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Thread: Tax Credit/Deduction?
04-08-2006 05:07 AM #31
There was a lot of publicity in newspapers about this hybrid car credit. We bought a 2006 Ford Escape hybrid in March of 2006 with the full expectation that, as we had read in several articles in the newspaper (Philadelphia Inquirer) and magazines, that as long as the 2006 model was purchased after 1/1/06 and before 3/31/06, we would be eligible to take the hybrid credit on our 2005 return.
That turns out not to be the case.
It looks as if this thing is so new that the stories got all out of wack. I'm going to file an extension and take this whole mess to an accountant (was just going to do it myself before this) for fear of losing the credit if we wait til next year.
04-08-2006 06:08 AM #32
Wait! Go ahead and file your taxes for this year. For 2006, you'll get a credit worth more than the deduction you would have gotten in 2005. Unless you have some specific reason for wanting this deduction in 05 rather than the larger credit in 2006, wait until next year.
04-08-2006 06:43 AM #33
Right--I'm understanding that from reading this page. But all the articles we read about the credit seemed to say that you could and should file for the credit with your 2005 taxes if you bought the car in the 1st 3 months of 2006.
Now I see that there was a deduction for 2005 that expired 12/31/05 and a new credit for 2006. The stories I read seemed to confuse the two, and made it sound as if you would miss out on the credit entirely if you didn't put in for it with your 2005 taxes--or maybe we just misunderstood what we read.
05-02-2006 10:07 PM #34
For a Prius purchased in 2006 I am confused as to who qualifies for the now approved credit of $3,150. The Toyota.com web -site states "The benefit of the hybrid vehicle tax credit will also be substantially reduced or eliminated if the individual purchaser is subject to the federal alternative minimum tax".
My understanding is that regular and AMT federal tax liabilities are computed before credits are applied and these credits are then subtracted.
Why does the Toyota site state this when there is no reference or 2006 tax forms have not yet been produced by the IRS ?
Any smart CPA out there who can answer this one ?
05-03-2006 11:00 AM #35
See the Mar 16 statement by Bruce as to how the hybrid credit is treated a little differently than the normal credits
06-23-2006 06:20 AM #36
Will the Tax Credit CAP be lifted in an election year?!!
"Domestic hybrid PROPOSED extended tax credit (bill):
Congressman Rahm Emanuel (D-IL) has introduced H.R. 4458, the 'American Hybrid Tax Credit Act of 2005.'
The bill would give an additional $3,000 tax credit over and above the currently enacted federal tax credits for "a new qualified hybrid motor vehicle which is assembled in the United States."
The total tax credit would be capped at $6,000. This would currently apply to the Ford Escape Hybrid and Mercury Mariner.
Models expected to be released in 2006 that would qualify for this extended credit would be the Toyota Camry Hybrid (built in Kentucky) and the Nissan Altima Hybrid (built in Tennessee). Referred to the Ways and Means Committee 12/7/05.
Lifting the 60,000 cap on the hybrid tax credit (bill): Senators Evan Bayh (D-IN), Joe Lieberman (D-CT), and Sam Brownback (D-KS) have introduced a broad bill (S. 2025) that would remove the cap on hybrid tax credits as part of a package to reduce domestic oil usage.
Representative Jack Kingston (R-SC) and Elliot Engle (D-NY) introduced a similar bill (H.R. 4409) in the House. Representative Chris Shays (R-CT) introduced a broad ranging energy bill (H.R. 4384) that in addition to several incentives for renewable energy and energy efficiency across all energy sectors would remove the cap on hybrid tax credits. "