An Internal Revenue Service review of Toyota Motor Sales USA, Inc.'s, 2007 first quarter sales will allow purchasers of Toyota and Lexus vehicles to continue to claim the Alternative Motor Vehicle Credit.

Based on the number of vehicles sold, the phase-out period for Toyota vehicles began on Oct. 1, 2006.

Toyota sold 61,369 qualifying vehicles to retail dealers in the quarter ending March 31, 2007. This brings the cumulative sales of qualified Toyota hybrid vehicles sold from the period of Jan. 1, 2006, through March 31, 2007, to 273,442.

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 qualified 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 sale of Toyota’s 60,000th qualified vehicle occurred in the quarter ending June 30, 2006.

The IRS also announced that purchasers of qualified General Motors Corp. hybrid vehicles may continue to claim the full credit. GMC sold 2,927 qualifying vehicles to retail dealers in the quarter ending March 31, 2007. This brings the cumulative number of qualified GM hybrid vehicles sold to 8,485.