IRS announces hybrid credit updates | AccountingWEB

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.

    Wait, there's more!
    There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
    Premium content is currently locked

    Editor's Choice

    WHAT KIND OF FIRM ARE YOU?
    As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
    This is strictly for internal use and data will not be sold
    or shared with any third parties.