Hybrids purchased or placed into service after December 31, 2005 may be eligible for a federal income tax credit of up to $3,400.

Credit amounts begin to phase out for a given manufacturer once it has sold over 60,000 eligible vehicles.

Vehicle Make & Model Full Credit Phase Out No Credit 50% 25%

Click on a manufacturer to view vehicles certified for New Energy Tax Credit.

Ford Motor Company Jan. 1, 2006 TBD TBD TBD 2009 Ford Escape Hybrid 2WD $3,000 -- -- -- 4WD $1,950 -- -- -- 2008 Ford Escape Hybrid 2WD $3,000 -- -- -- 4WD $2,200 -- -- -- 2005-07 Ford Escape Hybrid 2WD $2,600 -- -- -- 4WD $1,950 -- -- -- 2009 Mercury Mariner Hybrid 2WD $3,000 -- -- -- 4WD $1,950 -- -- -- 2008 Mercury Mariner Hybrid 2WD $3,000 -- -- -- 4WD $2,200 -- -- -- 2006-07 Mercury Mariner Hybrid 4WD $1,950 -- -- -- 2008 Mazda Tribute Hybrid 2WD $3,000 -- -- -- 4WD $2,200 -- -- -- Purchasers of Ford Hybrids Still Qualify for Tax Credit (Aug. 7, 2007) 2009 Model Year Hybrid Vehicles (July 24, 2008)

General Motors Jan. 1, 2006 TBD TBD TBD 2009 Cadillac Escalade Hybrid 2WD $2,200 -- -- -- AWD $1,800 -- -- -- 2008 Chevrolet Malibu Hybrid $1,300 -- -- -- 2009 Chevrolet Malibu Hybrid $1,550 -- -- -- 2006-07 Chevrolet Silverado Hybrid 2WD $250 -- -- -- 4WD $650 -- -- -- 2009 Chevrolet Silverado Hybrid (2WD & 4WD) $2,200 -- -- -- 2008-09 Chevrolet Tahoe Hybrid (2WD & 4WD) $2,200 -- -- -- 2006-07 GMC Sierra Hybrid 2WD $250 -- -- -- 4WD $650 -- -- -- 2009 GMC Sierra Hybrid (2WD & 4WD) $2,200 -- -- -- 2008-09 GMC Yukon 1500 Hybrid (2WD & 4WD) $2,200 -- -- -- 2007-08 Saturn Aura Hybrid $1,300 -- -- -- 2009 Saturn Aura Hybrid $1,550 -- -- -- 2007 Saturn Vue Hybrid $650 -- -- -- 2008-09 Saturn Vue Hybrid $1,550 -- -- -- GM’s 2008 Chevrolet and Saturn Certified As Qualified Hybrid Vehicles (Sep. 6, 2007) 2007 GM Hybrids Still Qualify for Tax Credit (May 2, 2007) 2009 credit amounts based on information from General Motors.

Honda Jan. 1, 2006 – Dec. 31, 2007 Jan. 1 – Jun. 30, 2008 July 1 – Dec. 31, 2008 Jan. 1, 2009 2005-06 Insight CVT $1,450 $725 $362.50 $0 2005 Accord Hybrid AT & Navi AT $650 $325 $162.50 $0 2006 Accord Hybrid AT & Navi AT (w/o updated control calibration) $650 $325 $162.50 $0 2006-07 Accord Hybrid AT & Navi AT (w/ updated control calibration) $1,300 $650 $325 $0 2005 Civic Hybrid (SULEV) MT & CVT $1,700 $850 $425 $0 2006-08 Civic Hybrid CVT $2,100 $1,050 $525 $0 AT = automatic transmission; CVT = continuously variable transmission; MT = manual transmission; SULEV = Super Low Emission Vehicle emissions rating. Honda Hybrid Begins Phase-Out on January 1 (Nov. 19, 2007) Additional Honda Vehicles Certified for Hybrid Tax Credits (Nov. 22, 2006) Seven Honda Vehicles Certified for New Energy Tax Credit (June 1, 2006)

Nissan Jan. 1, 2006 TBD TBD TBD 2007-08 Altima Hybrid $2,350 -- -- -- 2008 Nissan Altima Certified as Qualified Hybrid Vehicle (Nov. 13, 2007) Nissan Altima Certified As Qualified Hybrid Vehicle (Jan. 11, 2007)

Toyota Jan. 1 – Sep. 30, 2006 Oct. 1, 2006 – Mar. 31, 2007 Apr. 1 – Sep. 30, 2007 Oct. 1, 2007 2005-08 Prius $3,150 $1,575 $787.50 $0 2006-08 Highlander Hybrid (2WD & 4WD) $2,600 $1,300 $650 $0 2006-08 Lexus RX400h (2WD & 4WD) $2,200 $1,100 $550 $0 2007-08 Camry Hybrid $2,600 $1,300 $650 $0 2007 Lexus GS 450h $1,550 $775 $387.50 $0 2008 Lexus LS 600h -- -- $450 $0 2008 Hybrids Certified As Tax Credit For Toyota and Lexus Comes to an End (Nov. 8, 2007) Phase-Out of Credit for Toyota and Lexus Hybrids Continues With Reporting of First Quarter Sales (May 2, 2007)

Sources: Internal Revenue Service and vehicle manufacturers. (Updated January 9, 2009)

The following requirements must be met to claim the credit:

• The original use of the vehicle commences with the taxpayer.
• The vehicle is acquired for use or lease by the taxpayer, and not for resale. (The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.)
• The vehicle is used mostly in the United States.
• The vehicle must be placed in service by the taxpayer after December 31, 2005 and must be purchased on or before December 31, 2010.
  • Click here for more about the credit phase-out and ending date.
  • Click here for information on tax deductions for hybrids placed into service before January 1, 2006.

The credit begins to phase out for vehicles once the manufacturer sells a total of 60,000 eligible hybrid and lean-burn vehicles starting from January 1, 2006. IRS will announce when a manufacturer exceeds this sales figure.

In addition to the phase out rules, any vehicle purchased after December 31, 2010 will not be eligible for the credit.

Claiming the Credit view...

Fill out Form 8910, Alternative Motor Vehicle Credit.

For hybrids acquired for personal use, report the credit from Form 8910 on the appropriate line of your Form 1040, U.S. Individual Income Tax Return.

Hybrids purchased before 2006 are not eligible for the new tax credit, but it may be eligible for a hybrid vehicle tax deduction of up to $2,000.

Some state and local governments also provide incentives for hybrids. Check with your state or local government or view the U.S. Department of Energy's list of State & Federal Incentives & Laws.

Hybrids are not eligibe for electric vehicle tax credits.

• IRS Home Page
• Credit Available for Taxpayers Who Purchased or Leased a Wide Range of Hybrid Models In 2007 (IRS, Jan. 2, 2008)
• Hybrid Cars and Alternative Motor Vehicles (IRS, Updated Dec. 11, 2007)
• Credit Available for Taxpayers Who Purchased or Leased Hybrid Vehicles In 2006 (IRS, Jan. 4, 2007)
• Summary of the Credit for Qualified Hybrid Vehicles (IRS, Updated Nov. 8, 2007)
• Spotlight on... Energy Policy Act of 2005 Tax Credits (USDOE)

DISCLAIMER

The information on this page should not be viewed as an official or legally binding document. Other requirements or exceptions may apply. For more detailed information, please consult an IRS tax representative and/or official IRS publications.