Federal Tax Credits for Advanced Vehicles

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Type: Personal Tax Credit

Provider: Internal Revenue Service

What Improvements Qualify?

Hybrid Vehicles,Alternative Fuel Vehicles,HOV/Free Parking,Televisions/VCRs

How Much Can You Save?

$250 - $3,400, depending on the vehicle's level of fuel economy improvement

When Can You Apply?

From January 01, 2006 Through December 31, 2010

Website

http://www.irs.gov/newsroom/article/0,,id=157557,00.html...

What You Need to Know

Personal tax credit for purchasing a new energy-efficient car that will be put into service after January 1, 2006 and purchased on or before December 31, 2010. The full tax credits will be available until a manufacturer reaches 60,000 vehicles sold (60,000 for Toyota, 60,000 for Ford, etc.). Once a manufacturer has sold 60,000 vehicles, a one-year "phase out" will begin; 50% of the credit will be available for that manufacturer's hybrids in the first two quarters of the phaseout period and 25% in the final two quarters. This means that the tax credits for popular models will be unavailable long before the December 31, 2010 deadline. For example, Toyota officially met its 60,000 cap as of June 2006. For updates on credit availability, visit: http://www.irs.gov/newsroom/article/0,,id=161076,00.html

How to Apply

After confirming that the model is eligible and that the tax credit is still available for the manufacturer, file Form 8910 with your business or individual tax return. To find contact information for your local IRS office, visit: http://www.irs.gov/localcontacts/index.html

Who to Contact

The Application Forms

Form 8910, Alternative Motor Vehicle Credit: http://www.irs.gov/pub/irs-pdf/f8910.pdf
http://www.irs.gov/pub/irs-pdf/f8910.pdf...
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