified hybrid motor vehicles.
The tax credit for hybrid vehicles applies to vehicles purchased on or after January 1, 2006.
The hybrid vehicle certifications recently acknowledged by the IRS and their credit amounts are:
Ford Escape 2 WD Hybrid, Model Year 2005 — $2,600
Ford Escape 4 WD Hybrid, Model Year 2005 — $1,950
The 2006 Model Year Ford Escape Hybrid front wheel drive and 4 WD models previously were certified in the amounts of $2,600 and $1,950 respectively.
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 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.
The total number of qualifying Ford hybrid vehicles reported sold as of June 30, 2006, was 11,885. Therefore, purchasers of Ford’s qualified vehicles may continue to rely on the previously issued IRS certifications under Notice 2006-9 concerning the vehicle’s qualification for the credit.
On Wednesday August 16th, 2006,IRS issued IR-2006-122
Which said:
Purchasers of GM Hybrids Still Qualify for Tax Credit
WASHINGTON — The Internal Revenue Service announced that purchasers of General Motors Corp. qualified vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold.
GMC sold 1,388 qualifying vehicles to retail dealers in the quarter ending June 30, 2006. The credit amount and make and model of qualified vehicles sold are:
GMC Silverado Hybrid 2WD, Model Years 2006 and 2007 — $250
GMC Silverado Hybrid 4WD, Model Years 2006 and 2007 — $650 GMC Sierra Hybrid 2WD, Model Years 2006 and 2007 — $250 GMC Sierra Hybrid 4WD, Model Years 2006 and 2007 — $650 Saturn Vue GreenLine, Model Year 2007 — $650Purchasers of GMC’s qualified vehicles may continue to rely on the certifications concerning the vehicles’ qualification for the credit.
Consumers seeking the credit may want to buy early because the full credit is only available for a limited time.
Taxpayers may claim the full amount of the 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.
Motor Vehicle To Internal Revenue Service Materials
