Hybrid Credit Update

Hybrid cars from Honda and Nissan have been certified for the hybrid tax credit by the Internal Revenue Service.

The 2008 Honda Civic GX, which runs on compressed natural gas, is certified for a $4,000 tax credit. The 2008 Nissan Altima hybrid is certified for a $2,350 tax credit.

Additionally, the IRS announced that the hybrid tax credits for Honda vehicles will begin to phase out beginning on January 1, 2008. If you want full credit for a Honda vehicle, taxpayers will need to take delivery by December 31, 2007. Honda hybrids purchased from January to June 2008 will get 50% of the tax credit, and vehicles purchased from July to December 2008 will get 25% of the credit. Honda hybrids purchased in 2009 will not be eligible for the tax credit, unless Congress decides to re-write this tax law.

More information about the hybrid credit:

• Hybrid Tax Credit
• Limitations and Strategies
• List of Eligible Hybrid Vehicles
• Phaseout for Honda, Lexus, and Toyota Models
• Honda Hybrid Begins Phase-Out on January 1 (IR-2007-191 from the IRS)
• Honda Compressed Natural Gas Vehicle is Certified for the Qualified Alternative Fuel Motor Vehicle Tax Credit (IR-2007-181 from the IRS)
• 2008 Nissan Altima Certified as Qualified Hybrid Vehicle (IR-2007–188 from the IRS)