IRS announces hybrid credit updates
The Internal Revenue Service announced that purchasers of qualified Ford Motor Company 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. Ford sold 5,149 qualifying vehicles to retail dealers during the quarter ending March 31, 2007. This brings the total number of Ford qualifying hybrids reported to date to 27, 275.
The credit amount and make and model of the certified vehicles sold are:
Ford Escape 2WD Hybrid Model Year 2008 — $3,000
Ford Escape 2WD, Model Years 2005, 2006 and 2007 — $2,600
Ford Escape 4WD Hybrid Model Year 2008 — $2,200
Ford Escape 4WD, Model Years 2005, 2006 and 2007 — $1,950
Mercury Mariner 4WD Hybrid Model year 2008 — $2,200
Mercury Mariner 4WD, Model Years 2006 and 2007 — $1,950
Mercury Mariner 2WD Hybrid Model Year 2008 — $3,000
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.