Although hybrids are still a very small segment of the vehicles sold in the U.S., they are getting a lot more press and consumer attention. Gas mileage, usually low on the buyers check list, became a buying factor when gas prices soared last year, but as gas prices moderate, hybrids and diesels will need the tax credit to continue their sales climb. States also began to add tax credits and perks for hybrid owners.
The actual credit allowed varies from vehicle to vehicle. Furthermore, the credit is phased out once a manufacturer sells 60,000 hybrid vehicles. Lexus, Toyota, and Honda all hit this mark in previous years, so no 2009 purchase of their hybrids qualifies for a credit.
Ford and Mercury hit the 60,000 sales mark during the last quarter of 2008, which means the full credit for these vehicles is no longer available. However, 50% of the credit for Ford and Mercury vehicles will be allowed for purchases made from April 1, 2009, through September 30, 2009, and 25% of the credit will be available for purchases made from October 1, 2009, through March 31, 2010. So, if you’re interested in a Ford or Mercury hybrid, you will want to make the purchase before October 1, 2009, to get 50% of the credit rather than the 25%.
The full credit is still available on hybrids manufactured by Mazda, Mercedes-Benz, Nissan, and Volkswagen and on certain General Motors vehicles. To see a list of what vehicles are still being approved for this credit you can view them on the IRS website when you search for the American Recovery and Reinvestment Act of 2009.
To view more information about the vehicle credits, please visit http://www.abs1040.com. for more information. Need to know how this will affect the accounting in your business, visit our website at http://www.abswebaccounting.com.
http://www.TFLcar.com ) The 2014 Honda Accord Hybrid is amazing because according to the EPA it gets an amazing 50 MPG in the city. That’s astounding becau…