Just thought I'd update for anyone interested, below is my back-and-forth email with Ford's "Customer Service" (a term I now use very loosely):

Maria,

I've found that the local dealerships know very little about the tax credits and such. Is there someone at the corporate level that I could direct my question to?

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Dear Patrick,

Thank you for contacting the Ford Motor Company Customer Relationship Center regarding the 2005 Ford Escape Hybrid tax credit.


For information regarding tax credit eligibility of Ford and Mercury Hybrid vehicles, please review the below IRS link:

www.irs.gov/newsroom/article/0,,id=156044,00.html


Another resource you maybe interested in is the Internal Revenue Service website:

www.irs.com

Enjoy your new vehicle.

We consider the satisfaction of our customers one of our most important objectives. If you have any other inquiries or concerns, please feel free to contact us and we will be happy to address them for you.


Sincerely,
Jill
Customer Relationship Center
Ford Motor Company

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Jill,

Thank you for the response. I've already looked at the links you sent me, neither of which provide an answer for my question. I know that the '06 models have been certified for the credit. What I'd like to know is whether the '05s will also be certified, which I was under the impression that they would be when I bought the vehicle. For me, this is a matter of $2,600 so it is extremely important. It is my understanding that the certification requires very little of the manufacturer, and I know there are others in the same situation as I am having purchased a new '05 Hybrid in 2006 with the expectation of getting a tax credit. It seems to me that Ford is doing their customers a great diservice by not having the '05 models certified as well. If there is someone specific that I could/should be addressing this concern to, please let me know. Thank you.

-------------------------

Dear Patrick,

Thank you for contacting the Ford Motor Company Customer Relationship Center with your follow-up email.

As previously communicated, we do not have information available regarding tax credits here at the Customer Relationship Center. Unfortunately, we do not have access to any resources that would aid in providing information on who you may wish to contact in regards to this. We apologize if the websites previously provided to you did not assist with your request, but at this time we do not have any additional contact information pertaining to your inquiry.

We consider the satisfaction of our customers one of our most important objectives. If you have any other inquiries or concerns, please feel free to contact us and we will be happy to address them for you.

Sincerely,
Arnique
Customer Relationship Center
Ford Motor Company


How very useful their customer relationship center is...

 

There are only 2 logical possibilities here:

#1 If you buy a 2005 FEH now, you get the same tax benefit as I did in 2005.
You get a TAX DEDUCTION based on the "differential cost" of the hybrid, vs. traditional Escape. Your benefit varries by tax bracket.

#2 If you buy a 2005 FEH now, you get the same tax benefit as the 2006, since it is EXACTLY the same vehicle. You get a fixed TAX CREDIT.

It's either #1 or #2. Since #2 is worth more money, file using the 2006 rules. If it's wrong ( doubtful anyone would catch it ) you can show you did your best, and based on information you had, followed the rules. It's not a scam, and worst case is your rebate is smaller by half. You deserve something, no matter what.

-John

 

I disagree. It is not simply one or the other...it may be neither. As it stands now the vehicle is not eligible for anything. It would have had to be purchased by 12/31/2005 to be eligible for the old deduction. Since the 05's have not been certified they are also not eligible for the credit. He needs Ford to get the 05's certified or he'll get nothing.

 

I disagree wholeheartdly.

There is the letter of the law, and the spirit of the law.

The spirit of the law applies.
The FEH was certified in 2005.
Simply sitting on a lot ( unused I presume ) does not change its clean air properties, or fuel economy properties.

I would say, and most IRS agents would say the 2006 law, the law under which it was purchased applies. It is a technicality it is 2005 and not 2006.
They are indistinguishable under the hood.

I will bet the price of the rebate, no IRS agent would prosecute anyone taking a credit for this vehicle. Each manufacturer gets 60,000 credits this year, and Ford will not make anywhere near 60,000 units, hence there is no chance of cheating the maximum allowable credits, even if several people buy (new) 2005's this year.

Chill out.

 

"There are only 2 logical possibilities here"


That right there is where you, and the IRS, diverge in your thought process.

I have worked with tax credit programs administered by the IRS, and other govt agencies, for almost 10 years now, and I can tell you with 100% certainty that they don't care about "logic" and they don't care about "spirit of the law" when they are reviewing your tax return for compliance with the tax code. All they care about is the letter of the law.

And if you think the letter of the law gives an inequitable/unfair result, you need to petition the IRS and get a revenue ruling or private letter ruling. You need to ask them to change the letter of the law, not hope they will follow the spirit of the law. The rev. ruling/plr process takes upwards of 6 months by the way.

It is possible you can claim the tax credit for your 2005 FEH and not get caught in an audit. However, I can tell you that as things stand right now, a 2005 FEH bought new in 2006 does NOT qualify for the tax credit, and it does not qualify for the previous tax deduction, and you would be committing tax fraud by claiming that credit on your tax year 2006 return. If caught, you would be subject to fines and interest penalties.

I'm not saying this to scare anyone, but facts are facts. As things stand right now, unless and until Ford sends in the necessary paperwork to certify the 2005 FEH for the new tax credit, and the IRS subsequently releases information that it has been certified for the tax credit, you can't claim it on a 2005 FEH bought new in 2006.