|How to claim an Alternative Motor Vehicle Credit*|
Customers who purchase a new 2005, 2006, or 2007 Honda hybrid vehicle on or after January 1, 2006, may be eligible for federal tax credits associated with the Energy Policy Act of 2005. To learn more about how you may qualify for tax breaks under the new energy bill, please consult your tax advisor or visit www.irs.gov.
Honda Models Eligible for Federal Tax Credit
2007 Honda Civic: Hybrid CVT Model Year 2007: $2,100.00
2006 Honda Civic Hybrid CVT—$2,100
2005 Honda Civic Hybrid (SULEV) MT 5—$1,700
2005 Honda Civic Hybrid (SULEV) CVT—$1,700
2005 Honda Insight CVT—$1,450
2006 Honda Insight CVT—$1,450
2007 Honda Accord Hybrid AT Model Year 2007: $1,300.00
2007 Honda Accord Hybrid Navi AT Model Year 2007: $1,300.00
2006 Honda Accord Hybrid AT—$1,300
2006 Honda Accord Hybrid AT (without updated control calibration)—$650
2005 Honda Accord Hybrid AT—$650
Please note that this tax credit replaces the tax deductions that were available prior to January 1, 2006. Vehicles purchased before January 1, 2006, are not eligible for this credit.
In order to qualify for the hybrid tax credit
Limitations to the tax credit
In addition to the above rules, there are also some limitations to the hybrid tax credit. Honda encourages consumers to contact the IRS (www.irs.gov) or a tax advisor about the credit, as various limitations may apply.
1. As stated in the chart above, the tax credit for the 2006 Accord Hybrid is $1,300 with updated control calibration software and $650 without the updated software. Honda is sending a letter to owners of Accord Hybrid models without the latest control calibration software recommending that they visit a dealer for a free software update as soon as possible this year to improve their mileage and their potential tax credit.
2. The IRS has created a phase-out schedule based on calendar quarters, beginning in whichever quarter a manufacturer sells its 60,000th qualifying vehicle. Honda hybrid vehicles purchased during Calendar Year 2006 should qualify for the full tax credit described in the chart above. For Calendar Year 2007, Honda expects to surpass the 60,000 hybrid sales mark, at which time the tax credit will be reduced. If you'd like details of the phase-out, see www.irs.gov.
Please see the following for more information:
*Information provided is for general informational purposes and does not constitute tax advice. For details on the deduction, consumers should check with their tax advisors or the IRS Web site at www.irs.gov.