Mazda's 2008 hybrids certified for full vehicle tax credit
The Energy Policy Act of 2005 replaced the clean-fuel burning deduction with an alternative motor vehicle credit. The credit applies to hybrid vehicles, which are powered by both an internal combustion engine and a rechargeable battery and which are certified by the federal government. The credit is subtracted from the total amount of federal tax owed, thus reducing the taxpayer's tax obligation.
Since the 2005 model year, the IRS has certified over 35 vehicles sold by Honda, Toyota, GM, Ford and Nissan Motors. The IRS has certified two more vehicles from another manufacturer, Mazda. Purchase of the 2008 Mazda Tribute 2WD Hybrid carries with it a $3,000 alternative motor vehicle credit; the 2008 Mazda Tribute 4WD Hybrid carries a $2,200 credit.
Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
If you have any questions about this tax credit or whether purchasing a hybrid vehicle is something you should consider, please call Dan Duncan or Mike Scialo at 630-285-0215.