Hybrid Tax Credits

The 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).

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)