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04-13-2008 11:01 PM #1
- Join Date
- Mar 2008
How to receive the Tax incentive for Hybrid purchase
This is kind of for you Hybrid onwers.
With the opening of the order book just around the corner, the question came up, just how does one apply for the tax incentive that comes with your new Hybrid?
I read something that the dealer takes care of everything. Well thats fine, but I think the 2009 FEH/MMH are almost at 60,000 which means the number goes down. Wait a minute, the dealer does what exactly.
I guess thats what I'm trying to understand, what is involved.
04-13-2008 11:29 PM #2
- Join Date
- Feb 2008
Paul, go to irs.gov and get
Paul, go to irs.gov and get the writeup on Hybrid Cars and Alternative Fuel vehicles, and then download Form 8910, which comes with the instructions as to how to fill it out. The rest is up to you or your tax attorney, whichever route you prefer.
04-13-2008 11:47 PM #3
- Join Date
- Oct 2006
As far as I know, Ford will
As far as I know, Ford will handle everything with the approval of the IRS as the numbers are sold. My '05 was in the program and all I did was have H&R Block fill out the IRS form. I'm sure the dealers will be notified as what incentive are still available, but of course I wouldn't take their word on anything.
When I ask my Broker to check on ordering and purchasing an '09 FEH and Prius, he got me a price on the '08 Prius and gave me paperwork on its tax incentive. I'm going to order an '09 FEH ASAP, and hope I'm still in line for the incentive still. Since all the '08 FEH/MMH have not been sold yet, I don't think we can get an answer just yet. Some States also have a separate incentive, but I know Florida doesn't. I did get a letter from my State saying I bought a FEH and could purchase a $5 HOV lane sticker for it.
This is a big issue for the Prius as they approached the max number for the full incentive, so I think we'll have post here and other places for the FEH/MMH numbers.
04-14-2008 05:06 AM #4
- Join Date
- Dec 2007
We always use TurboTax to do
We always use TurboTax to do our taxes and this year when it asked me about new car purchases and when I checked "yes" it went further and asked if it was a hybrid, then what make and model and then entered the correct tax credit for our 2008 FEH and the form 8910 was part of the paper work that printed when I printed my archive copy.
It was a beautiful thing.
05-20-2008 03:38 AM #5
- Join Date
- May 2008
Is there a way to receive a
Is there a way to receive a tax credit on a vehicle that you convert over to a hybrid, or is this a credit only allowed on new hybrid vehicles purchases?
05-20-2008 04:55 AM #6
The credit is only available
The credit is only available on qualified hybrid vehicles as defined by the IRS. This link should give you some additional info.
05-20-2008 05:06 AM #7
- Join Date
- Apr 2008
I believe it is only
I believe it is only available to IRS approved vehicles listed at http://www.irs.gov/irs/article/0,,id=176409,00.html up until the 60,000, then they begin a phaseout process. i.e. if Ford sells their 60,000 FEH/MMH/MTH on January 1st 2009, then the tax credit will begin phase out for every one of these vehicles sold after the end of the first quarter from it's 60,000th vehicle sold (in this case, March 31, 2009). It will decrease by 50% for the first two quarters (6 months) after and then by 75% for the thrid and fourth (6 months) until there is no more benefit... which should be March 31, 2010.
I went through this process when I filed my taxes this past year for 2007. When I purchased my 2008 FEH in June of 2007, Ford had reported less than 30,000 of these vehicles sold. Don't bother asking your dealer salesperson how many have been sold or how to file for the credit, as they will likely look at you like you have two heads. This was my case. Only after I did my own research did I realize that this process is really controlled by the IRS and Ford reporting it's sales. You as the buyer hold the key to whether or not you will get the credit. The key aspects are:
1. When you buy your FEH/MMH/MTH. Keep an eye on the 60,000 mark at IRS.gov. They don't seem to post updates more than twice a year if that... and I have read that the FEH is close to 60,000 sold if not there already. Maybe someone on this site knows of a website that has more updated sales figures from Ford? Bottom line is... order soon if you wish to claim this credit!
2. How much money you make. While the credit is potenitally a dollar for dollar back in your pocket (kind of like a rebate from Uncle Sam), if you make too much money you may not be eligible for the credit. For those high income folks out there that claim many deductions... this may come back to haunt you. Those that are required to pay AMT (Alternative Minimum Tax) may not be eligible for your hybrid tax credit. Form 8910 or in us folks that are not numerically inclined... Turbotax will help you figure this out.
All in all, the tax credit was a simple addition to my taxes this year and paid good dividends. In my opinion it is a no-brainer as it pretty much offsets the cost of the hybrid FE versus it's full gas counterpart. Shop smart and shop green... the two usually coincide. Best of luck.
05-20-2008 04:12 PM #8
A smal correction to the
A smal correction to the process. The decrease begins after the second full quarter following reaching the 60,000 sale threshold. Estimates are that for January '06 and forward, FEH/MMH sales were just above 50,000 as of December 31, 2007. Based on sales rates and availability, it is unlikely that the 60,000 mark will be hit until at least 2nd Quarter, which means you can still get the full credit (currently $3,000 for FWD and $2,200 for 4WD - subject to change with the '09 models) at least through September 30, 2008.
05-20-2008 04:15 PM #9
Here are some additional
Here are some additional useful IRS links:
05-20-2008 04:20 PM #10
Clarification of my own
Clarification of my own post: the reduction of credit begins following the first full quarter following reaching the 60,000 threshhold. This means that if Ford sells the 60,000 on April 15, 2008, all purchasers would qualify for the full credit through September 30, 2008 and then it would reduce by 50% beginning in the fourth quarter.