The IRS has begun the process of helping consumers determine the amount of federal income tax credits for hybrid-electric cars and light trucks.
IRS Begins Process for Determining Hybrid Tax Credit Amounts;
Washington, D.C., January 13, 2006 - The IRS has begun the process of helping consumers determine the amount of federal income tax credits for hybrid-electric cars and light trucks. Under the Energy Policy Act of 2005, the tax credits range from $250 to $3,400, depending on a vehicle's weight and its fuel efficiency.
The guidelines direct automakers to "certify" to the IRS which vehicles qualify for a credit and how much, and it gives the agency 30 days to accept the certification.
If the IRS should determine at a later date that the automaker was mistaken, it will revoke its acceptance of the certification for future sales. But anyone who purchased a vehicle on the basis of the original certification, prior to its revocation, will be able to claim the tax credit.
More information is available on the website of the Alliance to Save Energy, www.ase.org.taxcredits.
The Alliance to Save Energy is a coalition of prominent business, government, environmental, and consumer leaders who promote the efficient and clean use of energy worldwide to benefit consumers, the environment, economy, and national security.