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Question about the tax credit

Created May 12, 2007, at 2:04 pm by jcasetnl

Is the tax credit a one-time thing? Or can you claim it each year until it meets the expiration conditions?

If it's the latter, is the amount you can claim "locked in" for the life that the credit is offered (until 2010), or does the amount you can claim diminish according the schedule on the IRS site?

Thanks,

Jon

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Nicholus
Member

4 years ago

my understanding is that you're eligible for the tax credit in the same year as you made the purchase. So, yes, a one time thing. If you have a tax advisor who just did your taxes, tell them that you're considering the altima purchase, and that you're wondering if you're eligible for the full tax credit (different - and better - than a deduction, by the way) or not. Some people who are impacted by the Alternate Minimum Tax have a reduced benefit.

So...
- Assuming you are fully eligible
and
- you get a Nissan hybrid before they sell 60,000
and
- that happens before the tax credit legislation expires

you are eligible for the full tax credit (money back in your pocket at tax time) for the tax year in which you made the purchase.

After the 60,000 Nissan hybrid is sold, the credit diminishes heavily. The Toyota ones are all but gone.

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langjie
Senior Member

4 years ago

Nicholus: your understanding is absolutely correct

note: i wouldn't worry about Nissan hitting the 60,000 mark anytime soon. for FYE 2006, nissan reported 2,094 cars. though i think the deadline on this bill is 2010

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