A Qualified Hybrid Vehicle tax credit is available for certain hybrid cars placed in service after Dec. 31, 2005, and purchased on or before Dec. 31, 2010, according to the IRS. Makes of qualified hybrid vehicles for 2007 include Chevrolet, Ford, GMC, Honda, Lexus, Mercury, Saturn and Toyota.Continue Reading
In the case of Toyota and Lexus, the amount of the credit may be reduced depending on the date of purchase as the credit is being phased out as of 2015, according to the IRS. Therefore, for qualified hybrid vehicles purchased between Oct. 1, 2006 and March 31, 2007, 50 percent of the credit is available, while vehicles purchased between April 1, 2007 and Sept. 30, 2007, 25 percent of the credit is available.
Additional requirements to qualify for the credit include that the original use of the vehicle must start with the taxpayer claiming the credit, the vehicle must have been acquired for use or lease by the same taxpayer, the vehicle must be new -- used hybrid vehicles do not qualify -- and the vehicle must be used mostly in the United States. Leasing companies may claim the credit in the case of a qualifying vehicle being leased to an individual, as the credit is only available for the original purchaser of a vehicle.Learn more about Taxes