Fusion and Milan Hybrids Get $3,400 Tax Credit

Buyers of a new 2010 Fusion Hybrid or Mercury Milan Hybrid this year will qualify for a $3,400 tax credit, the highest credit amount offered for hybrids. The base MSRP for the Ford Fusion Hybrid—which is rated at 41 mpg in the city and 36 mpg on the highway—is $27,300.

Toyota produces two midsize sedan hybrids with comparable fuel efficiency, the Toyota Prius and Toyota Camry Hybrid. Both vehicles sell in the mid-$20,000 range—but Toyota vehicles no longer qualify for the hybrid tax credit because the company has exceeded the 60,000-unit limit built into the federal incentive program.

Low gas prices have put a damper on sales of fuel-efficient vehicles, including small cars and hybrids. The $3,400 tax credit could stimulate interest in Ford’s new hybrid sedans. Derrick Kuzak, Ford group vice president of global product development, said, “We’re glad to see our government help promote these advanced, clean fuel-efficient vehicles to the consumer.”

The 2010 Fusion and Milan Hybrids join the Ford Escape and Mercury Mariner Hybrids, doubling the company’s hybrid product offerings and volume.


  • Shines

    Wow a comfortable, good looking and reliable family sedan that gets 40mpg for under $24k. And in Washington State – a sales tax exemption (which saves another $2200).
    I may have to get one of these (me being a Ford fan).

  • Boom Boom

    I’m going to have to drop by a dealer to drive one of these once they show up on the lots. With the rebate it’ll be much cheaper than the Camry or the Altima. I’ve always been a fan of the Escape Hybrid (though, I’d never buy an SUV) and I’m happy to see Toyota with more competition. Let’s see if consumers buy more of these than the Camry (the Prius isn’t a mid-size competition to this car. The Prius is Corolla/Focus sized…).

    GM, are you taking notes? This is how you compete with Toyota. Build a better car. Don’t just advertise with green leaves.

  • unfrostedpoptart

    Great news. I’ve been thinking about getting one of these. I had been looking at the Altima Hybrid. Any thoughts comparing the two? Does anyone know of any California tax credits in addition to the Federal one?

  • sean t

    The winner is consumers.

  • HVA

    This is excellent news from Ford. Ford is trying very hard to change it’s image. They may survive with products like these.
    Now you know why Ford was not a desperate begger in DC!

  • Shellock

    Just watch out if you are hit by Alterative Minimum Tax your tax credit is Zero

  • Anonymous

    Doe anyone have actual dimensions to compare the 2010 Prius to the Fusion. The new Prius is bigger than the old one and I think people are over-estimating the size of the Fusion. Also the Prius is a hatchback. I would not be surprised if the Prius had more usable cargo capacity. Sedans are the least practical body type available, I wish they would make a wagon.

    Here’s the only photo comparison I could find ( very good)

    http://jalopnik.com/photogallery/priusfusioninsight/1006035518

  • Anonymous

    Doe anyone have actual dimensions to compare the 2010 Prius to the Fusion. The new Prius is bigger than the old one and I think people are over-estimating the size of the Fusion. Also the Prius is a hatchback. I would not be surprised if the Prius had more usable cargo capacity. Sedans are the least practical body type available, I wish they would make a wagon.

    Here’s the only photo comparison I could find ( very good)

    http://jalopnik.com/photogallery/priusfusioninsight/1006035518

  • steved28

    David, I own an Altima hybrid. I like the Fusion better (on paper). I think it looks better too, but that’s subjective. I wish they were around a year ago.

  • moishe k

    Where is your memory ?
    did forget all the prius owners steaming when they got ripped of on their tax credit
    did you verify wiith a CPA if you WILL get the tax credit
    you think UNCLE ScAM is so Generous

  • veek

    Note to David;
    I saw a comparison of four hybrids (Malibu, Fusion, Camry, and Altima) in one of the automotive magazines today (I think it was Car and Driver). The Fusion won decisively and the Camry placed second. The Fusion also took the mileage honors.

  • veek

    Note To David:
    PS. the same magazine also reported a new model Fusion, probably based on the European chassis, is scheduled to arrive in the Spring. Didn’t say if the new model would be adapted to the hybrid right away, but even if it isn’t, the current Fusion looks like a better choice than the other models, at least according to the review.

  • Boom Boom

    David,
    The mid-size hybrid head-to-head was in Car and Driver.

    http://www.caranddriver.com/reviews/comparison_test/sedans/2010_ford_fusion_hybrid_vs_camry_hybrid_altima_hybrid_and_malibu_hybrid_comparison_test

    The Fusion beat out the Camry and Altima (which accurately got almost the same rating). The Malibu stank. I don’t think anyone can call C&D a “america-hating” magazine.

  • Boom Boom

    Here are the numbers for the mid-size vs. compact comparison.
    (Measurements are Length/Width/Height/Wheelbase)
    2010 Prius: 176/69/59/106
    2008/9 Camry: 189/71/57/109
    2009 Fusion (I can’t find 2010): 190/72/57/107
    2008 Civic: 175/69/56/106
    2008 Corolla: 178/69/58/102
    2009 Prius: 175/69/59/106 (The 2010 Prius is less than an inch bigger in any direction. It is fractionally longer.)

