Oh. Well..... never mind.

Don

 

This was posted a while ago in another thread (apparently). It's $2,100 for the Civic.

http://www.hybridcars.com/tax-deductions.html

 

You're looking at the estimated credit for the 2005 Civic Automatic, not the 2006.

This is what this thread is about, asking if anyone has anything firm for the 2006.

While the 2005 auto is estimated at $2100.00, the 2006's drive train is more advanced (can run only on the electric motor at times) and I was hoping that it would do something to close the tax credit gap between the 2005 Civic Auto ($2100.00) and the Prius ($3100.00).

Unfortunately it looks like we'll have to wait to see what the IRS says.

Scott

 

The tax credit for 2006 is calculated by the IRS, based on how more fuel efficient the car is, versus a similar, non-hybrid version, by the same manufacturer.

Due to the fact that the Prius says 60mpg, there's a bigger credit than the HCH that says 50mpg, of course, we all know the true stats ;-)

I don't know the basis of comparison for the Prius, maybe the Corolla? Where the basis for the HCH is the HC non-hybrid.

 

I just got off the phone with a very polite lady with the IRS.
She told me they had very limited information on the 2006 clean-fuel vehicle credit.
As previously stated on this thread the credit will be computed on the efficiency of the hybrid compared to the conventional and will be between 250 and 3100 dollars.

Now for the part that wasn't particularly clear to me. The number of people getting this credit is limited to 60,000 - HOWEVER, she clarified that it wasn't the first 60,000 to file, but rather the first 60,000 people purchasing that particular make/model. This differs from what my dealer told me, which was "file early so you're sure to get your credit." In all things I'd trust anyone more than him.

So I'm not sure how the IRS knows when to draw the line or how you prove that you got civic #45,678.

If you are really bored at work you can call the IRS at 1-800-829-1040


Hopefully more info will be available soon.

Cheers,
KBB

 

Surprisingly, for taxpayers who take a lot of deductions or use the Intrerestingly, I had seen some new info recently posted that has me a little worried.

• The credit will not reduce your alternative minimum tax, if that applies to you.
• The credit will reduce your regular income tax liability, but not below zero.
• If you are eligible for multiple tax credits, the hybrid tax credit is taken last after all the other credits (e.g., child care tax credit, mortgage credit, retirement savings credit) have been taken. Any tax liability left over by these reductions will be the maximum dollar limit of your hybrid tax credit. If your hybrid tax credit exceeds your maximum dollar limit, the excess is not refundable, and is lost forever.
• The excess cannot be carried over to another year, or given away to another person.

Bottom line, as I understand this is, if you expect to get a refund, the Hybrid Tax credit WILL NOT add to that refund. The credit will only help if you OWE TAX when filing your 2006 return.

 

--

 

lkewin - can you supply a link to that info, especially as pertains to your last paragraph ? If true, then almost no one will be getting any benefit to this credit, seeing as how most people tend to receive refunds.

Of course, this wouldn't surprise me, given this came from the administration that said "we're giving you a $300 refund" that was disguised as an advance on the following year's refund.

Just follows their propensity to spend now, pay never.


Schadenfreude...

 

Oh this is complete and utter *****. I agree with the above poster about many people expecting refunds.

I thought that I would get the refund of the value of the tax credit... so now basically the tax credit does me no good whatsoever.

****.

 

But Larry posts in his second bullet that it will reduce your tax liability, but not below zero. Wouldn't this one alone help everyone reducing tax liability?