Full Hybrid Vehicle Deduction Still Available for Toyota, Lexus, Ford, and Mercury

Posted on 09. Jun, 2006 by in Taxes

hybrid.jpgThe IRS announced yesterday that purchasers of Toyota, Lexus, Ford, and Mercury qualified vehicles may continue to claim the Alternative Motor Vehicle Credit. The IRS just concluded its quarterly review of the number of hybrid vehicles sold – a determining factor in calculating the credit you may take.

If you remember, you 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.

Since Toyota, Lexus, Ford and Mercury have not yet sold their 60,000th vehicle, you can still claim the full credit amount! In fact, for the quarter ending March 31, 2006, Toyota (which also owns Lexus) sold 41,779 qualifying vehicles and Ford (which also owns Mercury) sold only 6,192 qualifying vehicles to retail dealers.

The full credit for the qualified vehicles of Toyota, Lexus, Ford, and Mercury are:

  • Toyota Prius, 2005 and 2006 — $3,150
  • Toyota Highlander Hybrid, 2006 — $2,600
  • Lexus RX400h Hybrid, 2006 — $2,200
  • Ford Escape 2WD Hybrid, 2006 — $2,600
  • Ford Escape 4WD Hybrid, 2006 — $1,950
  • Mercury Mariner 4WD Hybrid, 2006 — $1,950

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