Are Gas Prices Getting You Down?

Author: Thomas R. Vander Hulst
Date: 07/03/2007

With the high price of gas, many people are considering buying hybrid vehicles. Buying a hybrid will save money at the gas pump but may also put money in your pocket in the form of the alternative motor vehicle tax credit. This credit allows you to reduce your federal income tax if you purchase certain vehicles. However, the full credit can only be claimed until the end of the first calendar quarter after the quarter in which the manufacturer records the sale of its 60,000th vehicle. After that, the credit is phased out.
The IRS recently announced that certain Ford models qualify for a tax credit. They are: 2008 Ford Escape 2WD Hybrid, $3000; 2005, 2006 and 2007 Ford Escape 2WD Hybrid, $2600; 2008 Ford Escape Hybrid 4WD, $2200; 2005, 2006 and 2007 Ford Escape 4WD, $1950; 2008 Mercury Mariner Hybrid 4WD, $2200; 2005, 2006 and 2007 Mercury Mariner Hybrid 4WD, $1950; and 2008 Mercury Mariner Hybrid 2WD, $3000.
Other vehicles that may qualify are: 2006 and 2007 Chevrolet Silverado Hybrid Pickups; 2006, 2007 GMC Sierra Hybrid Pickups; 2007 Saturn View Greenline; and 2007 Saturn Aura Hybrid. The credits for certain Toyota and Lexus models are being phased out.
If you are in the market for a new vehicle, consider a hybrid and Uncle Sam may just support your purchase.