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#225 of 258 2008 Ford Escape Hybrid.
Feb 02, 2007 (8:34 am)
February 1, 2007
To: All Ford and Lincoln Mercury Dealers
Subject: 2008 Escape/Mariner Hybrid Tax Credit Update
Update to Tax Credits
The 2008 Escape and Mariner Hybrid will be arriving in dealerships early this year. Among the many updates we have made to the vehicles this year, one which you should be especially aware of is an improvement in real world fuel economy versus 2007MY (Window label numbers reflect new EPA calculations, see "Consumers to See Updated EPA Fuel Economy Estimates for 08 Models", communication from 12/13/06). For this reason, the IRS has approved an increase in the Federal tax credits available on our 2008MY Hybrids; up to $3,000 for FWD models (Tax credits on 2007MY Hybrids are unchanged).
Please see below for a chart which shows the federal tax credits currently available on Escape and Mariner Hybrid, as well as their competitors.
08 Escape / Mariner Hybrid (FWD) $3,000
08 Escape / Mariner Hybrid (4WD) $2,200
07 Nissan Altima Hybrid $2,350
07 Honda Civic Hybrid $2,100
07 Toyota Prius $1,575
07 Toyota Highlander $1,300
07 Saturn Vue Greenline $650
07 Escape Hybrid FWD $2,600
07 Escape / Mariner Hybrid 4WD $1,950
Background on the Tax Credit Program
Hybrid federal tax credits remain in effect until a manufacturer has sold its 60,000th Hybrid vehicle (sales after 12/31/2005 and before 12/31/2010). This means that ALL customers who purchased a Hybrid from Ford Motor Company during 2006 are eligible to claim a full credit on their 2006 tax return. In addition, it is expected that the all customers who purchase a Hybrid from Ford Motor Company during 2007 would be eligible to claim a full credit on their 2007 tax return.
Once a manufacturer reaches its Hybrid vehicle limit, the tax credits will begin to diminish. Shortly after the 60,000th unit is sold, the credit will drop to 50% of its full amount for 6 months, followed by 25% of its full amount for an additional 6 months. At that time, the tax credit will be terminated.
Last year, Toyota exceeded their ability to offer full credits. This means that Toyota Hybrid sales which occurred after 10/1/2006 have only been eligible for 50% of the full tax credit ($1,575 for Prius), and will decrease further throughout the year. Escape and Mariner however are still eligible for the full tax credit and our FWD models are currently eligible for a higher tax credit than all other Hybrid vehicles, at $3,000. As customers consider a Hybrid purchase, please ensure they are aware of this information.
For more information visit http://www.fueleconomy.gov/feg/tax_hybrid_new.shtml
#226 of 258 Re: 2008 Ford Escape Hybrid. [mschmal]
Feb 03, 2007 (5:02 pm)
Can anyone inform me on how this credit is filed. Is it a line item on the 1040A Itemized Deductions and you send a copy of proof of purchase along with the W2's; or do I need to pick up a special IRS form?
#227 of 258 Re: 2008 Ford Escape Hybrid. [dfincher]
Feb 05, 2007 (7:02 am)
It is IRS Form 8910 and instructions for 2006.
#228 of 258 Tax credit restrictions
Feb 06, 2007 (1:57 pm)
Someone posted earlier about how those who pay Alternative Minimum Tax (AMT) don't get to take the tax credit. It turns out that even if you don't pay AMT, you may not get to take the full amount of the credit.
The San Francisco Chronicle published an article recently on this titled "Hybrid Tax Credit Bait and Switch". The only way to check on how much of the credit you'll actually get is to calculate what you'd owe under AMT, even if you're not subject to paying the AMT. Your famiy income, the size of your family, and the number of deductions you already take are all issues here, so it's not one size fits all.
I doubt that the Ford dealers are going to mention any of this to customers. Notice how they say that ALL customers who buy a hybrid from Ford in 2006 are eligible to claim a full credit on their 2006 return. Not that Toyota or Honda dealers mentioned it, either.
Feb 22, 2007 (5:06 pm)
A reporter aims to talk to owners who purchased a hybrid last year and received the full tax credit but later found out they no longer could use the full tax credit because of the alternative minimum tax rule. If so, please contact me at ctalatiedmunds.com no later than Friday, March 2, 2007.
#230 of 258 Re: Press Request [KarenS]
Feb 22, 2007 (7:00 pm)
AMT has definitely turned into a major dilemma for our government. On one hand they realize it's become unfair but on the other hand they can't afford to give up the revenue. This whole AMT thing was conceived at the government level. Is it possible that they made a mistake? Wow, how often does that happen?
#231 of 258 Tax credit? What tax credit?
Feb 27, 2007 (3:07 pm)
I guess this says it all.....
I just went through my tax return exercise and can only pocket a tenth of it after child tax credit.... just makes me mad.
What's the point of posting this?
Well, just wanted to see how you folks are reacting to it and if there is anywhere we can formally complain about this.
#232 of 258 Re: Tax credit? What tax credit? [mirspot]
Feb 27, 2007 (4:26 pm)
The need to run the credit through the AMT filter was indeed an unpleasant surprise. I guess that's why no one at the dealership where I bought the car would say one word about it. "We know nothing." They were smart.
But . . . I didn't buy the car for the credit. I wanted a 5-star safety-rated car that also reduced the amount of money I was sending to regimes that use that money to fund terrorism.
So far, no regrets.
#233 of 258 Re: Tax credit? What tax credit? [mirspot]
Feb 28, 2007 (6:57 am)
The sad part is many dealers gouged a big chunk of that presumed tax credit. I wonder if they would be willing to give it back.
#234 of 258 Re: Tax credit? What tax credit? [gagrice]
Feb 28, 2007 (7:36 am)
>>The sad part is many dealers gouged a big chunk of that presumed tax credit.
What does that mean?