FYI: Federal tax credits expiring soon
#1
11-25-2008, 01:38 PM
FYI: Federal tax credits expiring soon
I just picked up my new '09 FEH last Thursday night (to replace my current '05 FEH -- anybody want an 05?) ANYWAY... I just got the following from my dealer today:
The rules are that companies have to report the number of qualifying vehicles produced each quarter. In the quarter where they finally hit the quota for the number of credits allowed (each manufacturer gets 60,000 units) _every_ car built in that calendar quarter AND the calendar quarter immediately following it gets the full value of the tax credit (subject to other IRS rules... you can never claim more credit than Alternative Minimum Tax calculations allow).
This means any buyer of an '09 FEH in this quarter (through Dec 31, 2008) and the following quarter (through Mar 31, 2009) gets full credit. Then the credits start to ramp-down (50% credit for the next 6 months, then 25% credit for the 6 months after that, then no credit at all.)
Just thought you'd like to know.
Also... the government definition of whether you qualify is based on the date the vehicle was "put into service" (in other words when did you actually have it titled & plated). Sadly, the order date doesn't count.
Regards,
Tim
Escape Hybrid Tax Status Update
As of the end of 3Q, we did not exceed the 60,000 threshold for hybrid sales, however we will exceed the threshold in 4Q. What this means to customers is that the tax credit will remain in effect at the full amount until the beginning of 2Q 2009. Additionally, models of Fusion and Milan Hybrid sold in 1Q 2009 will qualify for a full tax credit. While we do not know what that amount will be yet (it is based on the fuel economy of the vehicle and we do not have final numbers yet) we do expect it to be at least $3,000 at the full level (100% of credit). For additional information, please see the government hybrid tax page at http://www.fueleconomy.gov/feg/tax_hybrid_new.shtml
As of the end of 3Q, we did not exceed the 60,000 threshold for hybrid sales, however we will exceed the threshold in 4Q. What this means to customers is that the tax credit will remain in effect at the full amount until the beginning of 2Q 2009. Additionally, models of Fusion and Milan Hybrid sold in 1Q 2009 will qualify for a full tax credit. While we do not know what that amount will be yet (it is based on the fuel economy of the vehicle and we do not have final numbers yet) we do expect it to be at least $3,000 at the full level (100% of credit). For additional information, please see the government hybrid tax page at http://www.fueleconomy.gov/feg/tax_hybrid_new.shtml
This means any buyer of an '09 FEH in this quarter (through Dec 31, 2008) and the following quarter (through Mar 31, 2009) gets full credit. Then the credits start to ramp-down (50% credit for the next 6 months, then 25% credit for the 6 months after that, then no credit at all.)
Just thought you'd like to know.
Also... the government definition of whether you qualify is based on the date the vehicle was "put into service" (in other words when did you actually have it titled & plated). Sadly, the order date doesn't count.
Regards,
Tim
#3
12-02-2008, 06:16 AM
Re: FYI: Federal tax credits expiring soon
Of course I'm REALLY hoping Obama will open the door to even more tax credits for hybrids and electric cars. We NEED to get more of these out on the road.....NOW!
On an semi-related note....did anyone hear that CEO Mullaly(sp?) was going to DRIVE to Washington for his testimony in an FEH? That's what he should have done the FIRST time!!!! I mean, what planet are these guys on (the auto CEOs). What a statement that woudl have made....of course I'm still kinda mad Ford reversed it's decision to put xxx thousands of hybrids on the road by 2010. It sucks they went back on that decision.
Nate
#4
12-02-2008, 10:32 AM
Re: FYI: Federal tax credits expiring soon
True, however, while Ford could build xxx thousands of hybrids, the sales numbers for the Escape don't justify that they would all sell. Part of the equation is demand. Far too many people in this country are still wrongly convinced that american car companies don't make good vehicles.
#5
12-02-2008, 10:46 AM
Re: FYI: Federal tax credits expiring soon
I'd love to see the Obama Administration (and/or Congress) step up and renew (for you perspective Toyota, Honda and ,now, Ford hybrid owners) / extend (everyone else who's looking at a hybrid purchase) the hybrid credits and maybe even expand them.
