Various Ford and Mercury Hybrids Get Tax Credit Certification From IRS
Below is a MRR and PLR article in category Finance -> subcategory Taxes.
Ford and Mercury Hybrids Receive IRS Tax Credit Certification
Summary:
Starting in 2006, buyers of hybrid vehicles will benefit from a tax credit instead of a tax deduction. The IRS has released the specific credit amounts for new hybrid purchases.
Keywords: Ford, Mercury, IRS, tax credit, Escape, Mariner, hybrid
Article Body:
In 2006, a significant change was introduced for hybrid vehicle purchasers: a switch from tax deductions to tax credits. Thanks to the Energy Policy Act of 2005, this shift is highly beneficial, as tax credits directly reduce your tax liability dollar for dollar. In contrast, tax deductions only lower your adjusted gross income before tax calculations. Simply put, this change is advantageous for hybrid buyers.
However, not all hybrid cars qualify for a tax credit. The IRS evaluates each model and issues guidance on eligible vehicles and the amount of the credit. The maximum credit per vehicle is $3,400. Here are the recent credit amounts announced for Ford and Mercury hybrid models:
- 2006 Ford Escape Hybrid Front WD: $2,600
- 2006 Ford Escape Hybrid 4 WD: $1,950
- 2006 Mercury Mariner Hybrid 4 WD: $1,950
If you purchased a hybrid before 2006, you are limited to the IRS-designated tax deduction, typically $2,000. For 2006 purchases, you can claim the listed credit amounts. However, these apply only to the first 60,000 sales for each model. Those purchasing vehicles numbered 60,001 to 120,000 can claim half the credit. Sales between 120,001 and 180,000 can claim a quarter of the designated credit. Ford and Mercury are expected to provide clarity on sales figures to assist buyers.
Beyond environmental benefits, hybrids offer substantial gas savings and a significant tax credit, making them an attractive choice for consumers.
You can find the original non-AI version of this article here: Various Ford and Mercury Hybrids Get Tax Credit Certification From IRS.
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