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Some hybrid tax credits are phasing out

If you are considering purchasing a hybrid passenger vehicle for yourself or model_ford_escape_pngyour business, tax credits are still available on Ford products. Taxpayers may claim the full amount of the tax credit only on purchases made before April 1, 2009, because the total number of vehicles sold reached the 60,000 vehicle threshold in the last quarter of 2008. The cumulative sales of qualified Ford hybrid vehicles sold from the period of Jan. 1, 2006, to Dec. 31, 2008 is 66,157.

For vehicles purchased for use or lease on or after April 1, 2009, and on or before Sept. 30, 2009, the credit is 50 percent of the full amount. For vehicles purchased for use or lease on or after Oct. 1, 2009, and on or before March 31, 2010, the credit is 25 percent of the full amount. For vehicles purchased for use or lease on or after April 1, 2010, no credit is allowable.

The full credit amount for vehicle purchases made prior to April 1, 2009 is:

·         2005, 2006, 2007 Ford Escape 2WD, $2,600;

·         2008, 2009 Ford Escape 2WD, $3,000;

·         2005, 2006, 2007, 2009 Ford Escape 4WD, $1,950;

·         2008 Ford Escape 4WD, $2,200;

·         2010 Ford Fusion, $3,400;

·         2008, 2009 Mercury Mariner 2WD, $3,000;

·         2006, 2007, 2009 Mercury Mariner 4WD, $1,950;

·         2008 Mercury Mariner 4WD, $2,200;

·         2010 Mercury Milan, $3,400

The credit was made available because of the Energy Policy Act of 2005. For 2009, full credit is available on the following vehicles in addition to Ford models until sales quotas are met:

• Chrysler: Aspen hybrid, $2,200

• Dodge: Durango hybrid, $2,200

• Mazda: Tribute hybrid 2WD, $3,000; Tribute hybrid 4WD, $1,950

• Mercury: Mariner hybrid, 2WD, $3,000; Mariner hybrid 4WD, $1,950

• Nissan: Altima hybrid, $2,350.

A hybrid is a vehicle that has a drive train powered by both an internal combustion engine and a rechargeable battery.

Source: Internal Revenue Service,


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