I know that I really enjoyed the $3600 in tax credits I received as it made my hybrid darn close to the same price as a comparably equipped standard model. For me it was a no-brain-er to go with the hybrid model once you added in the tax credit.
And "Yay!" for Ford for being the first Domestic to make it to the 60,000 mark. They did it with only 1 model (ok, 3 if you also count the MMH/MTH). Now that the Fusion Hybrid is about to hit the road, I expect the sales to pick up even more.
I know that I really enjoyed the $3600 in tax credits I received as it made my hybrid darn close to the same price as a comparably equipped standard model. For me it was a no-brain-er to go with the hybrid model once you added in the tax credit.
And "Yay!" for Ford for being the first Domestic to make it to the 60,000 mark. They did it with only 1 model (ok, 3 if you also count the MMH/MTH). Now that the Fusion Hybrid is about to hit the road, I expect the sales to pick up even more.
#6
03-01-2009, 06:06 AM
Re: FYI: Federal tax credits expiring soon
Does anyone know the answer to: for a vehicle (FEH/MMH) purchased in the first quarter of 2009, can the text credit be done on one's 2008 taxes?
#7
03-01-2009, 10:10 AM
Re: FYI: Federal tax credits expiring soon
In the past the answer was No. The 2007 IRS form 8910: Alternative Motor Vehicle Credit ask for the date the vehicle was placed in service (line 2). Since that would be a 2009 date from what you said, you would not be able to claim the credit on your 2008 taxes. You will however get full credit (no phase out reduction) on your 2009 taxes.
That said, the 2008 version of the form 8910, has been pulled for adjustment. "The draft of the 2008 Form 8910, Alternative Motor Vehicle Credit, is
being revised to reflect provisions in the American Recovery and
Reinvestment Act of 2009, and will be reposted soon" (ref)
Disclaimer:I'm not a tax professional so I'm only going off of what I gathered from the available IRS forms.
That said, the 2008 version of the form 8910, has been pulled for adjustment. "The draft of the 2008 Form 8910, Alternative Motor Vehicle Credit, is
being revised to reflect provisions in the American Recovery and
Reinvestment Act of 2009, and will be reposted soon" (ref)
Disclaimer:I'm not a tax professional so I'm only going off of what I gathered from the available IRS forms.
Last edited by MyPart; 03-01-2009 at 10:13 AM.
#8
03-01-2009, 12:58 PM
Re: FYI: Federal tax credits expiring soon
No, it must be taken on the 2009 taxes. Even if you purchased the vehicle in 2008, but didn't take delivery until 2009, you couldn't take the credit until your 2009 taxes.
#9
03-04-2009, 05:31 PM
Hybrid and Ethanol Expert
Join Date: Mar 2005
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Re: FYI: Federal tax credits expiring soon
The Obama plan has a $7500 rebate for "plug-in" vehicles.
I'm not sure if that means "electric only" or plug-in gas/electric hybrids count too. Anyone know?
I'm not sure if that means "electric only" or plug-in gas/electric hybrids count too. Anyone know?
#10
03-04-2009, 08:40 PM
Re: FYI: Federal tax credits expiring soon
This link: http://www.energystar.gov/index.cfm?...pr_tax_credits states:
Starting January 1, 2009, there is a new tax credit for Plug-in hybrid electric vehicles, starting at $2,500 and capped at $7,500 for cars and trucks (the credit is based on the capacity of the battery system). The first 250,000 vehicles sold get the full tax credit (then it phases out like the hybrid vehicle tax credits).
This link: http://gm-volt.com/2008/10/03/along-...now-7500-less/ provides more specific information on the rebate details.
This provision provides a tax credit for buyers of plug-in electric vehicles. It provides a base of $2500 plus an additional $417 per kwh for batteries greater than 4 kwh.
Starting January 1, 2009, there is a new tax credit for Plug-in hybrid electric vehicles, starting at $2,500 and capped at $7,500 for cars and trucks (the credit is based on the capacity of the battery system). The first 250,000 vehicles sold get the full tax credit (then it phases out like the hybrid vehicle tax credits).
This link: http://gm-volt.com/2008/10/03/along-...now-7500-less/ provides more specific information on the rebate details.
This provision provides a tax credit for buyers of plug-in electric vehicles. It provides a base of $2500 plus an additional $417 per kwh for batteries greater than 4 kwh.
