2008 hybrid Tax Credits Announced

[wvujeb]

IR-2007-22, Jan. 31, 2007

 

 

WASHINGTON — The Internal Revenue Service announced that purchasers of qualified Ford Motor Company vehicles may continue to claim the Alternative Motor Vehicle Credit. Also, four qualifying 2008 Ford hybrid vehicles were announced.

The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. Ford sold 5,645 qualifying vehicles to retail dealers during the quarter ending Dec. 31, 2006. This brings the total number of Ford qualifying hybrids reported to date to 22,156.

 

Purchasers of Ford’s qualified vehicles may continue to rely on the previously issued IRS certifications concerning the vehicles’ qualification for the credit. However, those seeking the credit should remember that the full credit may be available only for a limited time.

 

The credit amount and make and model of previously certified vehicles sold are:

 

Ford Escape 2WD, Model Years 2005, 2006 and 2007 — $2,600

Ford Escape 4WD, Model Years 2005, 2006 and 2007 — $1,950

Mercury Mariner 4WD, Model Years 2006 and 2007 — $1,950

IRS also certified additional 2008 Ford vehicles for the following credit amounts:

 

Ford Escape 2WD Hybrid Model Year 2008 — $3,000

Mercury Mariner 2WD Hybrid Model Year 2008 — $3,000

Ford Escape 4WD Hybrid Model Year 2008 — $2,200

Mercury Mariner 4WD Hybrid Model year 2008 — $2,200

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.

 

More information on hybrid vehicles and other alternative motor vehicles can be found on this Web site.

 

http://www.irs.gov/newsroom/article/0,,id=167435,00.html

[NickF1011]

Tax credits for hybrids is ridiculous.

 

If it's about fuel economy, why aren't there tax credits for buying any of VW's turbodiesels that get SIGNIFICANTLY better milage than any hybrids?

 

If it's a matter of emissions, where's the tax credit for the Focus PZEV? It's cleaner than the Prius.

 

Retarded government.

[wvujeb]

It's about both. For a hybrid or alternative fuel vehicle to be eligible for a tax credit, it must meet certain emission's standards and fuel economy improvements.

[NickF1011]

It's about both. For a hybrid or alternative fuel vehicle to be eligible for a tax credit, it must meet certain emission's standards and fuel economy improvements.

 

The Focus PZEV gets better fuel economy than a Highlander or Escape hybrid. Where's the tax credit?

 

Again I iterate that it's ridiculous.

[wvujeb]

The Focus PZEV gets better fuel economy than a Highlander or Escape hybrid. Where's the tax credit?

 

Again I iterate that it's ridiculous.

 

You're comparing apples to oranges. If the Focus was a small SUV, then I would agree, but its not. People who want/need an SUV can buy a hybrid SUV to help the environment and lower the dependency on oil. The tax credit helps to encourage people to do that. If I want/need an SUV, a Focus isn't going to do me much good.

[StevenCaylor]

The Focus PZEV gets better fuel economy than a Highlander or Escape hybrid. Where's the tax credit?

 

Again I iterate that it's ridiculous.

 

The PZEV Focus averages out to 32 MPG. The Escape Hybrid averages 33.5

[wvujeb]

The PZEV Focus averages out to 32 MPG. The Escape Hybrid averages 33.5

 

The '08 models have been reported to have a 3 mpg increase. The actual numbers have not been announced, but since the tax credits went up from what they were last year, I would assume this to be true.

Edited February 3, 2007 by wvujeb

[Roush6]

The '08 models have been reported to have a 3 mpg increase. The actual numbers have not been announced, but since the tax credits went up from what they were last year, I would assume this to be true.

 

If this is indeed true, then it is truly impressive IMO. Considering that the 2008 EPA ratings for hybrids were expected to decrease 20-30%, this would be a WIN for Ford. I'm keeping my fingers crossed.

[wvujeb]

If this is indeed true, then it is truly impressive IMO. Considering that the 2008 EPA ratings for hybrids were expected to decrease 20-30%, this would be a WIN for Ford. I'm keeping my fingers crossed.

 

I would guess that the 2008 EPA ratings are going to go down, but I think the tax credit is going to based off of the pre-2008 EPA tests. The mileage will go up 3 mpg from the current numbers, but I'm not sure what the 2008 numbers will be.

[Roush6]

I would guess that the 2008 EPA ratings are going to go down, but I think the tax credit is going to based off of the pre-2008 EPA tests. The mileage will go up 3 mpg from the current numbers, but I'm not sure what the 2008 numbers will be.

 

You're right about the decrease in the EPA ratings. According to this, the EPA ratings should be 29 city/27 hwy for the 2008 Escape AWD Hybrid.

[NLPRacing]

The Focus PZEV gets better fuel economy than a Highlander or Escape hybrid. Where's the tax credit?

 

Again I iterate that it's ridiculous.

 

 

You're comparing apples to oranges. If the Focus was a small SUV, then I would agree, but its not. People who want/need an SUV can buy a hybrid SUV to help the environment and lower the dependency on oil. The tax credit helps to encourage people to do that. If I want/need an SUV, a Focus isn't going to do me much good.

 

I think Nicks point is that there are many vehicles that get great gas mileage and super low emissions that people do not get any incentive to purchase. What does the Escape HEV do that the Focus PZEV can't? The Focus PZEZ seats 5 and the Escape Hybrid seats 5. If there is going to be a goofy tax credit, then it should be extended to PZEV vehicles as well. Hell, even the V6 Explorer puts out fewer emissions than the V6 Accord Hybrid..

[NickF1011]

I think Nicks point is that there are many vehicles that get great gas mileage and super low emissions that people do not get any incentive to purchase. What does the Escape HEV do that the Focus PZEV can't? The Focus PZEZ seats 5 and the Escape Hybrid seats 5. If there is going to be a goofy tax credit, then it should be extended to PZEV vehicles as well. Hell, even the V6 Explorer puts out fewer emissions than the V6 Accord Hybrid..

 

Exactly. Of course, if it were up to me, there would be no tax credits on anything ever. No deductions for anything. Straight tax on your income and that's it. No crazy 40-page tax returns just to save 18 cents on the rubber bands you bought for your home office.

 

But, our government is way too illogical to ever simplify the tax code, so to that effect, they may as well broaden the tax credits to include far more fuel efficient vehicles, hybrid or not.