Purchasers of Honda Hybrid Vehicles Can Still Qualify for Alternative Motor Vehicle Credit (IR-2006-115)



The IRS has announced that purchasers of certain Honda vehicles may continue to claim the Alternative Motor Vehicle Credit under Code Sec. 30B. According to the IRS's recent Quarterly Report of Qualified Vehicles for the Alternative Motor Vehicle Credit, Honda sold 9,072 qualifying vehicles to retail dealers during the first quarter of 2006.




The credit under Code Sec. 30B applies to qualified vehicles purchased on or after January 1, 2006. Taxpayers planning to take advantage of this credit should do so as soon as they are able as the credit will only be available temporarily. The full amount of the credit may be claimed up to the end of the first calendar quarter after the quarter in which the vehicle manufacturer records its sale of the 60,000th vehicle. Taxpayers can claim 50 percent of the applicable credit for vehicles purchased in the second and third quarters following the first quarter in which the manufacturer records its 60,000th sale. Only 25 percent of the credit will be allowed for purchases in the fourth and fifth quarters thereafter. And, no credit will be allowed after the fifth quarter.

 

If you can't claim the tax until its time to file next year, how can we take advantage of it now ????

 

I think Roy is saying that folks that have not bought a Civic Hybrid - yet - can get the FULL tax credit still - if they buy now.