Tax Credit Gives 2008 Altima Hybrid An Edge over Camry Hybrid

Nissan Altima Hybrid

The 2008 Nissan Altima Hybrid has been officially approved by the IRS as a qualified hybrid vehicle for the Alternative Motor Vehicle Credit. Buyers of the car may now be eligible for a tax credit up to $2,350, the same amount offered for the 2007 model of the car. The renewal of the Altima tax credit gives Nissan’s hybrid an advantage over its closest competitor, the Toyota Camry Hybrid. Toyota hybrids are no longer eligible for any tax credit.

The IRS reported that Nissan sold a total of 7,849 qualifying hybrid vehicles as of the quarter ending September 30, 2007. According to tax credit guidelines, an automaker can offer the incentive on its vehicles until it sells 60,000 qualified hybrids. Once sales hit this magic number, the credits begin to phase out. Nissan has quite a long way to go before hitting the ceiling—especially since the Altima Hybrid is currently available in just eight states.

The Altima Hybrid’s retail price is competitive at $24,400—about $1,500 less than the Camry. When you add another $2,350 offered to Altima buyers in the form of the federal hybrid tax credit, then the difference in price between the two vehicles approaches four grand.

Toyota and Honda have each already sold their 60,000 hybrids. The reduction of tax credits for Toyota hybrids, which were the first to expire, have apparently had little effect on sales of the company’s hybrid vehicles.

It remains to be seen if Nissan’s cost advantage—as a result of the tax credit—creates more interest in the Altima Hybrid in the eight states where the vehicle is sold.

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  • jose valenzuela

    nice car…

  • otto

    nice legislation

  • Collin

    I have had mine since March and it’s a really nice car.

  • kelli

    how do i find out if nc is a state that offers this altima hybrid?

  • BB

    California, Connecticut, Maine, Massachusetts, New Jersey, New York, Rhode Island or Vermont.

  • Moishe K

    Unless you have no kids mortgage or other deductions the tax credits don’t mean anything to most taxpayers see your CPA before falling for the bait

  • Giant

    Moishe has a point. The tax credit is subject to the alternative minimum tax. My $2600 camry hybrid tax credit was reduced to roughly half by the AMT.

  • BB
  • Lorin K

    We live in Maryland (near Washington DC) and may be shopping for a hybrid sedan in 2008. Could we buy an Altima in southern NJ (about 100 miles from us) for our use here in Maryland?

  • JY

    Lorin, I don’t see why not. My friend bought one in Calif. and registered it here in Nevada where we live. Nice car!

  • Danny

    Yes, go for it! many people have done this. just make sure your local Nissan dealer has a hybrid certified technician (there should be at least 1 at every dealership). you can even go to your local dealership and see if they will trade with a dealership in jersey. good luck!

  • Matt

    I am married, we rent and have combined incomes over $150,000. Are we subject to AMT?

  • AP

    This whole situation shows how futile and arbitrary it is to use incentives to affect purchases rather than usage. It would make more sense to charge more for fuel (encouraging ALL fuel-efficient vehicles, not just hybrids) and return the revenue as income tax credits to EVERYONE.

  • Juan S.

    I work in the auto industry right now and can tell you that the hybrid cars resale value is not that great and you should be careful how you buy your car, in short now is a great time to buy.

  • Andrew Winder

    Juan – I don’t know what the heck you’re talking about, just looks at how much a 5 year old Prius is selling for and tell me thats not way above average. The resale value far outpaces anything you see in a traditional gas car.