Hybrid tax credit

The U.S. IRS has adopted large tax credits for purchase of new hybrid vehicles. The credits have a current maximum of $3,150. Note these are credits-- dollar for dollar tax savings-- not merely deductions. The law that created the credits limits its availability to 60,000 vehicles from each automaker; meaning credits for popular models will be gone before the tax break's scheduled Dec. 31, 2010, expiration date. Full credits for the automaker's remain available for the next calendar quarter following the quarter in which its 60,000th vehicle is sold; for the subsequent two quarters, the incentive is 50 percent of the full amount; for the two quarters after that, it is 25 percent, after that it is phased out (0 percent).

The following chart refers to model year 2008 vehicles

Make	Model	EPA Estimated Mileage City/Highway/Avg	Credit Amount
Chevrolet	Malibu Hybrid	24/32/40	$1,300
Chevrolet	Tahoe Hybrid 2WD and 4WD	20/20/20	$2,200
Ford	Escape Hybrid 2WD	34/30/32	$3,000
Ford	Escape Hybrid 4WD	34/30/32	$2,200
GMC	Yukon Hybrid	21/22/21.5	$2,200
Honda	Civic Hybrid (CVT)	40/45/42	$525*
Mazda	Tribute 2WD	34/30/32	$3,000
Mazda	Tribute 4WD	29/27/28	$2,200
Mercury	Mariner Hybrid 2WD	34/30/32	$3,000
Mercury	Mariner Hybrid 4WD	34/30/32	$2,200
Nissan	Altima Hybrid	35/33/34	$2,350
Saturn	Aura Hybrid	24/32/28	$1,300
Saturn	Vue Hybrid	25/32/28.5	$1,550
Toyota	Camry Hybrid	35/33/34	$0
Toyota	Prius	48/45/46	$0
Toyota	Highlander Hybrid	18/24/21	$0
Lexus	RX 400h 2WD and 4WD	26/34/25	$0
Lexus	LS 600h L Hybrid	20/22/21	$0

• Expires on 12/31/08

Hybrid Tax Credits from lowest to highest:

• 2006-07 Chevrolet Silverado Hybrid 2wd, $250
• 2006-07 GMC Sierra Hybrid 2wd, $250
• 2006-07 Chevrolet Silverado Hybrid 4WD, $650
• 2006-07 GMC Sierra Hybrid 4WD, $650
• 2005 Honda Accord Hybrid, $650
• 2006 Honda Accord Hybrid (w/o updated control calibration), $650
• 2007 Saturn VUE Green Line, $650
• 2007 Saturn Aura Green Line, $1300
• 2006-07 Honda Accord Hybrid (w/ updated control calibration), $1,300
• 2005-06 Honda Insight CVT, $1,450
• 2007 Lexus GS 450h, $1,550 (purchased on/before 09/30/2006) / $775 (purchased 10/01/06-03/31/07) / $387.50 (purchased 04/01/07-09/30/07) / $0 (purchased on or after 10/01/07)
• 2005 Honda Civic Hybrid (SULEV) MT & CVT, $1,700
• 2005-07 Ford Escape Hybrid 4WD, $1,950
• 2006-07 Mercury Mariner Hybrid 4WD, $1,950
• 2006-07 Honda Civic Hybrid CVT*, $2,100
• 2006-07 Lexus RX 400h 2WD or 4WD, $2,200 (purchased on/before 09/30/2006) / $1100 (purchased 10/01/06-03/31/07) / $550(purchased 04/01/07-09/30/07) / $0 (purchased on or after 10/01/07)
• 2008 Ford Escape Hybrid 4WD, $2,200
• 2008 Mercury Mariner Hybrid 4WD, $2,200
• 2007 Nissan Altima Hybrid, $2350
• 2007 Toyota Camry Hybrid, $2,600 (purchased on/before 09/30/2006) / $1300 (purchased 10/01/06-03/31/07) / $650(purchased 04/01/07-09/30/07) / $0 (purchased on or after 10/01/07)
• 2006-07 Toyota Highlander Hybrid 2WD or 4WD , $2,600 (purchased on/before 09/30/2006) / $1300 (purchased 10/01/06-03/31/07) / $650(purchased 04/01/07-09/30/07) / $0 (purchased on or after 10/01/07)
• 2005-07 Ford Escape Hybrid 2WD, $2,600
• 2008 Ford Escape Hybrid 2WD, $3,000
• 2008 Mercury Mariner Hybrid 2WD, $3,000
• 2005-07 Toyota Prius $3,150 (purchased on/before 09/30/2006) / $1575 (purchased 10/01/06-03/31/07) / $787.50 (purchased 04/01/07-09/30/07) / $0 (purchased on or after 10/01/07)