Apr 26 2009
The alternative motor vehicle tax credit will begin to phase out once a manufacturer sells more than 60,000 qualifying vehicles.
"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." -- From the IRSBased on sales data, the IRS has set phaseout periods for the following vehicles.
Phaseout for Ford and Mercury hybrid vehicles
Begins: April 1, 2009.100% credit: for eligible vehicles purchased before April 1, 2009.
50% credit: for eligible vehicles purchased between April 1, 2009, and September 30, 2009.
25% credit: for eligible vehicles purchased between October 1, 2009, and March 31, 2010.
0% credit: for vehicles purchased April 1, 2010, or later.
Here are the 50% credit amounts for Ford and Mercury vehicles purchased from April 1, 2009, and September 30, 2009:
- 2005, 2006, 2007 Ford Escape 2WD: $1,300
- 2008, 2009 Ford Escape 2WD: $1,500
- 2005, 2006, 2007, 2009 Ford Escape 4WD: $975
- 2008 Ford Escape 4WD: $1,100
- 2010 Ford Fusion: $1,700
- 2008, 2009 Mercury Mariner 2WD: $1,500
- 2006, 2007, 2009 Mercury Mariner 4WD: $975
- 2008 Mercury Mariner 4WD: $1,100
- 2010 Mercury Milan: $1,700
Here are the 25% credit amounts for Ford and Mercury vehicles purchased from October 1, 2009, and March 31, 2010:
- 2005, 2006, 2007 Ford Escape 2WD: $650
- 2008, 2009 Ford Escape 2WD: $750
- 2005, 2006, 2007, 2009 Ford Escape 4WD: $487.50
- 2008 Ford Escape 4WD: $550
- 2010 Ford Fusion: $850
- 2008, 2009 Mercury Mariner 2WD: $750
- 2006, 2007, 2009 Mercury Mariner 4WD: $487.50
- 2008 Mercury Mariner 4WD: $550
- 2010 Mercury Milan: $850
Phaseout for Honda hybrid vehicles
Begins: January 1, 2008.100% credit: for eligible vehicles purchased before January 1, 2008.
50% credit: for eligible vehicles purchased between January 1, 2008, and June 30, 2008.
25% credit: for eligible vehicles purchased between July 1, 2008, and December 31, 2008.
0% credit: for vehicles purchased January 1, 2009, or later.
Phased-out hybrid tax credit dollar amounts for Honda hybrids
Here are the 50% credit amounts for January 1, 2008, through June 30, 2008:- 2007 Honda Accord Hybrid AT: $650
- 2007 Honda Accord Hybrid Navi AT: $650
- 2007 Honda Civic Hybrid CVT: $1,050
- 2008 Honda Civic Hybrid CVT: $1,050
- 2007 Honda Accord Hybrid AT: $325
- 2007 Honda Accord Hybrid Navi AT: $325
- 2007 Honda Civic Hybrid CVT: $525
- 2008 Honda Civic Hybrid CVT: $525
Phaseout for Toyota and Lexus hybrid vehicles
Begins: October 1, 2006.100% credit: for eligible vehicles purchased before October 1, 2006.
50% credit: for eligible vehicles purchased between October 1, 2006 and March 31, 2007.
25% credit: for eligible vehicles purchased between April 1, 2007 and September 30, 2007.
0% credit: for vehicles purchased October 1, 2007, or later.
Phased-out hybrid tax credit dollar amounts for Toyota and Lexus hybrid vehicles
Here are the 50% credit amounts for October 1, 2006 through March 31, 2007:- 2005 Prius: $1,575
- 2006 Highlander 4WD Hybrid: $1,300
- 2006 Highlander 2WD Hybrid: $1,300
- 2006 Lexus RX400h 2WD: $1,100
- 2006 Lexus RX400h 4WD: $1,100
- 2006 Prius: $1,575
- 2007 Camry Hybrid: $1,300
- 2007 Lexus GS 450h: $775
- 2007 Lexus RX 400h: $1,100
- 2007 Toyota Highlander Hybrid: $1,300
- 2007 Toyota Prius: $1,575
- 2005 Prius: $787.50
- 2006 Highlander 4WD Hybrid: $650
- 2006 Highlander 2WD Hybrid: $650
- 2006 Lexus RX400h 2WD: $550
- 2006 Lexus RX400h 4WD: $550
- 2006 Prius: $787.50
- 2007 Camry Hybrid: $650
- 2007 Lexus GS 450h: $387.50
- 2007 Lexus RX 400h: $550
- 2007 Toyota Highlander Hybrid: $650
- 2007 Toyota Prius: $787.50
- 2008 Lexus LS 600h L Hybrid: $450
- 2008 Lexus RX 400h 2WD and 4WD: $550
- 2008 Toyota Camry Hybrid: $650
- 2008 Toyota Highlander Hybrid 4WD: $650
- 2008 Toyota Prius: $787.50
- Tax Credit for Ford Hybrids Begins Phase-Out (IR-2009-42)
- Honda Hybrid Begins Phase-Out on January 1, 2008 (IR-2007-191)
- Toyota Hybrid Begins Phaseout on October 1, 2006 (IR-2006-145)
Table of Contents
Alternative Motor Vehicle Tax Credit: Basic Info and Qualifications (page 1)
Alternative Motor Vehicle Tax Credit: Limitations, No Carryover, Tax Strategies (page 2)
List of All Vehicles Eligible for the Alternative Motor Vehicle Tax Credit (page 3)
Phaseout Time Periods and Dollar Amounts (page 4)
