Tax question: Hybrid Car Deduction

[gilpo]

I bought a used hybrid this year. Any one know if I will be able to take the tax deduction? Or does it only apply to new vehicles?

[grizmaster]

1. here you go

it has worksheets for you to check what your deduction would be at the link below the first chart

http://www.fueleconomy.gov/feg/tax_hybrid.shtml

Hybrids purchased or placed into service after December 31, 2005 may be eligible for a federal income tax credit of up to $3,400.

Credit amounts begin to phase out for a given manufacturer once it has sold over 60,000 eligible vehicles.

[soothsayer]

2. Looks like a NO to me (see 2 a and 3a below)

May 2006

The Energy Policy Act of 2005 provides a credit for taxpayers who purchase certain energy efficient vehicles, including Qualified Hybrid vehicles.¹ Notice 2006-9 provides procedures for manufacturers to certify to the Internal Revenue Service that certain vehicles qualify for the credit and the amount of the credit.² Generally, for a passenger car or light truck that is a qualified hybrid vehicle, a taxpayer may rely on the manufacturer’s certification that a specific make, model, and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies.³

Even though a manufacturer has certified a vehicle, a taxpayer must meet the following requirements to qualify for the credit:

1.
The vehicle must be placed in service after 12-31-05 and purchased on or before 12/31/10.

2.
The original use of the vehicle must begin with the taxpayer claiming the credit.

a. The credit may only be claimed by the original owner of a new, qualifying, hybrid vehicle and does not apply to a used hybrid vehicle.

3.
The vehicle must be acquired for use or lease by the taxpayer claiming the credit.

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

b. For qualifying vehicles used by a tax-exempt entity, the person who sold the qualifying vehicle to the person or entity using the vehicle is eligible to claim the credit, but only if the seller clearly discloses in a document to the tax-exempt entity the amount of credit.

4.
The vehicle must be used predominantly within the United States.

As of July 11, 2006, the Internal Revenue Service had acknowledged the manufacturers’ certifications of the following qualified hybrid vehicles and credit amounts (additional vehicles may subsequently be acknowledged).

[Johonny]

3. You can't

Has to be new

[gilpo]

4. Thanks everyone!

Too bad I can't write it off, but I don't regret the purchase!