    Now, Toyota claims that the Prius is a mid-size. The Civic is a compact. The Fusion and Camry, mid-size. The photo posted by anon and the numbers above show that the Prius is a compact. The chassis is much closer to the Corolla or Civic than a Camry or Fusion. Toyota has managed to get the interior space up into the “mid-size class” for the EPA by moving the rear seats back, but that is the only dimension that the Prius matches the Camry. If you look at the new Lexus Hybrid, it looks just like a Corolla (not a Camry), despite the fact that it is based on a Prius. Making a vehicle a hatchback or wagon, shouldn’t change the category of the vehicle. The Focus Wagon had more interior room than a Toyota Avalon, but the Focus Wagon was not considered a full-size.

    I like the Prius. I might even buy a 2010 Prius. But Toyota and the Prius fans have got to give up on on the nonsense that the Prius is comparable to a Camry. Why else would they have a Camry Hybrid and not a Corolla Hybrid? Why have two mid-size hybrids but no compact hybrid? One answer: They know it is a compact.

  • xprojected

    veek: The 2010 Fusion will be on the same chassis as before. It’s just getting an updated front, back, interior, and some new engines. You might be confusing it with the Focus, which will move to the European plaform in ’10 or ’11. The Hybrid debuts around the same time as the regular gas Fusion, i.e. this spring.

  • Fool Me Once

    Well having been the owner of several Fords in the past few years, I for one would not buy a hybrid from a company with their quality track record, regardless of the tax savings. I have had more mechanical problems with Ford then any japanese car I’ve owned by far.

    Hmm.. Buy a car with even more electronics to possibly break down from ford. NOTHANKS!

    Oh, and yes I am a patriot, but in these hard times I can’t afford to have my car in the shop as often as I had my regular fords.

    Prove to me that the quality and repair record will match Toyota or Honda and I’ll be first in line!

  • Lucien

    Sad thing Washington state only give sales tax exemption for cars achieving at least 40mpg on the highway. So unless I’m mistaken this hybrid won’t qualify. Only Insight/Civic/Prius currently.

  • Lucien

    If it comes to money though the Insight 2010 will still beat it with starting price of about $19K and much better cargo space and mileage plus in WA state you do get sales tax exemption.

    The Fusion unfortunately doesn’t offer foldable seats. But I concur with the Hybrid comparison test. It will compete very well in the mid-size Hybrid sedans.

  • Shines

    Lucien,
    The Hybridcars.com article on the 2010 Fusion states it gets 40 in the city… We’ll have to see when it finally arrives and the EPA rates it if Washington gives the tax break.

    Fool Me Once, Consumer Reports rates Ford the best of the domestics in terms of reliability. It is true that Toyota and Honda still have a significant lead, but the newest Fords are as reliable as new Toyotas were 7 years ago. Still you have to look at the reliability of the model you are interested in buying. The Escape Hybrid has been better than average…

  • Bryce

    hooray, efficiency cheaper for all!

  • RKRB

    Another automotive magazine has weighed in on the hybrid Fusion. Automobile mag says the Fusion beats the Camry in mileage, is a better drive, and is “a better car than the Camry” (and, presumably, the Altima) too. They like the Fusion, but did not do a full road test. Those will come later.

    The magazine also covered the Insight and Prius, although they were relatively bland in their coverage of those cars. They also have some pretty good tech material on the hybrids, including some “hybrid trivia” (did you know Count Carli of Italy constructed a hybrid system in 1894 made up of an electric drive supplemented … by rubber bands, and F. Porsche patented a series hybrid in ’97? 1897, that is.).

    Looks like Ford is doing nicely in the design department. just hope the UAW doesn’t get too greedy or too lazy again (we’ve earned our rights to criticize them, with 4 UAW-built vehicles in the last 12 years, including a delightful 3 year old Escape hybrid that has not had a single repair problem in its 32,000+ miles).

    Go Ford!

  • Lucien

    Shines,

    The article says:

    “…which is rated at 41 mpg in the city and 36 mpg on the highway—is $27,300″

    This matches Ford’s numbers. Too bad WA tax break only looks at highway:-(. They should change that…

  • Rick Kop

    This is a great deal but–The dealer told me you must take delivery of the Fusion by the end of March to get the full incentive. The catch is these won’t be available till the end of April or even May. Good luck on finding one. Very disapointing indeed!!

  • Ernie144

    The Fusion HWT EPS estimate is 36. HWY miligage must be 40 for WA Sales Tav exemption per RCW.

  • J. Downton

    From a couple of on-line articles I’ve read, if you ORDER or purchase before March 31, you can still take the full incentive. IRS website uses the words “purchase or place in service” — couldn’t find anything more specific than that. But a Car & Driver article I found (and others) states that as long as you ORDER before March 31, you’ll get the $3,400 incentive. There’s still time. Mine is on order. Nothing ventured, nothing gained.