Feb22

Hybrid Car, Vehicle Federal Tax Rebate Credit

by admin on February 22nd, 2012 at 8:35 pm
Posted In: Random Things

The recent Bailout Package signed into law just before the election extended the federal tax credit for hybrid motor vehicles that was originally passed in 2005. Under the original law, taxpayers who purchased certain energy efficient vehicles, received a tax credit offset to the cost of the vehicle itself.

The IRS established a procedure for manufacturers to determine whether a particular vehicle qualifies and the amount of the credit for each vehicle. The tax credit amount for qualified hybrid vehicles other than passenger autos or light trucks is computed using a different formula.

For passenger cars or light trucks that qualify as a hybrid vehicle, a taxpayer may generally rely on the manufacturer’s certification that a specific make, model and year of vehicle qualifies for the credit as well as the amount of the credit that may be taken.

Regardless of other qualifications, any taxpayer seeking the credit needs to meet the following requirements:

 

  • The vehicle must have been placed in service after December 31, 2005.

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  • The taxpayer must be the original user of the vehicle. However, the rebate may only be claimed by the original owner of a new, qualifying hybrid vehicle.

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  • The credit is only available to the original purchaser of a qualifying hybrid vehicle. If a qualifying vehicle is leased to a consumer, it is the leasing company that may claim the credit.

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  • For qualifying vehicles used by a tax-exempt entity, the taxpayer who sold the vehicle to the tax-exempt organization may take the credit.

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  • The vehicle must be used primarily inside the fifty, United States.

    •  Learn more about Hybrid Car Federal Tax Rebate Credit.

    If you have recently made a hybrid car purchase you may find the tools at TurboTax Online helpful in determining the federal tax rebate for your hybrid vehicle. TurboTax offers free tax calculators and software to help you maximize your tax return. Learn more about donating your vehicles to charity for a tax deduction.

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