Hybrid Car Credit
You may be eligible for a hybrid vehicle tax credit if you bought a hybrid vehicle
this year. For the most fuel-efficient models, the credit can be worth up to $3,000.
The exact amount of the credit is dependent upon the make and model of the vehicle.
The Alternative Motor Vehicle Credit (the name given to the tax credit for hybrid
vehicles) is applicable to vehicles bought or put on the road after January 1, 2006.
To qualify as a hybrid, the vehicle must have drive trains powered by both an internal
combustion engine and a rechargeable battery. Most hybrid makes and models
(over 40 models overall) do qualify for this credit. To determine if your vehicle
qualifies for the credit, and the amount of the credit, check the lists of vehicles
on the IRS website:
Taxpayers may claim the credit on their 2009 tax returns only if they drove a qualified
hybrid vehicle on the road in 2009. The credit is only available to the original
purchaser of the vehicle and cannot be claimed by an individual who leased or bought
the car used during 2009.
The credit has been phased out for some hybrid models but is available for new hybrid
vehicles that went to market in 2009. After 60,000 hybrid vehicles are sold by a
particular manufacturer, the tax credit is reduced and gradually eliminated.
To claim the full credit, one must file by the end of the third month after the
quarter in which the manufacturer sells its 60,000th hybrid vehicle.
Learn more about
the hybrid car credit